Pull Style
Pushing and Pull style are two major warehouse management methodologies that warehouse owners use to determine the most efficient system for their operation. While each influences the production of inventory and the supply chain, which influences the pricing of finished goods for customers, each must be carefully analyzed to be implemented and accounted for in a cost effective manner. Pushing and Pull warehouse management is dependent on two major considerations; product demand and product availability. When determining the optimum system, both demand and available inventories are considered. The process involves determining which products are pulled from storage in warehouse that have the highest profit margin and are the most frequently used.
Another key area of influence is the relationship between the warehouse manager and his or her sales force. In a Pushing style, the middle manager establishes the sales maximums based on historical costs and final costs for all products. Pull style, by contrast, involves setting a floor price that is not influenced by previous pricing arrangements with suppliers. This approach is based on the principle that if there are no bargains, no sales, and no money in the bank, the only thing that will remain in the business is employee wages. While employees may prefer not to work for under reputed employers, they also prefer to work for a company where they can increase their salary.
Which one option will be the best for your operation? That answer will be determined through the results of your analyzing the data. Establishing the appropriate Pushing or Pull style for your operation will entail gathering and comparing historical data on your historical expenses and final expenses as well as analyzing the actual cash flow in your company. Once this data is analyzed you can then determine whether or not the approach of Pushing or Pull is the appropriate one for you. Either way, the proper Pushing or Pull style will play a very important role in determining how you will operate your warehousing operations.
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