Understanding Kanban Processing using the SRM Portlet

Kanban Management enables you to streamline the day-to-day functions of your shop floor and associated departments. Kanbans are visual cues that authorize the replenishment of inventory at a specified consuming location in a pull environment. When kanban inventory is consumed, a replenishment action is triggered when the holding bin is emptied.

You can use the kanban process in conjunction with the SRM portlet for type 3 (supplier) and type 4 (outside assembly) kanbans.

Note: You can also use the SRM portlet for type 4 (outside assembly) and type 5 (transfer order) kanbans, but the process is different. The process described here pertains to type 3 kanbans only.

A typical kanban process using the SRM portlet includes these steps:

1. The buyer checks out a kanban card using the Kanban Consumption program (P3157), which creates a purchase order.

2. The supplier accesses the SRM portlet and acknowledges the order and confirm shipment of the order using the standard procurement process.

   Note: You must set up order activity rules for the kanban type and make sure that your SRM portlet alerts are set up to use the appropriate statuses.

3. The buyer accesses the Collaborative Portal and notices that a new kanban order is in transit.

4. The buyer checks in the kanban program using the Kanban Consumption program.

   For a two-step kanban, the buyer checks in the kanban and then receives the kanban. For a single-step kanban, there is no check-in process. The system checks in the kanban when the buyer receives it.

5. The buyer receives the kanban order.