Kanban Inventory Management in Epicor ERP: Challenges, Set Up & Benefits

Do you know why many organizations choose a Kanban inventory management system? This method improves inventory flow by using visual cues to manage replenishment in real time. It reduces waste, improves lead times, and enhances operational efficiency. 

Manual Kanban systems lack the real-time visibility and automation needed for complex environments. 

When integrated into an Epicor ERP system like Epicor Kinetic or P21 ERP, Kanban becomes a dynamic tool for inventory control and supply chain optimization. 

This article explains how to implement a Kanban system inside Epicor ERP and the advantages it brings to manufacturers and distributors. 

Common Challenges When Implementing Epicor Kanban—and How to Overcome Them 

Even with a strong ERP system experience, implementing the Kanban system can create operational challenges. Here are some of the most common issues and how TeccWeb addresses them. 

Resistance to Change 

Team members who are used to traditional processes may resist adopting the new method. 

Solution: 

  • Start with a pilot project 
  • Train key users on the benefits and workflows 
  • Showcase quick wins to build internal trust and support 

Data Inaccuracy 

Manual errors in recording inventory movements can compromise the triggers. 

Solution: 

  • Enforce real-time inventory updates 
  • Use barcode scanning and mobile ERP products and tools to automate data entry 
  • Audit stock regularly to validate system accuracy 

Poor Integration Between Kanban and ERP Modules 

An incomplete configuration can disconnect the flow of work from purchasing or production planning. 

Solution: 

  • Work with ERP specialists, like TeccWeb, to map Kanban processes fully into Epicor’s inventory, purchasing, and production modules 
  • Test Kanban workflows in a controlled environment before full deployment 

Setting Up a Kanban System in Epicor ERP 

The process of implementing Kanban inside Epicor ERP requires careful setup to align inventory control with production and purchasing workflows. Here are the three key steps. 

Planning and Scoping 

Getting started with Kanban is simple. Start by identifying inventory items best suited for Kanban control. Focus on high-volume, repetitive parts with predictable usage patterns. 

Define: 

  • Target inventory levels 
  • Minimum and maximum (Min/Max) stock thresholds 
  • Replenishment cycle times 

Clear planning ensures Kanban aligns with both operational needs and supply chain constraints. 

Configuring Kanban Cards and Boards 

Set up digital cards within your Epicor ERP system. Each card should: 

  • Represent a real inventory item or production part 
  • Automatically trigger actions when reaching reorder points 

Configure the board to reflect material flow stages, such as «Available,» «In use,» and «Replenish». Link cards to purchase orders or work orders to automate replenishment processes. 

Integrating with Production and Procurement 

Epicor ERP solutions allow Kanban signals to trigger purchasing or manufacturing processes in real time. 

Key integrations include: 

  • Procurement: Auto-generate supplier purchase orders when stock reaches minimum levels. 
  • Production line: Initiate work orders to produce more parts based on consumption rates. 

This integration reduces lead times, minimizes manual intervention, and improves supply chain responsiveness. 

Key Elements of a Simple Kanban System for ERP Integration 

Kanban is a pull-based method to control inventory and production flow using visual signals. When integrated into an ERP system like Epicor, it relies on structured, repeatable elements. 

A typical Kanban board in ERP tracks materials through key stages, such as «available,» «in use,» and «replenishment needed.» It uses: 

  • Visual cues like cards or bins to signal inventory status. 
  • WIP limits (Work In Progress) to prevent overproduction. 
  • Pull system logic to initiate restocking based on real-time needs. 
  • Cycle time tracking to monitor flow efficiency. 

How Does This Method Help Companies? 

Standalone Kanban systems work well for small operations. For larger, dynamic environments, integrating the method with an ERP system like Epicor helps companies: 

  • Reduce excess inventory. 
  • Improve production scheduling. 
  • Increase responsiveness to changes in demand. 

However, manual boards and physical signals often create gaps in data accuracy and process visibility. 

That’s where Epicor ERP transforms this method into a real-time, automated inventory management solution. 

Kanban for Operations: Features to Leverage in Kinetic and Prophet 21 

Cloud-based ERPs, like Epicor Kinetic for manufacturers and Prophet 21 for distributors, offer built-in ERP tools to manage Kanban processes digitally and efficiently. 

Both of these Epicor ERP solutions allow you to create, manage, and automate Kanban workflows for real-time inventory control and production scheduling. 

Epicor Kinetic 

Epicor Kinetic supports Kanban through the following:  

  • eKanban functionality: Automates replenishment signals between production, inventory, and suppliers. 
  • Smart demand forecasting: Adjust triggers based on real-time consumption trends. 
  • WIP management: Controls Work In Progress (WIP) using visual boards and cycle time tracking. 
  • Real-time analytics: Provides dashboards for tracking card status, inventory levels, and material flow. 

