Kanban Containers: The Ultimate Solution for Streamlined Inventory Management

Is inventory control one of your biggest challenges? If yes, Kanban Containers offer the best solution.

Let’s all admit the reality! Inventory mismanagement is a nightmare for most businesses, it isn’t just limited to overstocking and understocking. The consequences are real and serious: potential waste, losses, and high cost (the least wanted outcomes in any business landscape).

Similarly, understocking occurs when stock shortages occur. As a result, the entire production line is disrupted, causing delays and inefficiencies. 

So, how can we tackle this mismanagement? “Kanban containers” is the answer! 

These “bins” are a simple yet powerful solution to:

• Optimize inventory levels
• Optimize inventory tracking
• Reduce waste
• Ensure smooth operations in any Kanban system.

Big names in the business landscape, like Microsoft, Vanguard, and BBVA, have leveraged Kanban bin systems to transform their workflows. Do you share similar goals?

Let’s learn how it can be a game-changer for your venture as well. 

How Do Kanban Containers Solve Common Inventory Challenges?

Before exploring the Kanban containers’ details, let’s first understand the challenges businesses face while managing inventory.  

Maintaining the delicate balance between supply and demand is crucial. Traditional inventory systems often fail to manage this balance as they usually lack real-time visibility. 

So, what are the outcomes? Businesses either overstock (tying up capital) or understock (causing delays).

The Kanban storage system is a great tool to get rid of these challenges. A Kanban card or electronic Kanban signal triggers replenishment only when needed – An approach based on the lean philosophy (making materials available only when they’re needed).

As a result, no excessive inventory piles up.  And that’s how Kanban bins help businesses solve inventory challenges. 

Now, move to the next section to learn what these profound yet impactful resources are. 

What Are Kanban Containers?

Kanban containers are specialized storage units. Unlike other containers, which solely serve storage purposes, these bins are designed to optimize inventory management and streamline workflows in manufacturing units and supply chains. 

Kanban bins are an essential component of the Kanban system. The whole system operates on the core concept of JIT supply chain management, reducing waste and improving efficiency. 

How Do Kanban Containers Look?

Although the Kanban containers come in various shapes and sizes, all of them still share a few common characteristics. All these common traits are listed below. 

• Stackability: Since Kanban is all about managing inventory, its stackable design allows for easy stacking. This facilitates easy and efficient storage without securing a major chunk of space. 
• Durability: These are high-end containers made from high-quality plastic or metal, intended to endure harsh industrial use. 
• Color-Coding Options: Kanban containers are also available in multiple colors. Such color-coding facilitates prompt inventory categorization and visual management. 
• Labeling Areas: The containers are thoughtfully designed with designated spaces. These spaces are used to store and display Kanban cards, barcodes, or RFID tags used to track inventory in real time. 
• Easy Access: Another design plus! The open front or lidded designs allow for quick retrieval of materials, eliminating chances of delays. 

Standard Dimensions of Kanban Containers

While sizes vary according to industrial needs, the common dimensions include:

8 Key Benefits of Kanban Containers

1. Components are stocked only when required. Such timely management of the materials reduces waste, obsolete stock, losses, and prevents overproduction.
2. Kanban containers ensure the process flows smoothly without material shortages, hence reducing downtimes. 
3. The professional design using visual management allows workers to spend less time searching for or retrieving materials, enhancing efficiency. 
4. Standardized kanban boxes prevent unnecessary stockpiling.
5. With the use of electronic kanban, stock levels are updated automatically, enabling businesses to control inventory in real time. 
6. Kanban storage system optimizes stock levels and helps businesses cut unnecessary storage and labor costs.
7. These containers enable manufacturers to quickly adapt to demand changes without overproducing.
8. Encourages better communication and coordination between suppliers and production teams.

How Kanban Containers Work in a Production Line

Kanban containers standardize storage and labeling, allowing manufacturers to improve tracking, reduce errors, and maintain an organized Kanban storage system.

Each Kanban container holds a predetermined quantity of components. This determines consistency in production. 

The Kanban card attached to the container includes the following typical details:

Kanban Bin Systems: Two-Bin vs. Single-Bin

Kanban bin systems can be categorized into two prominent types. However, choosing the right Kanban bin system depends on the production volume and required replenishment speed.

• Two-Bin Kanban System:

✅ ️ Only one bin is used. The other stays in reserve.

✅ ️ As soon as the first bin empties, it triggers a replenishment signal. 

✅ ️ Ensures continuous supply without delays. 

• Single-Bin System:

✅ ️ As the name indicates, this system uses a single bin. 

✅ ️ Single-bin system is not recommended as it can cause delays in case of slow replenishment. 

Implementing Kanban Containers: Step-by-Step Guide

The following steps are followed when implementing Kanban containers.

Step 1: Analyze Demand Patterns

Understand usage patterns, as it helps determine optimal Kanban quantities. To do so, conduct a demand analysis based on historical consumption and projected growth. 

