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. |