Push supply chain |
Pull supply chain |
Long lead times |
Shorter manufacturing lead time |
High transport costs |
Reduced transportation cost |
Complex distribution networks |
Reduced inventory |
Dependency on economies of scale |
Dependency on economies of scope |
Lengthy response to customer demand |
Quick response to customer demand |
Challenging management of demand uncertainty |
Easier management of demand uncertainty |
High level of required inventory |
Reduction in required inventory |
Manufacturig far away from point of use |
Manufacturing closer to point of use |
Using intermediaries in the global supply chains |
Supply chain disintermediation |
Supply chain disruptions-broken machines, regional turmoil, or shipping delays |
Hedge against disruptions |