What is the pull principle?
The pull principle is a concept from lean management that is used to reduce waste in the production process. In the pull principle, production is controlled by actual demand so that no surplus products are produced. This makes it possible, for example, to reduce storage costs.
How does the pull principle work?
In the pull principle, retailers cooperate with production. The retailers provide the producers with up-to-date information on stock levels and sales figures. On this basis, the producers produce. If the producers receive information from the retailers that their inventories are too low to meet current demand, production starts. Efficient logistics and production are necessary to serve the market quickly.
Comparison of pull principle and push principle
The main difference between a pull principle and a push principle is that in the pull principle, current demand "pulls" the goods. This means that it dictates when and how much must be produced. In the push principle, on the other hand, production dictates how much of a product is "pushed" onto the market.
Pull principle: the market "pulls" the goods from the producers
Push principle: the producers "push" the goods onto the market