A framework for implementing a Supplier Kanban System through an action research methodology

Purpose The aim of this study is to develop a framework for the implementation of a Supplier Kanban System. Design/methodology/approach The research was conducted within a factory focusing on the warehousing and supplier-related operations using an action research methodology. Findings The study period spanning over six years was aimed to reduce the inventory and the manpower required to manage this inventory. This initiative led to a substantial average savings of more than 500,000 Malaysian ringgit annually. Research limitations/implications The focus of the study is on a framework for implementing a Supplier Kanban System in a small or medium-sized company within the automotive industry. Practical implications This framework is designed to be self-sufficient such that the members of the organisation can use it without the help of external experts or consultants. Social implications Reduction in inventory stored in the warehouse, the amount of redundant work carried out by the employees and other non-monetary improvements which are difficult to monetise resulted in a much better work environment and happier employees. Originality/value The change in the paradigm of the manufacturing value chain affects the Tier 1 and 2 suppliers in Malaysia. The lines and value chains posing challenges to the suppliers have brought the idea of the Supplier Kanban System. The Supplier Kanban System adopted the action research cycles and continuous learning cycles, and this process was documented and developed as the Framework for the Implementation of a Supplier Kanban System.