Push versus Pull Supply Chain Management

Pull Supply Chain Systems

A pull system in a supply chain refers to a replenishment model that relies on signals from further down the supply chain that inventory needs to be replaced. These signals are not orders retailers as they are batched across time and rather imperfect in that they present a view of demand containing excessive variance. Various types of signals can be used with the most effective being signals derived from checkout counters. However, these signals should not be mistaken for demand. A product that is demanded, but not in stock yields no replenishment signal.