Supplier Kanban Definition

Supplier Kanban is an extension of an internal Kanban system used for supply replenishment from external suppliers. It aims to improve delivery reliability.

With Supplier Kanban, the supplier is given visibility into their customer’s inventory levels, allowing them to anticipate when to deliver supplies to avoid stockouts. This helps to ensure delivery reliability and prevents delays in the production process. The supplier receives signals from the customer’s internal Kanban system, indicating when inventory levels have fallen below a specified level. This allows the supplier to prepare and deliver the necessary supplies before they are needed, streamlining the supply chain and reducing waste. Kanban systems are widely used in lean manufacturing to improve efficiency and reduce inventory levels.