Push Systems Definition
In logistics and supply chain management, a push system is a type of inventory management system where products are manufactured or stored in anticipation of customer demand. The idea behind a push system is to ‘push’ products through the supply chain from the manufacturing stage all the way to the retail stage, without waiting for customer orders. This type of system is often used in fast-moving consumer goods (FMCG) businesses, where product demand is relatively predictable and consistent.
There are several advantages to using a push system. First, it can help to ensure that products are available when customers want them, which can improve customer satisfaction. Second, it can help to reduce inventory costs by reducing the need to keep large amounts of finished goods on hand. Finally, because production plans are based on anticipated demand rather than actual customer orders, manufacturers can often achieve higher levels of efficiency and productivity.
Push systems do have some disadvantages, however. One challenge is that they can be difficult to implement in businesses with highly variable or unpredictable demand. Another issue is that if demand changes unexpectedly, companies may end up with excess inventory that they cannot sell. In addition, because production plans are set in advance, manufacturers may have difficulty responding quickly to sudden changes in customer demand.
Overall, push systems can be beneficial for businesses with predictable product demand. By manufacturing or storing products in anticipation of customer need, companies can improve customer satisfaction and reduce inventory costs. However, businesses should be aware of the