Epicor Kinetic’s flexibility allows manufacturers to tailor Kanban production processes for complex environments. 

Epicor Prophet 21 (P21) 

Prophet 21 enhances distribution operations with Kanban by: 

  • Visual order management: Tracks inventory movement through dynamic Kanban dashboards. 
  • Replenishment optimization: Automates purchasing processes based on predefined rules. 
  • Supplier integration: Sends automated replenishment requests to suppliers when stock levels reach minimum thresholds.  
  • Multi-site visibility: Manages inventory across warehouses with real-time updates. 

P21’s Kanban ERP automation tools help distributors reduce lead times and improve inventory turnover. 

Why Integrate Kanban with Your Epicor ERP Software? 

Manual Kanban supply systems create gaps between production activity and inventory data. Without real-time updates, teams risk shortages, overstocking, and delays. 

Integrating the method directly into your Epicor ERP system solves these problems by automating inventory signals and synchronizing production and procurement. 

Key benefits 

  • Real-time inventory tracking: Cards update automatically as inventory levels change. 
  • Automated replenishment: System-driven signals create purchase orders or work items without manual input. 
  • Improved supply chain visibility: Managers can track inventory, consumption, and order status directly within Epicor dashboards. 
  • Cycle time reduction: Faster reaction to demand changes improves workflow efficiency. 
  • Error reduction: Automation eliminates missed signals and manual reporting mistakes. 
  • Increased customer satisfaction: Accelerated turnaround times, facilitated information sharing and collaboration, and improved delivery times contribute positively to customer satisfaction. 
  • Reduced corporate holding costs (storage, insurance, obsolescence risks): Companies using this method benefit from faster capital turnover. 

With Epicor Kinetic and Prophet 21, Kanban becomes a fully integrated inventory solution. 

Expert Support for Kanban Integration in Epicor ERP Systems 

Implementing this method into an ERP system demands more than a technical setup. It also requires operational expertise. 

At TeccWeb, we help: 

  • Design Kanban systems tailored to your Epicor Kinetic or P21 ERP environment. 
  • Configure Kanban signaling system, such as boards, cards, sticky notes, and workflows directly within your ERP. 
  • Integrate Kanban with purchasing, inventory, and production modules. 
  • Optimize inventory levels and improve supply chain responsiveness. 
  • Train teams to manage real-time Kanban operations effectively. 

Our deep experience with Epicor ERP ensures your Kanban system is fully integrated, scalable, and designed for continuous improvement. 

FAQ — Learn More About the Kanban System 

What Does Kanban Mean? 

Kanban is a Japanese word. It means visual card or «signboard.» 

What Is a Kanban Inventory Management System?  

A Kanban inventory management system is a visual method for controlling inventory flow based on actual consumption, not forecasts. 

Instead of pushing materials based on predicted demand, Kanban uses pull signals triggered by real inventory usage to drive replenishment. This method reduces overstock, improves cycle times, and increases production efficiency. 

Is Kanban a Software? 

No, Kanban is not a software. It is a method used to manage and visualize workflows. Epicor is a software. It is designed to provide enterprise resource planning solutions.  

Epicor offers cloud-based ERPs such as Epicor Kinetic and Prophet 21. These SaaS solutions include inventory, supply chain and manufacturing process management capabilities. The Kanban process integrates these ERPs’ materials management or inventory management modules and legacy systems such as Epicor 10. 

Therefore, Epicor’s ERP environments are conducive to implementing the Kanban method for managing inventories and manufacturing processes. 

Where Does the Kanban System Come From? 

This approach originated from the lean manufacturing and production practices of the Toyota Production System (TPS). It is known as one of the most efficient ways of managing and tracking inventory for businesses. 

What Does a Typical Kanban Board Look Like? 

A typical Kanban board tracks the flow of work or materials across different stages, using Kanban cards to signal the need for action. 

Cards move through the stages, visually indicating when to reorder, restock, or replenish inventory. 

What Type of Companies Can Benefit from a Kanban Scheduling System? 

Kanban has been widely adopted in various industries and fields beyond manufacturing. You can find it in retail, healthcare, services, and any industry where it’s essential to find the right inventory planning solutions to meet customer demand while minimizing costs. 

What Is JIT Manufacturing? 

Did you know that Kanban is a practical tool within the broader philosophy of just-in-time manufacturing (JIT)? JIT manufacturing focuses on the principle and strategy of producing goods just in time to meet demand. In that sense, it is a vital tool for managing inventory flow.  

Replenishment optimization and on-demand scheduling in Kanban within Epicor ERP solutions help companies restock only when needed. This method improves production monitoring, thanks to visual inventory signals whenever there is a shrinkage in stock levels.  

The Kanban ordering process also specifies the purchase orders for parts and materials at each stage of the production process.