Pull Ordering System

In the context of logistics, a pull ordering system is a system in which each warehouse controls its own shipping requirements by placing individual orders for inventory with the central distribution center. A replenishment system where inventory is “pulled” into the supply chain (or “demand chain” by POS systems, or ECR programs). Associated with “build to order” systems.

In a pull ordering system, the flow of inventory is determined by customer demand rather than by forecasts or other upstream planning. This type of system can help to avoid stockouts and excessive inventory levels. Since each warehouse is responsible for placing its own orders, there may be some coordination required between warehouses to ensure that enough inventory is available overall.

There are several advantages to using a pull ordering system:

• This type of system can help to reduce lead times and inventory levels, and it can be more responsive to changes in customer demand.
• Additionally, since each warehouse is responsible for placing its own orders, there may be some coordination required between warehouses to ensure that enough inventory is available overall.

Pull ordering systems are commonly used in manufacturing and logistics operations. However, this type of system can be adapted for use in other types of businesses as well. For example, a retail store could use a pull ordering system to restock shelves based on customer purchases.

Related Links

Push–pull strategy
Push System Vs. Pull System Inventory Control
Push-Pull Manufacturing – Lean Manufacturing
Inventory Management: Understanding Push and Pull Processes
The (true) Difference between Push and Pull – AllAboutLean.com
MRP as Pull and Push System – Online Supply Chain and Logistics Management
What is Push and Pull Strategy in Supply Chain Management? Blockchain Council
From Push to Pull Logistics – The Geography of Transport Systems
Pull System – Graphic Products

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