Push vs Pull Inventory Replenishment
Inventory replenishment is a fundamental part of any supply chain process. It helps ensure that products are always available for customers to purchase. The two main methods of replenishing inventory are ‘push’ and ‘pull’.
What is Push Replenishment?
Push replenishment is a ‘predictive’ inventory strategy. It is based on sales forecasts and is used to anticipate customer demand. This method requires the supply chain to ‘push’ the inventory out to the market.
Advantages of Push Replenishment
- More accurate forecasting
- High product availability
- Reduced inventory levels
Disadvantages of Push Replenishment
- Increased costs
- Risk of overstocking
- Risk of stock-outs
What is Pull Replenishment?
Pull replenishment is a ‘reactive’ inventory strategy. It is based on actual customer orders and is used to meet customer demand. This method requires the supply chain to ‘pull’ the inventory from the supplier.
Advantages of Pull Replenishment
- Reduced costs
- Reduced risk of overstocking
- Reduced risk of stock-outs
Disadvantages of Pull Replenishment
- Less accurate forecasting
- Lower product availability
- Higher inventory levels
Both push and pull replenishment are important parts of the supply chain process. While each has its own advantages and disadvantages, it is important to consider both when deciding how to replenish inventory. For more information, please visit: