Rahil

Push strategy

Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. Depending on the medium used, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the buyer to interact. On the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to their requirements.

* Applied to that portion of the supply chain where demand uncertainty is relatively small

* Production and distribution decisions are based on long term forecasts

* Based on past orders received from retailer's warehouse (may lead to Bullwhip effect)

* Inability to meet changing demand patterns

* Large and variable production batches

* Unacceptable service levels

* Excessive inventories due to the need for large safety stocks

* Less expenditure on advertising than pull strategy...

Pull strategy

In a marketing "pull" system, the consumer requests the product and "pulls" it through the delivery channel. An example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when they have been ordered by the customers.

* Applied to that portion of the supply chain where demand uncertainty is high

* Production and distribution are demand driven

* No inventory, response to specific orders

* Point of sale (POS) data comes in handy when shared with supply chain partners

* Decrease in lead time

* Difficult to implement

Supply chains

Main article: Supply chain management

With a push-based supply chain, products are pushed through the channel, from the production side up to the retailer. The manufacturer sets production at a level in accord with...