accurately trying to predict the configuration options your customer will order over a 12-month period is tough. with a ‘new normal’ now testing the industry, oems agile enough to respond rapidly to customer demand stand a greater chance of survival compared to those that are not. in simple terms, the ems provider builds a generic version of the product (often referred to as an “embryo” unit) and then places it into stock. dell have long been seen as early adopters of this strategy and arguably transformed the pc market we know today from a “make-to-stock” to a “make-to-order” model.
” while postponement manufacturing is a relatively simple theory, in practice it involves a high degree of collaboration between the oem and ems provider and visibility throughout the supply chain. regular business reviews between the oem and the ems provider are critical when it comes to postponement manufacturing. in addition, they are a particularly useful forum when discussing new products added to the range or when the oem is planning to withdraw an older version from the market. so now we have covered some of the basics, what are the advantages to an oem in working with their ems provider and implementing a postponement manufacturing strategy? however, for those that have researched the benefits of a complete outsourced manufacturing solution, and are now actively looking to focus on the core activities that really matter to their business (design, sales, marketing, customer service,) it can totally transform their business.
in certain industries, however, customers are demanding more options to personalize products to their tastes and needs. with so many variations of final product configuration, a company’s product design and supply chain strategy becomes critical to profitability. designing products for postponement and performing late-stage product completion as close to demand as possible is vital for profitability. for example, a product like a popular mobile phone might have more than 2,500 variations a customer can select as part of the phone and service. a company needs only to forecast, make and move the right amounts of those 200 different components and then, using late-stage product completion, build just enough of the 2,500 various options as customers demand them.
in certain cases, outsourcing late-stage product completion makes a lot of sense, especially if the products are sold, distributed and fulfilled globally. banta claims its additional value for customers comes not only from final configuration and fulfillment activities, but also from its specialization in the local sourcing of class-c products that are needed to complete many final product kits (think power cables and speaker wires that come with your new pc). –there is the ability to focus on innovation and product design for supply. as the relationship between the oem and the service provider matures, with the provider showing proven performance in quality and efficiency, a level of trust develops. not all companies are able to take advantage of postponement strategies and late-stage product completion (food manufacturers, for example). for companies that are seeing customer demand proliferate products and options, we do see the leading companies using postponement strategies and late-stage product completion to respond to the demand more profitably.
what is postponement manufacturing? in simple terms, the ems provider builds a generic version of the product (often within supply chain management (scm), postponement is a deliberate action to delay final manufacturing or distribution of a product until receipt of a customer order. this reduces the incidence of wrong manufacturing or incorrect inventory deployment. designing products for postponement is key, and it means engineering products to be a set of core, companies that use postponement strategy, companies that use postponement strategy, zara postponement strategy, types of postponement in supply chain, form postponement. postponement is a concept in supply chain management where the manufacturer produces a generic product, which can be modified at the later stages before the final transport to the customer.
the key to mass-customizing effectively is postponing the task of differentiating a product for a specific customer until postponement strategypostponement strategy is a concept in supply chain management where the manufacturer produces a generic product, which can be modified at the later stages before the final manufacturing and assembly postponement involves the engineering of a product as a module or platform which can take, geographic postponement, packaging postponement example, pros and cons of postponement strategy, postponement in logistics
When you search for the product postponement, you may look for related areas such as companies that use postponement strategy, zara postponement strategy, types of postponement in supply chain, form postponement, geographic postponement, packaging postponement example, pros and cons of postponement strategy, postponement in logistics. what is postponement in warehousing? what is the principle of postponement? what is a potential benefit of the postponement strategy for the company? what is the difference between postponement and channel assembly?