Which logistics system requires actual consumer demand to drive product supply?

The pull system is designed to operate based on actual consumer demand, which directly informs the quantity and timing of product supply. In this system, production and inventory replenishment are driven by the needs of the end-user, rather than predetermined forecasts or schedules. This demand-driven approach minimizes excess inventory and aligns supply directly with customer requirements, leading to more efficient resource use and reduced waste.

By utilizing real-time data and feedback from consumer behavior, the pull system allows for a more responsive logistics operation, adapting quickly to changes in demand. This is particularly advantageous in industries where consumer preferences can shift rapidly, as it enables businesses to deliver the right products at the right time without being burdened by surplus stock.

In contrast, the push system is characterized by producing goods based on sales forecasts and pushing them through the supply chain regardless of current consumer demand. This can lead to inefficiencies such as overproduction or stockouts if demand is misestimated. The inventory and distribution systems are broader logistical methodologies that do not inherently depend on consumer demand to manage product supply in the same direct manner as a pull system does.