Push Pull Strategy

Topics: Supply chain management, Inventory, Push–pull strategy Pages: 3 (572 words) Published: April 5, 2011
Push strategy

Push is the promotional strategy that involves in taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase. "Taking the product to the customer"

✓ Uncertainty is relatively low

✓ Economies of scale important

✓ Long lead times

✓ Complex supply chain structures

Thus,

✓ Management based on forecasts is appropriate

✓ Focus is on cost minimization

✓ Achieved by effective resource utilization – supply chain optimization

An example of this is a cosmetic product. Women do not request to smell a fragrance they never smelled before; it is simply "pushed" to them, through the advertisement

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Pull strategy

Pull strategy involves in motivating customers to seek out your brand in an active process. "Getting the customer to come to you"

✓ High uncertainty

✓ Simple supply chain structure

✓ Short lead times

Thus

✓ Reacting to realized demand is important

✓ Focus on service level

✓ Flexible and responsive approaches

An example of this is the cellular service company Docomo. Docomo is now promoting about the 3g services and they created a view in the minds of public. Demand is created and its spreading its 3g network all over.

Pull Push Strategy

The products that can be placed here are basically the products with shorter life cycle (perishable goods).Retailers play a very major role to estimate demand for these products for the next day or for some fixed number of days (very short duration) and send the data to the suppliers (distributors, wholesaler and finally producers) who act upon the given data to decide on the volume of shipment whereas the day of shipment is fixed based on the considered interval or it could be every day. It’s a “pull strategy at the production and distribution stages and push at the retail outlets wherein the total...
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