Essay Sample on Supply Chain Planning: Push vs. Pull Systems

Introduction

Supply chains are being planned centered on when a commodity is manufactured, distributed, and availed to customers. This furthermore based on two approaches, namely pull and push systems. A push system refers to when manufacturing is centered on long term clients' forecasts while a pull system denotes to when consumer demands propel the whole process of production (Hunt, 2019). Comprehending their advantages and disadvantages is essential in helping a firm determine which method works best for its operational. Therefore, this discussion aims to deliberate the merits and demerits of a pull and push system.

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It is essential to put the idea these systems into a practical. First, assume you ran a restaurant where you sell pizzas. For simplicity, the critical process involves, assure clients their order would be procured by purchasing ingredients, the production that is cooking, and ultimately, delivering through serving them. Now assume, buying part takes two hours, cooking thirty minutes, and serving an additional four minutes. While utilizing a pull system, in your restaurant, it restricts purchasing ingredients before a client gives an order. Therefore, such a client would be served with fresh, right quality foods. This would reduce inventory and give the restaurant owner the flexibility of efficiently managing a pull system. However, think about the occurrence in an instance where eight clients visited the restaurant at 8 minutes interval and ordered the same food. Will you repeat the same whole procedure eight times? I know this does not sound desirable and efficient.

Whereas the pull system has numerous advantages, for instance, reduced inventory levels, decreased carrying expenditures, and increased service levels as shown in the example above, it also has some disadvantages. It is prone to breakdown, particularly when customer demands changes such as growing rapidly (Hunt, 2019). Also, it is hard to enjoy economies of scale since distribution and production are centered on customer demand. Thus, only what is ordered is produced.

Conversely, a push system is propelled by customer demand projections (Hunt, 2019). Therefore, utilizing the same example, it would require you always be ready in advance centered on the number of clients anticipated to order pizzas. This would give you enough time to buy ingredients and prepare orders pizzas in advance. Thus, unlike in a pull system, a push system is advantageous since it saves you time since when clients arrive, it consumes less time to order and serve them with pizzas (Hunt, 2019). Nevertheless, if the number of customers buying the pizzas does not match the projected figure, this leads to inventory wastage. This is one of the disadvantages of a push system due to an inaccurate forecast (Hunt, 2019). It would, in turn, result in additional expenses of storing pizza and other ingredients to avoid spoiling before selling them. Thus, unlike in pull systems, inventory expenses in a push system are higher (Hunt, 2019).

Conclusion

The pizza example shows the disadvantages linked with both pull and push systems. However, in reality, most enterprises use both methods. Therefore, they enjoy their advantages while reducing their disadvantages in their operations.

References

Hunt, J. (2019). Push System Vs. Pull System Inventory Control. Retrieved 24 August 2019, from https://smallbusiness.chron.com/push-system-vs-pull-system-inventory-control-12650.html