What is the difference between a push orientation to the value chain and pull orientation?

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written 8.5 years ago by

teamques10 ★ 68k

Introduction:

Push supply chain can be defined as a supply chain that emphasizes distribution of a product to passive customers.

Whereas a pull strategy is related to the just-in-time school of inventory management that minimizes stock on hand, focusing on last-second deliveries. Under these strategies, products enter the supply chain when customer demand justifies it.

Diagram:

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Difference

Push Orientation	Pull Orientation
1. Typical aim is to optimize the production process for cost and efficiency.	1. Typical aim is to enhance product and service quality.
2. It is manufacturer led product development.	2. It is market research driven product development.
3. Poor data integration through limited use of technology.	3. Technology used to achieve research and data integration.
4. Long cycle and response time.	4. Short cycle and response time.
5. Inventory levels are high.	5. Inventory levels are low.
6. Supplier relationships tend to be most critical.	6. Customer relationships tend to be critical.
7. Pricing is a key means for balancing supply and demand.	7. Pricing does not normally impact short-term demand.
8. Productions runs are long in this model.	8. Production runs are short in this model.
9. Lead times are very high in this model.	9. Lead times are low in this model.
10. Most critical technology applications include sales forecasting, inventory management, network optimisation etc.	10. Most critical technology applications include Order fulfilment, e-commerce, advanced scheduling etc.

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