From Push to Pull: The Shift That Transforms Your Inventory

Most inventory systems are built backwards.

We start with a forecast – what we think our customers might buy. Then we place large purchase orders, fill warehouse and hope it all sells.

It’s the traditional mindset: "Build it and they’ll come."

But this is precisely why so many businesses find themselves drowning in inventory, yet still missing critical stock when they need it.

But this is precisely why so many businesses find themselves drowning in inventory, yet still missing critical stock when they need it.

The Problem with Push Systems

Push-based systems rely heavily on:

• Forecasting

• Long lead times

• Bulk ordering

But forecasts are often wrong—especially with new or volatile products.

The consequences?

• Order cycles become rigid and slow to respond.

• Inventory accumulates based on assumptions, not actual demand.

Example: Push-based inventory in action

I worked with a distributor who placed quarterly orders for three months’ worth of stock—based on last year’s sales plus 10% projected growth.

They tied up $150,000 in inventory.

A competitor introduced a new product. Sales dropped. They ended up stuck with 1,200 units of inventory that stopped moving entirely.

✅ Enter the Pull System

A pull-based inventory system works exactly opposite to push.

Instead of filling your warehouse based on forecasts, you:

• Set inventory trigger points based on real, current usage.

• Only replenish when stock hits a defined buffer (like refilling your fuel tank at ¼ full).

It’s demand-driven. Not reactive.

Example: Pull-based inventory in action

We shifted the electrical distributor’s approach from quarterly bulk ordering to weekly, usage-based replenishment:

• Analysed weekly sales patterns per SKU.

• Set a dynamic reorder point for each SKU based on:

  • Actual usage

  • Supplier lead times

  • Sales variability

Results:

✅ Inventory dropped by 15%.

✅ Overstock and slow-moving inventory significantly reduced.

✅ Customer service rates improved due to better availability.

✅ Purchasing became agile, shifting from quarterly to weekly.

✅ Freed up $300k in working capital, reducing exposure to write-offs and markdowns.

Same business. Same products. Different system. Real results. 🚀

How to Move From Push to Pull

Here’s a straightforward way to start:

1. Analyse Actual Demand
   Ditch outdated spreadsheets from last year’s sales. Focus on current demand trends.

2. Set Dynamic Reorder Points
   Use real usage, variability, and lead times—not fixed MOQs or arbitrary forecasts.

3. Visualise Your Inventory Clearly
   Whether via Kanban, dashboards, or DDMRP-style buffers. Make your inventory health visible and actionable.

Forecasts still have their place, especially for long-lead items. They provide a forward anchor.

But shifting as much as possible from push to pull offers radical improvements with minimal disruption.

Forecasts don’t run your business. Your customers do.