Push Vs Pull Systems

In operations and looking at some process flow diagram, we define a push system as one where production is based on forecasted demand, pushing products through the supply chain to meet anticipated customer needs. In contrast, a pull system is driven by actual customer demand, pulling products through the supply chain only when there is a confirmed order.

For example, instead of making as many ice cream bars as you think you’ll sell, a pull system would wait for customers to place orders before producing the ice cream bars, thereby reducing excess inventory and minimizing waste. However, we see an obvious inefficiency here, as customers may have to wait longer for their ice cream bars to be made, especially during peak times.

You should use a push system when:

• You can accurately forecast demand.
• The production lead time is long.
• Simple project that doesn’t vary much.

You should use a pull system when:

• Demand is unpredictable.
• You want to minimize inventory costs.
• Customization is important to customers.

Often, you’ll see a mix of the two. For example, a company may use a push system to build common parts of a car like frames or doors, but use a pull system for paint and type of seat leather.