Essay by Peter Reaney November 2004

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This document is a statement of understanding the process which has been born out of the DDSC initiative for managing raw material through a pull supply environment. DELJIT messaging process.


The baseline competence of the material supply/logistics will be that the material on point of receipt will be directed to the point of use with a minimal delay. The material can be stored in lineside locations in the closest format allowable for manufacturing purposes, those locations(footprints) can be used to send pull messages to the vendors giving a permission to ship.

Point-of-use storage, as opposed to centralised stockrooms, is clearly a technique that supports the successful implementation of just-in-time . Hopefully this document is a baseline description of how you could take advantage of POU storage to reduce handling and its attendant data transactions.


To quickly obtain the benefits of POU storage, a set of principles have to be developed,

1. Visible, dedicated locations need to be provided for each part.

2. All parts should be classified as shown:-

Kanban type=K. reordered on a kanban(Deljit Kanbans) basis with a maximum of 72 hours supply. Wanding these at POU can transmit the pull messages into the EDI environment.

Kanban type=B. Bulk items reordered on MRP(material requirement planning) basis with a 20 days

supply or consignment stocks could also be effectived?.

Kanban type=M. Major Kanban(footprints) which will be replenished

via using RF equipment to a replenishment module to transmit the pull messages into the EDI environment.

Kanban type=F. Feeder Kanban(footprints) that will only pull material from the type M KANBANS.

3. Receipts to be identified with POU storage locations from either the VENDOR or internally produced labelling.

4. Material handling to be restricted to one movement

fromthe receiving dock to POU storage with one attendant...