Push and Pull strategy in Supply Chain Management

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Usually, the supply chain management process starts from the manufacturing unit to the end user. The decision about making the products distributing over various channels and selling as retail can be determined. The major difference between a push strategy and pull strategy in supply chain management is setting customer as the source of demand and projections for future.

Both Pull strategies and Pull strategies work in the case of Supply Chain Management. The major steps involved in supply chain management are as follows. The first step in the production will be starting from raw materials. In second step these raw materials are converted into products by the manufacturer. In the next step the products will be distributed to the distributor. Then the product will either be stored or sold through retailer. In the last step the product reaches the customer.

If push strategies are involved in the supply chain management process the demand which is projected will be entering inside the process. In this kind of supply chain, the companies will be having the idea of what will be expected by the customer. By knowing about this the production can be controlled and meet several needs at the same time is possible. Sudden demand can be met by stocking products in advance in such kind of supply chain management.

In the case of pull strategies being implemented in supply chain management inventory is kept just in time to minimize the stocking of products. One of the advantages of such strategy is that there will not be any additional inventory that may not sell. The disadvantage of this kind of inventory keeping is that when there is demand for the product comes there will not be any products and if the customers are not ready to wait there will be fear of losing them.

In actual scenario, there will be both push and pull based strategies involved in the supply chain management.

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