# Kanban System (Inventory Management)

*Last updated: 2026-06-25*

> A Kanban system is a pull-based method for controlling material flow, where visual signals – traditionally cards or empty containers – trigger replenishment instead of forecast-driven production.

A Kanban system is a pull-based method for controlling material flow, where visual signals – traditionally cards or empty containers – trigger replenishment instead of forecast-driven production. The term is Japanese and translates roughly as "signboard" or "card." Unlike push systems that rely on demand projections, Kanban responds to actual consumption: a replenishment order is placed only once stock falls below a defined threshold. In contract logistics and freight forwarding, the method reduces excess inventory, lowers tied-up working capital, and shortens throughput times. Electronic Kanban (e-Kanban) extends the concept across multi-tier supply chains, replacing physical cards with automated system-generated signals.

**Source:** [https://en.wikipedia.org/wiki/Kanban](https://en.wikipedia.org/wiki/Kanban)

## Quick Facts

| Property | Value |
|---|---|
| Term | Kanban System (Inventory Management) |
| Language | EN |
| Word count | 100 |
| Last updated | 2026-06-25 |
| Source | https://en.wikipedia.org/wiki/Kanban |

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