Step 2: Establish Kanban Rules

Determine the number of containers required per component by using the following formula:

Number of Kanbans = Daily Demand (DD) x Lead Times (LT) x (1+ %Safety Stock) / Container Capacity (Q)

Consider the following example:

• Daily Demand (DD): 100 units
• Lead Time (LT): 5 days
• Safety Stock: 20%
• Container Capacity (Q): 50 units

Applying the formula: 

Number of Kanbans = 100 x 5 x (1 + 0.20) / 50 = 600 / 50 = 12

Key Takeaway: 12 Kanban containers are needed to maintain an uninterrupted supply.

Step 3: Implement a Visual Management System

Use Kanban cards, color-coded bins, RFID tags, or digital dashboards to monitor inventory levels in real time with the use of computers. 

Step 4: Train Employees and Align Teams

All stakeholders — warehouse staff, production teams, and suppliers must understand the system and work in sync. This is crucial for Kanban to be effective. 

Step 5: Monitor, Optimize, and Scale

Regularly review the Kanban system’s performance, tweak inventory levels based on demand fluctuations, and scale the approach across different production lines.

Overcoming Common Challenges While Implementing Kanban Containers

Some businesses hesitate to adopt Kanban due to the following:

Replenishment Triggers in Kanban Storage Systems

A kanban storage system operates on a pull-based replenishment model. This means that the stock is refilled based on real demand rather than forecasting. 

Some of the common triggers that initiate a demand include:

• Empty Container Signal – When a container is empty, it serves as a visual cue to restock.
• Predefined Number of Empty Containers – Replenishment occurs when a set number of bins are empty.
• Time-Based Replenishment – Restocking happens at scheduled intervals.
• Kanban Cards – Each kanban bin has a kanban card sent to the supplier when restocking is needed.
• Electronic Kanban (E-Kanban) – Digital tracking through barcodes, RFID, or sensors to automate real-time ordering.

Kanban Containers: A Versatile Solution Across Diverse Industries

Whatever industry you’re in, Kanban containers can revolutionize your inventory management. Here’s how various sectors leverage Kanban storage systems. 

Manufacturing

Kanban originated in Toyota manufacturing to optimize production processes. In the manufacturing sector, it helps manage inventory, reduce waste, and ensure a smooth production flow.

Many manufacturing firms use kanban containers to track parts and materials, keeping operations efficient. 

Healthcare

Hospitals and healthcare facilities rely on kanban storage systems to manage medical supplies and equipment. This ensures that essential items are always stocked and reduces the time the staff spends searching for supplies, improving patient care. 

Retail

Retailers use kanban bins to manage inventory and restock shelves efficiently. Doing so helps them prevent overstocking, minimize stockouts, and ensure a seamless shopping experience. 

Automotive

The automotive industry, where kanban first got traction, continues to depend on kanban containers for managing materials and parts. With this system in hand, the manufacturers maintain a steady flow of components to the assembly line, reducing downtime and boosting productivity. 

Food and Beverage

Surprisingly, Kanban boxes have found good use even in the food and beverage industry. These bins help manage ingredients and packaging materials, ensuring that production runs smoothly and meets food safety standards.

Case Studies: How Businesses Are Succeeding with Kanban Containers

Microsoft

This tech giant implemented Kanban storage to manage internal change requests across different time zones. Their transition to a kanban system dramatically improved efficiency, moving from the company’s shallow service to its best. 

Vanguard:

Vanguard integrated a kanban bin system and attained a 4x improvement in delivery throughput and a 75% reduction in lead time. 

BBVA:

This global banking leader adopted a Kanban storage system and enhanced its service delivery while strengthening its workflows. 

Blizzard Sport:

This famous Austrian sports equipment company used kanban boxes to support lean manufacturing. Using this storage system, Blizzard Sports successfully reduced excess stock and ensured a steady flow of production materials.

Fritz Stiefel GmbH

Being a renowned hydraulics manufacturer, this company leveraged electronic kanban and RFID-based tracking to automate replenishment, boosting efficiency and customer satisfaction.

Kanban Containers – A Smart Move for Lean Production

Why is the Kanban container our solution to storage and inventory problems? Here’s the answer! 

A well-implemented kanban bin system ensures uninterrupted production, prevents stock shortages, and enhances efficiency. Maintaining an optimal production process is guaranteed, no matter if you’re using the kanban storage with manual signals or upgrading to electronic kanban. Businesses can significantly improve:

You’re just a few steps away from introducing your business to success, just like Microsoft and Blizzard. 

Ready to transform your manufacturing and supply chain? Start with the Kanban storage system implementation right away. 

Kanban Bins: What’s Your Perspective? 

You’re a business that has already seen dramatic improvements with Kanban containers. If not, you’re probably an expert with intensive knowledge of Kaban storage systems. 

Share your expertise, thoughts, or perspectives on Kanban storage bins. We’d love to take you on board and add more value to our content on Kanban containers.