Sales Kanban: What it is, How it Works and Benefits

Sales Kanban Service with Disposable Containers

In case of delivery with disposable containers, such as boxes or single-use packaging, the replenishment process is simple and straightforward. When a container is emptied, and thus the component inside it has been consumed, the operator managing the material (e.g., a warehouse worker or logistics manager) collects the kanban card attached to the container. The collected kanban cards are then delivered to the supplier, usually in a cumulative way, and serve as the signal to authorize the replenishment of that material.

Once the kanban cards are received, the supplier prepares new boxes (or agreed-upon standard disposable containers) with the predefined amount of material to be replenished and delivers them to the customer.

Sales Kanban Service with Returnable Containers and Logistics Service to the Last Meter

The returnable container delivery service, which already indicates a good level of integration between customer and supplier, can be further enhanced by adding a logistics service to the last meter.

In this case, replenishment is not limited to simple delivery but includes placing the container directly at the point of use, collecting the empty container, and, in some cases, organizing the material inside the customer’s supermarket. In this scenario, sales kanban transforms into an integrated logistics service, where replenishment is closely linked to the physical organization of flows and operational material management within the customer’s facility.

At this point, it’s useful to clarify terminology. Up until now, we’ve described the sales kanban model in its traditional, non-digitalized form. However, in practice, the term “sales kanban” is often used generically to refer to both the traditional model and its digital evolution, with the context clarifying which of the two is being referred to.

For greater clarity, in the rest of this content, we will explicitly use the terms “traditional sales kanban” to indicate the non-digitalized system and “electronic sales kanban” to refer to its digital evolution, which is discussed in the following paragraphs.

As we’ve seen, sales kanban offers numerous advantages. However, as complexity increases, several limitations arise in its traditional form.

• The system relies on manual signals and periodic checks, which can cause delays, errors, or forgetfulness in replenishment.
• The supplier has limited visibility of actual inventory at the customer’s site and receives information only when the kanban card or container is returned.
• Managing multiple customers, items, or service models becomes difficult to scale.
• The lack of structured historical data makes it difficult to analyze consumption, effectively coordinate logistics, production, and sales.
• Sizing management is entirely manual, causing potential issues during consumption peaks or seasonal variations.

These are significant challenges that sometimes prevent companies from adopting a traditional sales kanban system. Fortunately, these limitations can be effectively overcome through the digitalization of the system. Specifically, by adopting electronic sales kanban.

How Electronic Sales Kanban Works

Electronic sales kanban retains the physical flow of materials but makes the replenishment signals automatic and traceable.

To do this, a unique barcode is added to the kanban cards applied to containers, which precisely identifies each individual container. This means that even containers related to the same component and delivered by the same supplier to the same customer will each have their own identifier.

When the customer consumes the material, there is no longer a need to use paper kanban cards or empty containers as replenishment signals. The operator simply scans the barcode on the card using a scanner, mobile device, or smartphone, and can then dispose of the paper card.

The scan of the card records the consumption of that specific container within the platform, making the information immediately visible to both the customer and the supplier.

Upon reaching the predefined replenishment threshold, the software automatically generates the supply request without waiting for the paper cards or containers to be delivered. The supplier can immediately begin production, picking, and delivery activities, planning work based on real-time updated data.

In this way, both the customer and supplier work from the same data set, with full visibility of inventory, ongoing replenishments, and consumption history. Sales kanban evolves from a manual system to a structured, reliable, and easily scalable process.

Not all electronic kanban solutions are designed to manage sales kanban in a collaborative way. Many tools limit themselves to digitizing internal flows, without allowing for direct customer integration.

KanbanBOX, on the other hand, is a software designed to manage electronic kanban in its entirety, including electronic sales kanban, and more.

Specifically, for electronic sales kanban, KanbanBOX allows you to:

• Integrate customers directly into your e-kanban system on the platform.
• Provide your customers with a digital board to view the real-time status of inventory.
• Offer your customers the option to access the platform with a dedicated free license.
• Integrate your e-kanban system with your ERP to align consumption, inventory, and replenishments with management processes.
• Digitize and optimize the management of not only kanban orders but also closed orders, handling all customer orders in a single platform.

In summary, with KanbanBOX, sales kanban becomes a truly shared, traceable, and scalable process, without manual exchanges of information and without losing operational control.