Sales e-kanban: what it is, how it works and benefits

What is sales e-kanban

Sales e-kanban (also known as electronic kanban for sales, e-kanban for sales or e-kanban with customers) is a sales kanban system enhanced by the benefits of digitalization through the adoption of specialized software, known as “electronic kanban software” or “e-kanban software“.

The adoption of this type of software helps overcome the visibility and control limitations found in traditional, non-digitalized systems. Specifically, the software allows the company to tracks consumption activities and data, to share material status between the customer and supplier, and manage replenishment activities in a structured manner. This makes the kanban sales system more reliable, scalable, and easier to manage, even in complex contexts.

Let’s examine how it works, using a system implemented with KanbanBOX, electronic kanban software which allows for the direct integration of customers into the platform. This feature is crucial, as many e-kanban software solutions are closed systems that do not allow the integration of either customers or suppliers, limiting collaboration and operational flow efficiency.

How sales e-kanban works

In an e-kanban sales system, customer and supplier agree in advance on the service rules: which components to manage, the type of containers, the quantity per container, and the number of containers to be kept at the customer’s location.

These details are recorded on each container via labels (kanban cards), which contain a unique barcode that identifies the specific container and its contents.

Once these rules are defined, the replenishment process is simple and structured.

When a client’s operator empties a container (i.e., depletes the material), he scans the barcode on the corresponding kanban card and dispose of the card.
The scan is registered by the software, which tracks consumption and immediately makes it visible to the supplier. Once the minimum reorder threshold is reached, the system automatically generates a replenishment request.
The supplier receives the order via the platform, prepares the material based on the pre-agreed quantities, prints the new kanban cards, and ships the containers to the customer.
The customer receives the material, and the replenishment process is completed.

Benefits of sales e-kanban for customers

The sales electronic kanban service is highly appreciated by both parties involved. Customers, in particular, recognize its benefits in terms of ease of management, transparency, and efficiency in supply activities. These advantages make sales e-kanban not just a preferred option but, in some cases, a decisive criterion in supplier selection, as it helps ensure a smoother and more reliable material flow.

Here are the main benefits for customers who choose to establish a supply relationship based on an e-kanban service:

Elimination of manual reorder tasks: orders are automatically generated based on actual consumption.
Greater operational efficiency: fewer emails, phone calls, and daily checks for procurement activities.
Faster and more stable procurement times: the supplier’s visibility into stock status, along with pre-agreed standard quantities and lead times, optimizes the process.
Reduced inventory: real-time transmission of the replenishment signal shortens lead time and reduces the need for high stock levels.
Lower risk of stock-outs: continuous monitoring of stock levels and timely replenishments ensure material availability.
Complete traceability of each order: the status of each order (in progress, ready, shipped) can be monitored in real-time without needing to call the supplier.
Transparent communication: the platform centralizes all information, improving visibility and collaboration with the supplier.
Proactive, reliable service: the automated and structured system allows the focus to remain on high-value activities, delegating repetitive procurement tasks to the software.

Among the benefits of the sales e-kanban service implemented with KanbanBOX software is the ability for the customer to access the platform with a free dedicated license provided by the supplier. This license allows the customer to view and monitor their relevant supplies at no additional cost.

Benefits of sales e-kanban for suppliers

More and more suppliers, distributors, and other businesses are choosing to offer sales e-kanban service as part of their commercial strategy due to its significant benefits, including higher service quality.

Here are the main benefits of a sales e-kanban system for suppliers who implement it:

Streamlined and automated order receipt processes: orders are automatically generated based on actual material consumption, reducing manual workload.
Greater operational efficiency, fewer manual tasks, fewer errors: no more emails, phone calls, follow-ups, or repetitive checks, optimizing time and resources, particularly in the automatic calculation of optimal kanban sizing. [Discover more in this article]
Full visibility into consumption: suppliers can also monitor the customer’s consumption in real-time, allowing them to plan replenishments at the right time.
Shortened lead time and reduced emergencies: real-time order transmission reduces procurement times and accelerates deliveries, minimizing unexpected issues and urgent requests.
Seamless integration with ERP and other software (e.g., WMS): ensuring data consistency across systems and reducing duplication and misalignment.
Complete order traceability: orders are tracked from the moment the order is placed until delivery, ensuring control and transparency.
Performance data: analyze consumption trends and delivery punctuality, demonstrating SLA compliance, even with the potential integration of Business Intelligence (e.g., Power BI).
Better customer service and internal efficiency: a continuous and uninterrupted flow leads to greater satisfaction and loyalty, with fewer emergencies and stronger customer relationships.

Additionally, the supplier does not incur extra costs to add more customers to the platform. The service cost with KanbanBOX does not change based on the number of customers connected, making it easier for the supplier to expand the service to all their customers. This results in a scalable model that can be easily extended to multiple customers while maintaining operational efficiency.

Not just e-kanban: managing closed orders

Sales e-kanban was born to manage continuous orders with the benefits of digitalization, optimizing kanban-based workflows. However, advanced software like KanbanBOX extends these benefits to managing closed orders, integrating everything into a single platform.

The process is similar: the order request is sent via the software, the supplier fulfills the order, prints the dedicated kanban card, and applies it to the container. The main difference is that while the kanban order is based on consumption and replenishments, closed orders are one-time orders that do not trigger replenishment requests.

Managing both kanban orders and closed orders within a single platform provides the supplier with a unified view of all orders, standardized processes, and more precise planning.

Tangible operational benefits

Sales e-kanban provides tangible benefits for both suppliers and customers by simplifying and optimizing the material flow, reducing errors and inefficiencies.

By automating the replenishment process and providing real-time visibility, both parties can focus on high-value activities, such as improving service quality and managing strategic relationships. This makes the system advantageous not only in terms of efficiency but also in terms of long-term collaboration.

If you’d like to see if sales e-kanban is the ideal solution for your business, contact us for a personalized video call to discuss further!