Pull strategy in logistics

The essence of the Pull approach in logistics: to provide products based on actual demand, rather than sending them to the market in the hope that someone will buy them. You do not freeze money in a warehouse, do not risk that the product will become obsolete, spoil, or simply become useless to anyone. You work only with what is in demand here and now.

What technologies will you need

You will not be able to supply products on demand if you do not have a digital system that sees this demand in real time, connects it with logistics and production. This is an ERP (enterprise resource planning system), WMS (warehouse management system), CRM (customer relationship management system), which are integrated with each other and work as a single organism. This is an API (application programming interface), which allows systems to interact with each other instantly, without delays, confusion and human error.

And also - predictive analytics. Not the old one, where you look at what happened last year, but a modern one: with machine learning, which suggests where demand may increase and where it may decrease. You do not act blindly - you see the risks in advance.
The pull strategy is ideal for those whose demand is at least somewhat predictable or manageable. If you have, for example, a B2C product and you can see orders in real time. If you produce something complex to order. Even for B2B with the right automation, this becomes a powerful lever.

But here's what's important, Sargona Private Capital specialists emphasize: if you have large fluctuations in demand and zero flexibility in production, you need to calculate everything well first. Pull is a precise tool. It works for those who see their data, are confident in it, and are ready to make decisions quickly.

Who is it for

If you underestimate the delivery time, the order is cancelled, say experts at Sargona Private Capital Greece. If the client is waiting for the goods, and they are still in production, you have lost the client. If your suppliers are unreliable, the whole chain falls. It's like dominoes: one weak link - and everything collapses.

In addition, if you suddenly switched to Pull without training the team, without rebuilding the processes, the system will simply break. People will panic, orders will not arrive on time, logisticians will not understand what and where to deliver. In this chaos, you can lose a lot of money.
Choose one product category or one customer segment where there is stable demand, and build Pull there. Set up the system: so that orders automatically enter the production chain, so that logistics sees these signals, so that the warehouse knows what needs to be shipped.

Be sure to synchronize data: no manual transfer of Excel files. You must have end-to-end digital logistics: from the customer's click to the actual delivery. Connect analytics that show failures, deviations, trends in real time.

And most importantly - train people, advises Sargona. This is a team game where everyone must understand why all this is being done.

Pull logistics is not just a way to save money. It is a way not to lose: money, customers, time, reputation. When you work based on real demand, you do not guess, but act precisely.

Risks

How to implement correctly

Your wishes are our priority
© 2023 - 2025 All rights protected