Due to increasing consumer demand variability and uncertainty resulting in an increased
demand for capacity-flexibility and thus reduction of inventories, the ‘push/pull’ view of supply chains is gaining more interest (Figure 6). This view aims at eliminating as much stock
as possible in the supply chain and focuses on the extent to which customer orders penetrate
or may penetrate the logistics system. By eliminating stock at the retailer and wholesaler,
they are risking less by having the wrong products in stock. So when a customer arrives and
demands a product, the retailer will order the product at the processor, resulting in a delivery
lead time. For example, think of buying a car that is manufactured according to the customer’s
expectations (with or without sunroof, radio and so on). This type of customization is now
also used in food supply chains; where is inventory kept, what stages in the supply chain are
so flexible that they can first order and then deliver the product; the starting point is not at the
individual consumer, but at the retailer. Due to product proliferation, shelf space has decreased
enormously in retail outlets. This results in a request for frequent deliveries and short lead
times. Some products are packed in customer specific packaging materials; this packing process
can be done at the wholesaler, processor or producer. The less handling in the supply chain,
the lower the costs and quality losses. The idea is to minimize inventory levels in the supply
chain. If the producer keeps stock, the processor keeps stock and the retailer keeps stock, this
results in a long product throughput time, high costs and possible quality decay. By eliminating
as much inventory as possible in the supply chain, costs are minimized, quality is optimized and
service can be maximized since the right product is delivered in the right quality and quantity,
at the right time, at the right place.