🇦🇺Australia

Inventory Carrying Costs from Kanban Overstock

3 verified sources

Definition

Kanban aims to reduce inventory but manual systems in manufacturing often fail during demand variability, leading to overproduction or stockouts. Plastics firms using two-bin systems still incur high holding costs without digital tracking.

Key Findings

  • Financial Impact: AUD 10,000-50,000/year in carrying costs (15-25% of inventory value annually for C-parts in manufacturing)
  • Frequency: Monthly, exacerbated by quarterly customer scheduling cycles
  • Root Cause: Demand variability straining manual two-bin systems, lack of real-time leveling

Why This Matters

The Pitch: Plastics players in Australia 🇦🇺 waste AUD 30,000+ annually on excess inventory from Kanban mismanagement. Automation of replenishment cuts carrying costs by 20-30%.

Affected Stakeholders

Inventory Manager, Purchasing, Warehouse Staff

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Capacity Loss from Manual Kanban Bottlenecks

AUD 20,000-100,000/year in lost capacity (2-5% of production value for mid-size firm, based on industry benchmarks for idle time)

Customer Churn from Scheduling Delays

AUD 50,000-200,000/year in lost sales (2-5% revenue churn from delivery delays)

Cost of Poor Quality

AUD 20,000-100,000/year in material waste and rework (2-5% of production costs for mid-sized firm)

Waste from Trial-and-Error

AUD 10,000-50,000/year in scrapped materials and labor (1-3% of material costs)

Capacity Loss from Rework

AUD 15,000-60,000/year (40 hours/month downtime at AUD 100/hour machine rate)

PPAP-Bottlenecks und Freigabe-Verzögerungen

Logikbasiert: ca. AUD 50.000–150.000 entgangener Umsatz pro Jahr durch 1–2 Monate verspätete Serienfreigaben infolge unvollständiger/fehlerhafter PPAP-Sets; zusätzlich ca. 40–80 Maschinenstunden/Jahr ungenutzte Kapazität pro kritischem Projekt.

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