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What is meant by push & pull strategy in supply chain?

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Question added by Haris Kidwai , Procurement Executive , Yunus Textile Mill
Date Posted: 2013/12/16
Bashar Shahin
by Bashar Shahin , Supply chain consultant , UN - WFP

It is known that PUSH means filling warehouses depending on the full capacity of both production and procurement

And PULL means that clients' orders should control production

 

But many people do not know that most companies want to perform PULL model, But they find themselves eventually operating with PUSH model

 

That is because they are simply do not have the sufficient flexibility and do not share the same database to start or stop production or purchasing in conjunction with changes in orders or in shipments

 

Thus they are exposing lack or flooding of Materials and products in their warehouses

Manoharan Vallamunji Kasinathan Vallamunji
by Manoharan Vallamunji Kasinathan Vallamunji , Purchase Engineer (Supply Chain Management) , ITR MIDDLE EAST

Pull system means supplier suppose to supply as per the customer needs ( What is required, How much is required and when its required with right quality).

Pull system - Inventory controll, low waste, less internal movement, No handling damage, Less space is enough, Good cash flow etc..

 

Push system means supplier supply as their wish or as per their production plan.

Its increase your inventory , more internal movements , more waste, etc

 

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