Push vs Pull Supply Chain: How to Choose the Right Strategy for Your Business

A recent study shows that 69% of customers who visit your website or page are likely to abandon their cart or order if their favourite or chosen item is out of stock. This plays a crucial role in sales and customer loyalty towards your brand.

To avoid this situation, consider adopting push and pull supply chain strategies. These strategies or methods can help you keep the right balance by keeping products ready to dispatch (push) while being flexible to actual orders (pull). If this is done right, you can increase the fulfillment speed, cut costs, and make sure that you never miss a sale.

This blog explains how push and pull supply chains work and how to pick or combine them, and helps you make better inventory choices.

The Push Supply Chain Model: Planning Ahead of Demand

In the push supply chain model, you can plan and make sure that you have inventory prepared on the basis of customer demand predictions. Products can also be manufactured or stocked in advance and then pushed to retailers or distribution centers.

This model is dependent on sales forecasts, seasonal patterns, and market trends. Like a fashion brand can produce its festive wear months before Diwali, etc., as the high demand is expected.

Strategic Methods Behind the Push Supply Chain

To make the push model work efficiently, you must use some smart supply chain optimisation strategies to plan and produce more inventory in advance. Here are some key strategic methods behind the push supply chain.

• Forecasting demand: Historical sales data, seasonal spikes, and market trends are generally analysed to predict future demand. Accurate demand forecasting is the basis of a successful push model.
• Fixed production schedules: Manufacturing runs are pre-scheduled, which helps you maintain consistent production timelines and ensure stock availability during high demand times.
• Pre-planning the inventory: Products are manufactured or produced in bulk as per the forecast. And inventory is then distributed across warehouses or retail outlets.
• Optimised distribution planning: Logistics and shipping are pre-planned to ensure smooth movement of products from factories to storage or retail shops while reducing the last-minute delays.

Best-Case Scenarios for Push Model Adoption

The push supply chain model is especially effective for industries where demand is predictable or works with seasonal trends. Here are some best-case real-world scenarios for the adoption of the push model:

• FMCG: Brands like HUL or Patanjali distribute higher quantities of products like talcom powders, soaps, and juices in the summer season. So, while predicting demand patterns, it is wise to plan and stock accordingly.
• Fashion Retailers: Before the festive season, platforms like Myntra or Ajio prepare their stock while predicting popular categories and trends in advance. This ensures that they have inventory when orders start coming.
• Electronics and Appliances: Brands like Samsung or LG push stocks of budget laptops, tablets, or home appliances to stores ahead of the school or festive season.

The Pull Supply Chain Model: Inventory Triggered by Demand

The pull model works as per the customers’ demand. This means that the products are made or transported only when an order is placed or a clear demand exists.

This supply chain model helps businesses avoid overstocking, minimise waste, and stay responsive to changing customer preferences. Unlike the push model, which predicts demand and pushes stock into the market, the pull model waits for the demand to ‘pull’ products from the supply chain.

For example, if a customer orders a customised laptop from your brand, the production or assembly starts after the order is confirmed. This makes sure that there is no unnecessary inventory sitting in warehouses while saving cost and space.

Adaptive Approaches in Pull-Based Logistics

The pull model is based on adaptability. Since the products are moved and produced only when there’s a demand, your business can be flexible and ready to respond at any moment. 

Here are some smart ways you can make pull logistics adaptive for your business.

• Demand forecasting with real-time data: Brands use live sales data, social media, and website activities to make better decisions. This helps you restock fast-selling items quickly without over-ordering.
• Just-in-time inventory: This strategy makes sure that raw materials or products come when needed, while reducing the storage costs and wastage. This strategy is generally used in electronics and the automotive industries.
• Decentralised warehousing: You can store inventory closer to demand zones and not in one central hub. This helps you speed up the last-mile delivery when the order is placed.

How Pull Strategies Work in On-Demand Models?

Pull strategies work perfectly for on-demand business models where the supply chain process starts only when your customers place an order. 

Here is how these models work:

• Order and then production: Custom t-shirt brands like Bewkoof or The Souled Store in India start printing only when the customer selects designs and places an order. This keeps things fresh and avoids any leftover stock.
• Technology-driven decisions: On-demand platforms rely on real-time order data, user preferences, and website analytics to automatically start inventory updates, production, and packaging.
• Personalisation: The pull strategy model makes it easy for your business to customise the size, colour, packaging, delivery options, etc. The personalisation is easy in this model, as each order is handled individually.
• Flexible supply network: These models are based on adaptable suppliers and manufacturers who can respond to order volumes quickly.

Shiprocket Cargo’s Role in Hybrid eCommerce Fulfillment

Managing push and pull supply chains can be complex, but with the right logistics partners, it gets a lot easier. This is where Shiprocket Cargo steps in. Whether you are stocking for the festive season in advance or shipping only when an order comes in, Shiprocket Cargo supports both models, and that too on one platform only.

Here are some key features of Shiprocket Cargo that help you meet the demands of hybrid eCommerce.

• Ship bulk orders effortlessly across or within India with multiple trusted cargo partner options.
• Shiprocket Cargo supports B2B & B2C models, all from one dashboard.
• We help with smart inventory distribution by stocking your products in key locations nationwide to reduce last-mile delivery times.
• Our pan-India reach with more than 24,000 pin codes helps you ship confidently to remote areas, metro cities, etc.
• You can also integrate your store or marketplace to automatically import orders without requiring much manual work.
• You can track every parcel or order in real time with a centralised dashboard and instant updates.

Conclusion

In business, the most important things are keeping your customers happy and ensuring the business runs smoothly. Whether you want to plan your stock using a push model, work according to live orders with a pull model, or use both. The right supply chain strategy can help you save time and money.

With Shiprocket Cargo, you don’t have to choose any one way. You can have support for both push and pull models on a single platform.

So, start shipping smarter with Shiprocket Cargo today and take control of your inventory like never before!