ERP, MRP, Kanban, Pull System, and Vending Machines

A critical concept in Lean Management is the concept of “Pull”.

In traditional production scheduling software or job shop software, such as Enterprise Resource Planning (ERP) and Materials Resource Planning (MRP), parts are produced and moved to the next process even if they are not needed. This process wouldn’t be so bad if parts could be produced exactly on schedule all throughout the entire process. But, if just one process has trouble and the line is delayed or stops, then downstream processes will suffer greatly. The result will either be a “feast” of parts or a “famine” of parts. This is often the result of traditional “push” systems.

On the other hand, pull systems eliminate underproduction or overproduction by limiting production to those parts demanded by the immediate downstream process.

The Vending Machine

A great illustration to show how a pull system works is the vending machine. In a typical scenario, the customer pulls product from the vending machine – the exact item, quantity wanted, and at the time it is needed. Then, the supplier replenishes only the items that need to be replaced.

In contrast, in Enterprise Resource Planning Software (ERP Software), the supplier replenishes the vending machine even if it doesn’t need to be replenished, resulting in produce overflow and over-inventory.

Most Processes Can be “Pull”

If you think about it – an unintuitive as it might seem – most processes are really push processes. For example,

• software development: features are pushed from product development to the engineer, leading to overwhelmed engineers, project deadlines missed, feature creep, and feature bloa

A Challenge For You

Today, view the processes you are involved in from the perspective of Pull. No matter what the process is – try to view it from the perspective of pull. Ask,

If [this] process were a pull process, what would it look like? What problems might be avoided if it were a pull process?

Top 100 ERP Software Vendors

In case you were interested, based on a customer survey conducted by Inbound Logistics Magazine, below are the top 100 ERP Vendors and top 100 ERP Consultants.

• Aankhen
• Accellos
• Agistix
• AL Systems
• Appian Logistics Software
• Apprise Software
• Apriso
• Arigo
• ASC Software
• BestTransport
• Cadre Technologies
• CAPE Systems
• CargoSmart
• Cass Information Systems
• Cheetah Software Systems
• ClearTrack
• CombineNet
• Compliance Networks
• CT Logistics
• CTSI
• Data2Logistics
• Datex
• Deposco
• Descartes Systems Group
• Elemica
• Epicor Software
• Foxfire Technologies
• Freightgate
• GlobeRanger
• HighJump Software
• IES
• Infor
• InMotion Global
• Inovis
• INSIGHT
• Integration Point
• Intergis
• Interlink Technologies
• IQMS
• JDA Software Group
• Kewill
• Knighted Computer Systems
• LeanLogistics
• Llamasoft
• Logility
• Logistics Management Solutions
• LOG-NET
• Made4net
• Magaya Corporation
• MagicLogic Optimization
• Management Dynamics
• Manhattan Associates
• MercuryGate International
• Mincron Software Systems
• New Generation Computing
• Nulogx
• nVision Global
• New Generation Computing
• Next View Software
• NTE
• nVision Global
• One Network Enterprises
• Oracle
• PeopleNet
• PINC Solutions
• Precision Software (QAD)
• Prophesy
• QuestaWeb
• RateLinx
• Reddwerks
• RedPrairie
• Retalix USA
• RMI
• Robocom Systems Int’l.
• Royal 4 Systems
• SAP
• Shippers Commonwealth
• ShipXpress
• Smart Software
• SmartTurn
• SMC3
• SPS Commerce
• Sterling Commerce
• Supply Chain Consultants
• TAKE Supply Chain
• TCLogic
• TECSYS
• Telogis
• Terra Technology
• TMW Systems
• ToolsGroup
• TradeBeam
• Transite Technology
• TransportGistics
• TransWorks
• U.S. Bank Transportation SolutionsÝ
• UltraShip TMS
• UPS Logistics Technologies
• USTC Live Logistics
• XATA
• Xterprise
• YardView
• Zepol