Ultriva Explains Why Cloud-based Kanban Has Taken Over MRP
Cupertino, CA -- (SBWIRE) -- 03/11/2014 -- Ultriva, the leader in collaborative supply chain solutions, is quickly becoming the enterprise-wide solution for many multi-national corporations. Actual consumption, rather than forecasts, drives the kanban pull system of replenishment.
Narayan Laksham, Ultriva founder and CEO commented, “Keeping production lines optimally stocked with necessary parts and components - when they are needed and in the right quantity is essential. As a product is consumed in the production process, an order for depleted inventory must be placed immediately through an electronic cloud-based kanban system. Consumption-driven replenishment proves its applicability across tiers of distribution and supplier networks and has become the compelling alternative to more traditional Material Requirements Planning (MRP) or “push” style systems, which rely on forecasts to determine what and how much to produce.”
While forecasts have proven useful in predicting overall demand, they can be poor indicators of exactly which products will be needed and when. Multi-tiered supply chains push manufacturers further and further from their customers, and forecasts further and further from reality. As a result, information is diluted by each layer in the distribution system, and excessive inventory and costly last minute change orders ripple through the supply chain.
Laksham insists, “Keeping expensive inventory is a waste of resources, including working capital, storage space, and the manpower needed for additional handling. More predictable replenishment results in the elimination of intermediate tiers and their buffer stock in both the customer and manufacturer supply chains.
To learn more about electronic cloud-based kanban system, go to: http://info.ultriva.com/download-whitepaper-cloud-strategy-to-improve-legacy-mrp-and-supply-chain-processes.
About Ultriva, Inc.
Ultriva’s (http://www.ultriva.com) cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model. Ultriva, based in Cupertino, CA, implemented a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. The need for a collaborative transactional portal is essential and E2E (End to End) Pull allows large multi-national manufacturers to actively collaborate with customers for actual demand and synchronize with suppliers for replenishment. E2E Pull offers a better solution to balancing supply with customer demand through procurement strategies, materials and inventory policies tied to actual demand signals. Many suppliers want to provide sufficient service levels to customers and turn supply replenishment and synchronization into a competitive advantage. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as ATK, CareFusion, Emerson, Ingersoll Rand, McKesson, Magellan, Regal Beloit, Thermo Fisher and more. Follow Ultriva on Twitter at @Ultriva.