How do 'Push' logistics systems operate?

Push logistics systems operate by forecasting demand and supplying products accordingly. This approach relies on predictions about customer demand, allowing companies to produce and distribute goods ahead of time based on anticipated needs. In a push system, products are made and moved through the supply chain based on these forecasts, which can help in maintaining stock levels and ensuring that products are available in anticipation of customer needs.

This method can be particularly effective in markets where demand is relatively stable and predictable, enabling businesses to optimize production schedules and inventory levels to meet forecasted demand. However, it does require accurate forecasting methods and can lead to some risks, such as overproduction or stockouts if demand fluctuates more than anticipated.

In contrast, systems that focus on responding only to actual demand would be considered a 'pull' logistics approach, which prioritizes real-time demand signals over forecasts. Similarly, assessing resource availability focuses more on the capabilities of the supply chain rather than assumed customer behavior. Lastly, addressing emergency logistical needs pertains more to crisis management rather than the standard operational strategies that define push logistics.