Push V Pull Strategy free essay sample

The interface between these stages is called the push-pull boundary or decoupling point. Push strategy Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. In dependence of the used medium, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, its not possible for the buyer to interact with. 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 his requirements. Applied to that portion of the supply chain where demand uncertainty is relatively small Production ; 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 levelsExcessive inventories due to the need for large safety stocks less expenditure on advertising than pull strategy [edit] Pull strategy In a marketing pull system the consumer requests the product and pulls it through the delivery channel. We will write a custom essay sample on Push V Pull Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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 ordersPoint of sale (POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement [edit] 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 historical ordering patterns from retailers. It takes longer for a push-based supply chain to respond to changes in demand, which can result in overstocking or bottlenecks and delays (the bullwhip effect), unacceptable service levels and product obsolescence.In a pull-based supply chain, procurement, production and distri bution are demand-driven rather than to forecast. However, a pull strategy does not always require make-to-order production. Toyota Motors Manufacturing is frequently used as an example of pull production, yet do not typically produce to order. They follow the supermarket model where limited inventory is kept on hand and is replenished as it is consumed.