2025: the year of Supply Chain Digitalization and Kanban

Supply Chain Digitalization is not just a trend: it’s a constant and enduring transformation across industries and geographies. A growing number of companies are adopting digital tools, as well as kanban methodology, to optimize supply chain management. The goal is to simplify operations, improve efficiency and remain competitive in an unpredictable world.

Why Supply Chain Digitalization is here to stay

The supply chains digitalization is not a passing phase: it’s a strategic shift responding to the demands of modern markets. Companies are navigating increasing complexity in supply chain operations, caused by fluctuating customer demands, by global disruptions and by the changing directions given by economic policies of leading countries. The adoption of digital tools is proving to be the most pursued strategy by industry leaders to overcome these challenges and achieve resilience.

The main advantages are:

1. Enhanced visibility: digital supply chains offer real-time tracking of materials, inventory levels, and production progress. This contrasts the problems related to lack of visibility on replenishment processes.
2. Improved efficiency: by automating repetitive tasks, such as order tracking or inventory updates, companies can significantly cut operational costs and reduce human error.
3. Scalability: digital systems are usually easier to adapt to changes, ensuring that businesses can scale operations without having to significantly impact their organizational structures and processes.

There are several solutions on the market for digitalizing the supply chain, but most of them are based on forecast data of orders and demand trends. Data that, by their nature, need continuous adjustments and updates, and whose unreliability entails a significant risk of stockouts or overproduction. This approach is not sustainable in the long term. This is the reason why many companies have adopted “kanban” for managing the purchasing processes.

What is it and why companies are adopting kanban for supply chain management

Purchasing kanban is a system for optimally managing the replenishment of materials sourced from external suppliers.

Part of the broader “kanban system” for managing material replenishment, it is based on a reordering system in which orders are forwarded to suppliers following the actual consumption of components in stock, and not forecast data. As a result, the different components are ordered from the supplier and delivered only when they need to be replenished, reducing excess inventory, and associated storage costs.

This method for managing material replenishment is particularly beneficial for maintaining lean inventory levels, reducing lead times, and strengthening supplier relationships by creating an efficient supply chain process.

Precisely for these features, purchasing kanban is an efficient and effective method of replenishing materials, and it gives the highest results when integrated into the supply chain digitalization process through electronic kanban software.

Kanban + Supply Chain Digitalization = KanbanBOX

KanbanBOX is the electronic kanban software used by more than 2.500 productive and distributive plants all over the world. It’s also a prime example of how purchasing kanban systems enhanced by digitalization are reshaping material replenishment all along the supply chain.

This is because KanbanBOX digitalizes the informative processes of kanban management, enabling businesses to manage supplier relationships efficiently.

By leveraging the principles of kanban replenishment system and combining them with digitalization, KanbanBOX helps businesses achieve seamless operations.

Advantages for the supply chain

Focusing on the benefits for the supply chain, the main advantages are:

1. Shared Real-Time Data: with KanbanBOX, companies share real-time data on inventory levels and consumption trends with their suppliers. The sharing takes place via a digital dashboard, accessible via Internet. Each supplier can see the data related to its own supplies, like the overview of the client’s stock situation and organize accordingly. This transparent, consumption-driven replenishment process fosters trust and efficiency in supplier relationships.
2. Clear and tracked communication: via the shared digital dashboard, both client and supplier can send and receive communication regarding each single replenishment order, including negotiation, reminders, and problem reports. This allows both parties to transmit and track all communication in one platform.
3. Automated orders: KanbanBOX replaces manual ordering (e.g. via phone or e-mail) with digital automated pre-authorized orders, minimizing errors and administrative workload. This means an order is transmitted from client to supplier via digital dashboard as soon as a component reaches the minimum order quantity.

Plus, KanbanBOX:

• Integrates with existing ERP and logistics systems, creating a unified digital ecosystem.
• Can be used to manage both kanban orders and non-kanban orders.
• Is flexible: it can be gradually applied to more and more suppliers and components. This flexibility ensures to meet the unique needs of each organization, helping them to shift smoothly to a more digital, efficient, and reliable supply chain management process.

E-Kanban and Supply Chain Digitalization: a competitive advantage

The supply chains digitalization is no longer an option but a necessity. Companies that embrace electronic kanban and supply chain digitalization demonstrate to be aware of the real impacts of these solutions, prepared to tackle challenges in this ever-changing market. As businesses continue to evolve, the integration of digital solutions e consumer-driven replenishment processes will remain at the forefront of strategic planning.

If your organization is looking to stay ahead in the digital supply chain evolution, now is the time to act. Request a call with our experts and discover how to start your journey for supply chain digitalization!