Kanban supply chain
C3. Logistics, freight forwarding and multimodal tradeDefinition
Pull based replenishment model.
A kanban supply chain uses kanban signals, physical cards, bins, or electronic triggers, to pull replenishment only when downstream demand consumes stock, rather than pushing goods to a forecast. Each container or card authorizes one replenishment lot, so inventory is capped by the number of kanbans in circulation and the chain self-regulates against overproduction. The method extends the Toyota Production System from the factory floor to supplier deliveries, where vendors ship against kanban triggers instead of bulk purchase orders. It underpins just-in-time operation and depends on short, stable lead times and accurate consumption data.
Source: Toyota Production System (kanban pull system)