Comparison/Contrast of Two Business Tactics - Essay Example

Increasing competition in the industry has resulted in putting extra pressure on the organizations to come up with different ways and methods of operations in order to create a competitive edge. Owing to the globalization and increasing international operations, focus of most of the organizations have shifted towards the development of cost efficient and responsive supply chain. It is difficult to come up with a supply chain solution which is cost efficient and responsive at the same time. Organizations have come up with different strategies and tactics in order to achieve the supply chain objectives and goals.

Out of all these the two most used strategies are push and pull strategy (Bonney, Zhang, Head, Tien, & Barson, 1999). Push strategy in supply chain is about working on the process in the anticipation that there will be orders from customers. It can be said that under this strategy the products are first manufactured and then efforts are made to sell them. In supply chains which are based on push strategy, procurement, manufacturing, and replenishment cycle is started on the basis of expectations related to the customer orders (Bonney, Zhang, Head, Tien, & Barson, 1999).

The focus of organizations who go for push strategy is to increase the responsiveness of the overall supply chain.