Traditional Culture Encyclopedia - Traditional virtues - What are the supply chain management modes?
What are the supply chain management modes?
1. Push supply chain operation mode: The push supply chain operation mode takes the manufacturer as the core, and the products are gradually pushed to customers by dealers after production. Distributors and wholesale retailers are in a relatively passive position, and the degree of integration between enterprises is low. The core of push supply chain operation mode is to meet the demand through make to stock (MTS). Usually, the method of improving safety inventory is adopted to deal with the demand fluctuation, so the inventory of the whole supply chain is high and its response ability to demand changes is poor.
2. Pull supply chain operation mode: The driving force of pull supply chain operation mode comes from the end users. This supply chain operation mode has high integration and rapid information exchange, and can realize customized services according to users' needs, so the inventory in the whole supply chain is low. The core of the pull supply chain operation mode is to respond to the changing market by making to order (MTO) or selling fixed products, and transform uncertain demand into definite demand in advance.
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