The New Push-Pull of Global Supply Chain Networks
Over time, the complexity
of global supply chains has
increased, creating a need for
more robust capabilities from
Supply Chain Management
(SCM) solutions. Ongoing
globalization of the world
economy has opened new
sources of supplies and markets
for goods. Components
for the manufacturing of
goods are now often sourced
from multiple countries and
assembled in others, with the finished goods shipped
anywhere in the world. To compete effectively, enterprises
are required to manage, coordinate and optimize multi-
national operations, while simultaneously accounting for
local supply and demand dynamics, and complying with
tariffs and regulations in multiple jurisdictions.
and the location of goods at a very granular level, with
the ultimate goal of cost-effectively meeting consumer
demand and improving the consumer experience. Both
of these objectives require a new approach to managing
supply chain networks.
As a result, many enterprises are shifting from traditional
“push” systems, where the signals for movements of
goods and services originate from forecasted demand,
to comprehensive “push-pull” systems, where decision
makers can use actual demand data to adjust processes
based on forecasted demand. Push-pull-based systems
allow enterprises to optimize their operations by lowering
inventory levels, reducing labor and transportation costs,
avoiding out-of-stock situations and ensuring that the right
products are available at the point of consumption at the
right time.
A push-pull-based system allows manufacturers,
distributors and retailers to manage their supply chain
networks as a whole, based on feedback collected at each
segment, while enabling them to:
t; LOPX;UIF;MPDBUJPO;BOE;TUBUVT;PG;UIFJS;QSPEVDUT;UP;
optimize movement and ensure quality;
t; FGmDJFOUMZ;PQUJNJ[F;USBOTQPSUBUJPO;PG;QSPEVDUT;;
while complying with international and local regulations
and managing carrier rating and load routing to the last
mile;
t; PQUJNJ[F;TUBGmOH;CZ;NBUDIJOH;UIF;BWBJMBCJMJUZ;BOE;TLJMMT;
of employees across a supply chain network to required
operations; and
t; DBQUVSF;;JO;SFBM;UJNF;;EBUB;PO;DPOTVNFS;EFNBOE;BU;UIF;
point of sale and combine it with forecasts to coordinate
the management of personnel, facilities, equipment and
inventory.
Implementing a push-pull-based approach requires a
unique platform of productivity solutions that address
a broad variety of supply chain and market needs.
These solutions must be capable of addressing some
of today’s most critical business challenges, such as
synchronization and optimization of workforce, inventory
and transportation functions. Using the right technologies
and processes, push-pull-based solutions can help
enterprises to increase revenues, reduce costs and create
competitive advantage within their marketplace.
