USAGE OF PUSH/PULL

STRATEGY
Push and Pull Strategy October 2019

Usage of Push and Pull strategy in Domino’s

I. Background theory

Processes in a supply chain are divided into two categories depending on whether
they are executed in response to a customer order (pull) or in anticipation of a
customer order (push). Push and pull boundary separates both the processes. The
diagram depicts the push and pull boundary.

1) Push view of supply chain

A company's supply chain stretches from the factory where its products are made
to the point the products are in customer hands As push view depends on the
speculation of customer demand it tries to push as many products into the market.
In this they take lot of time to react to the changes in the market. Forecast plays
vital role in push view.

2) Pull view of supply chain

In pull process of supply chain demand is real and firms react to demand. It helps
company produce required number of products Under a pull supply chain, actual
customer demand drives the process,Pull system has drawback if there is excess
demand from the customer and company do not have capacity result in loss of
opportunity cost. The lead time in the pull view of supply chain is less.

II. DOMINO’S
When mentioning about Domino’s supply chain is based on a push concept for most of its
operations. It is based on the familiar concept of delaying the customization till the last possible
stage to maximize automation and production. Let’s look into the Push-Pull Frontier with this
illustration of Domino’s Pizza.

Push:-
The ingredients used at Domino’s are come from a singular source. Surprisingly, even the dough
is prepared at one of its Supply Chain centers, while most of the other ingredients are purchased
centrally and stored, in cold storage facilities. Trucks with refrigeration facility are used to then
transport these items to the various stores. Vegetables such as cabbage and lettuce, are cut and
stored and are retrieved whenever the order comes from the outlets. The dough is transported in
calculated portions. Unique options such as the thin crust bread come pre-prepared. Domino’s
also has separate space and a dedicated location for every ingredient and even has separate

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Push and Pull Strategy October 2019

equipment to take care of veg and non-veg variants and the gluten-free variants. Up to this point,
the Supply Chain of Domino’s is very traditional and focuses on pushing its products to the
stores. But from this point, Domino’s is most ingenious with its variations. There are 4 variants
in the bread, 5 different sauces with 4 different customization each, nearly 10 different toppings
and a number of variations with the cheese as well.
Pull:-
Suddenly, the push becomes pull, as a customer is bombarded with the options in front of
him/her. It is fair to assume that Pizzas are plenty customizable. But the amount of effort spent
behind the stores to make these options available to the customer at his doorstep within 30
minutes is stupendous. This thin line, separating the customers’ choices and the standardization
in the operations at the Domino’s Pizza Outlet, is the classic case of Push-Pull Frontier

Difference between push and pull view in supply chain

No Push view Pull view

1. Execution initiate in anticipation of Execution initiate in response to customer
customer order order
2. Demand is uncertain Demand is certain
3. Speculative process Reactive process
4. High complexity Low complexity
5. Focus on resources allocation Focus on responsiveness
6. Long lead time Short lead time
7. Help in supply chain planning Helps in order fulfillment
8. Objective is to minimize the cost Objective is to maximize the service

III. Which situation is the best for each strategy

The push section:
a. Uncertainty is relatively low
b. Economies of scale important
c. Long lead times
d. Complex supply chain structures:
Thus
e. Management based on forecasts is appropriate
f. Focus is on cost minimization
g. Achieved by effective resource utilization – supply chain optimization
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Push and Pull Strategy October 2019

The pull section:

h. High uncertainty
i. Simple supply chain structure
j. Short lead times
Thus
k. Reacting to realized demand is important
l. Focus on service level
m. Flexible and responsive approaches

IV. Push and pull strategy usage requirement

The push section requires:
a. Supply chain planning
b. Long term strategies
The pull section requires:
c. Order fulfillment processes
d. Customer relationship management

Discussion
From the view point of bachelor student, I think with each type of product it needs its own
strategy to develop. Base on its product’s life cycle and other related evidences, push or pull or
hybrid push and pull strategy will be decided by manager. Nowadays, the key element to survive
in economic world is the unique or the difference, which distinguish our products from other
products that have the same function. So pulling customers is the most important ones, but never
forget pushing new and unique products, which define your brand in customers mind.

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