Push and pull system: how to adapt them to automated picking in your warehouse

Automating the processes of a warehouse is a decision we make with the objective of improving their efficiency and reducing costs. This involves different areas that we automate or not depending on the needs of logistics and the levels of automation already in place.

One of the most important processes is picking, which consists of selecting products for shipment to customers. There are two main systems to automate this process: the push system and the pull system, differentiated mainly by the type of production.

What is the push system?

The push system is one in which production is carried out according to expected demand. In other words, products are manufactured before customers order or buy them. 

There is a forecast, so it is a system that is often used in the manufacture of long-life products, such as household appliances or automobiles, where the production time is long and it is required to have an inventory available to meet the demand.

ADVANTAGES OF THE PUSH SYSTEM

Greater control, better planning and less uncertainty. These are the three main advantages of a push system.

By producing ahead of demand, controlling inventory more efficiently and planning production in advance, you can ensure that you always have enough product available to serve your customers.

What is the pull system?

On the other hand, a pull system is based on production based on actual demand. In other words, products are produced when they are requested by customers. For this reason, this system is often used in the manufacture of short-lived products, such as clothing or food, where production time is short and it is not necessary to have inventory on hand to meet demand.

ADVANTAGES OF THE PULL SYSTEM

Greater efficiency and flexibility by eliminating overproduction would be one of the advantages of a pull system, in addition to the lower warehousing costs that on-demand manufacturing entails.

On the other hand, these systems allow a better customization of the product, as its manufacture is linked to the customer's request.

How does the push system work in warehouse picking?

Now that we know the difference between push and pull systems and we know the different phases of automated order picking, we can understand how they work within an automated process.

In the push system, the picking process is carried out according to a previously established production plan. Purchase orders are prepared and placed in the warehouse, ready to be picked by the operators. The operators pick the products according to the production plan, regardless of the actual market demand.

By having a better production planning, the logistics manager or warehouse manager can anticipate the speed required in the automated inbound or outbound transport solutions according to the execution times of the operators.

EXAMPLES OF PUSH SYSTEMS IN WAREHOUSES USING AUTOMATION TECHNOLOGIES

By applying the implementation of some of these technologies and practices, automated warehouse logistics can be adapted to a "push" system in order to improve efficiency and effectiveness in inventory management and production.

  • Demand forecasting systems: Use artificial intelligence and machine learning technologies to predict future demand and adjust production accordingly.
  • RFID systems for automated inventory control: Monitor inventory levels in real time and adjust production to maintain proper levels.
  • Production automation systems: Automate production processes and track inventory levels to avoid overproduction and shortages.
  • Systems integration systems: Integrate warehouse management systems (WMS) and production management systems (MPS) for complete visibility and efficient control of inventory and production.
  • Real-time monitoring and analysis systems: Monitor and analyze data in real time to make informed decisions and optimize logistics efficiency.

How does the pull system work in warehouse picking?

In the pull system, the warehouse is a key element for the management of the supply chain, since there must be great agility between production, transfer, temporary storage, placement in the warehouse and dispatch of the goods. 

In this sense, operators pick products according to demand, and only the products necessary to satisfy it are produced. This allows a more efficient management and thanks to the use of automation technologies, this efficiency can be multiplied by eliminating process times and boosting productivity.

EXAMPLES OF PULL SYSTEMS IN WAREHOUSES USING AUTOMATION TECHNOLOGIES

The following are some examples of automation technologies that can be used in a pull system in warehouses. The selection and implementation depends on the specific needs of each warehouse.

  • Demand-based inventory control systems: Monitor real-time demand and adjust production and shipping accordingly to maintain adequate inventory levels.
  • Supply chain automation systems: Beyond warehouse management systems (WMS) or demand management systems (DRP), production planning systems (ERP) are also integrated for complete visibility and efficient control of demand and production.
  • Order management automation systems: Automate order management and shipment allocation in real time based on demand.
  • Dynamic inventory control systems based on RFID technology: Adjust production in real time based on actual demand to improve efficiency and effectiveness.

Both systems can be enhanced with the implementation of technologies such as the Internet of Things (IoT), artificial intelligence (AI) and machine learning (ML) to optimize decision making and improve efficiency in logistics.

If you would like to receive more information about the solutions offered by Rielec to automate warehouses, you can contact us here.