6.6 Push versus pull systems
A supply chain is often described in terms of push or pull systems. More accurately, it is the processes which are categorised as pull or push processes. When a supply chain is made up of processes which are mainly push type, the system can be called a push system. But what does it actually mean? Chopra and Meindl (2001) defines a process as push or pull depending on the timing of the execution of the process with respect to the customer demand. In other words, a push process is forecast driven and executed in anticipation of demand, whereas a pull process is demand driven and is initiated in response to real demand.
We have already seen the shortcomings of forecast driven manufacturing and stocking decisions, and seen how the focus is now on more demand based manufacturing and stocking decisions. The trend is for a shift from a push based system to a pull based system, with the obvious result in the reduction in inventory levels and in superfluous manufacturing and purchasing. But is it possible to transform entire supply chains to 'pull' models? We need to look at the concepts a bit more closely.