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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With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
