Supplier Kanban

What is a Supplier Kanban?

Supplier Kanban is a method to increase delivery reliability and to reduce replenishment lead time. It can be used as an extension of an internal Kanban system or without internal Kanban system. The aim of Supplier Kanban is to ensure a demand-driven supply of parts by the suppliers. For this reason, it goes beyond the boundaries of the company and involves the suppliers in the principle.

In contrast to classical Kanban systems, the demand in Supplier Kanban is not reported to an internal supply point but to an external supplier who has the required products in stock. The information can be transmitted as an order or electronically. The determination of requirements is carried out, for example, via transponder, eKanban or Kanban container. This reduces throughput and replenishment times.