Push/Pull Supply Chain Strategies: Which is Better in 2024?

By maintaining a surplus inventory, pharmacies can quickly respond to sudden surges in demand or unforeseen circumstances such as emergencies.

This helps ensure that patients receive the medications they need promptly.

Push strategy allows for

• Better production planning
• Optimizing manufacturing processes
• Reducing costs

It enables pharmacies to take advantage of scale economies and minimize production inefficiencies.

Pharmacies can exercise greater control over the distribution process by proactively shipping products to various locations, ensuring availability at critical points.

This helps streamline the supply chain and ensures that medications reach their intended destinations efficiently.

Storing excess inventory incurs additional costs, including

• Warehousing
• Insurance
• Maintenance

This can impact the overall profitability of pharmacies and may lead to increased product costs for consumers.

Rapid advancements in pharmaceuticals may render products obsolete if demand shifts towards newer alternatives, leading to inventory write-offs.

This can result in financial losses for pharmacies.

A push strategy relies heavily on forecasting accuracy, and any discrepancies may result in overstocking or understocking, leading to inefficiencies.

Without real-time demand visibility, pharmacies may struggle to accurately predict and meet customer needs.

By aligning procurement with actual demand, pharmacies can reduce holding costs and mitigate the risk of excess stock.

This helps improve overall profitability and reduces the potential for wastage.

The pull strategy allows pharmacies to adapt swiftly to market trends, reducing the likelihood of holding outdated products.

By aligning supply with demand, pharmacies can ensure that they are offering the most relevant and in-demand medications to their customers.

By tracking real-time demand signals, pharmacies can streamline their operations and allocate resources more effectively.

This helps minimize waste and improve overall operational efficiency.

Depending solely on customer demand can lead to delays in fulfilling orders, particularly during unexpected spikes in demand.

This can impact patient satisfaction and may require additional efforts to manage and communicate delays effectively.

The pull strategy requires a robust information-sharing system and close collaboration between stakeholders to ensure accurate demand forecasting and seamless inventory replenishment.

It may involve additional coordination efforts and technological infrastructure to effectively manage the supply chain.

Pull strategy might face challenges in meeting sudden changes in demand, as the supply chain might require time to adjust and respond accordingly.

Rapid fluctuations in demand can pose logistical challenges, requiring proactive measures to ensure the timely and efficient delivery of medications.

Automated systems equipped with advanced algorithms can analyze historical data, market trends, and other relevant factors to generate accurate demand forecasts.

This enables pharmacies to

• Optimize inventory levels
• Reduce holding costs
• Minimize the risk of stockouts or overstocking

By leveraging automation, pharmacies can make data-driven decisions and align their supply with actual demand, leading to improved inventory management.

Automation tools provide real-time visibility into the supply chain, offering insights into

• Inventory levels
• Order status
• Demand patterns

This data empowers decision-makers to make informed choices, leading to better resource allocation and improved efficiency.

Real-time data analytics enable pharmacies to identify trends, patterns, and potential bottlenecks, allowing them to proactively address supply chain challenges.

Automated systems facilitate seamless communication and collaboration between different stakeholders in the supply chain, including suppliers, manufacturers, distributors, and pharmacies.

This ensures faster response times, reduced lead times, and improved coordination, resulting in a more efficient and effective supply chain.

Automation tools enable real-time information sharing, allowing stakeholders to make timely decisions and quickly adapt to changes in demand or supply.

Automation streamlines various processes involved in pharmacy supply chain management, such as

• Order processing
• Invoicing
• Payment reconciliation

By eliminating manual tasks and reducing human errors, pharmacies can enhance operational efficiency and reduce administrative burdens.

Automated systems can integrate with existing pharmacy management systems, simplifying workflows and freeing up valuable time for staff to focus on more critical tasks.