How do push supply chain strategies operate?

Push supply chain strategies operate by producing items in advance based on forecasted demand rather than waiting for actual customer orders. This proactive approach focuses on anticipating market needs and creating inventory ahead of time, which is then "pushed" through the supply chain to distribution points or retailers. It relies on historical sales data and market trends to estimate what products will be needed and when.

The logic behind this method is that it helps ensure product availability, reducing lead times for the customer and capitalizing on expected demand. However, this strategy can also lead to excess inventory if forecasts are inaccurate or if customer preferences change unexpectedly.

In contrast, other strategies like the pull supply chain focus on responding to actual customer orders, which can reduce the risk of overproduction but may result in longer wait times for customers if inventory isn't available. Relying entirely on technology, while important for managing supply chains, does not define the operational nature of push strategies.