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Logistics, Push


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

In push logistics; manufacturers push goods into the supply chain, i.e. goods are made to stock rather than to order.  For example, prominent UK-based retailer Marks & Spencer decided to switch sourcing of garments from the UK to Asia to secure cost savings.  They chose to buy a whole season’s worth of each design, which was then shipped to the UK and pushed into the supply chain.  The designs were unpopular and the garments had to be heavily discounted to shift the stock.  This contrasts with the strategy adopted by Zara, another prominent Spanish retailer, which pushes a week’s stock into stores and replenishes the stock only if the designs sell well - a mixed strategy.  See also Logistics, Pull.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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