Comparative Analysis of Push vs. Pull Replenishment PPT

This PPT slide, part of the 21-slide Supply Chain Management (SCM) - Pull Replenishment PowerPoint presentation, presents a comparative overview of "Push" and "Pull" replenishment strategies within supply chain management. It is structured to illustrate the flow of goods and information between various stakeholders, including vendors, factories, warehouses, distributors, and retailers.

In the "Push Replenishment" section, the process is driven by forecasts. Material planners generate forecasts that inform supply planners, who in turn manage the flow of goods from the factory to the warehouse and ultimately to the distributor and retailer. This method relies heavily on pre-determined forecasts, which can lead to overstocking or stockouts if the forecasts are inaccurate. The visual representation indicates that inventory levels are closely tied to these forecasts, highlighting a potential risk in this approach.

Conversely, the "Pull Replenishment" section emphasizes a demand-driven model. Here, orders are triggered based on actual stock levels rather than forecasts. Material planners set defined inventory norms, which dictate when orders should be placed. This method is more responsive to real-time demand, reducing the likelihood of excess inventory. The flow of goods is initiated only when stock levels hit specific thresholds, allowing for a more agile supply chain.

The slide effectively contrasts these 2 approaches, showcasing their respective advantages and challenges. For executives considering supply chain strategies, this framework offers valuable insights into optimizing inventory management and aligning supply chain processes with actual market demand. Understanding these distinctions can guide decision-making in selecting the most appropriate replenishment strategy for their organization.

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Supply Chain Analysis Supply Chain Management Inventory Management Supply Chain Agile