supply chain postponement

one of the earliest references to the concept was in a paper by zinn and bowersox in the journal of business logistics. he explained that there is a shift of the risk to another partner in the supply chain due to postponement of the owned bunch of goods. the ideal strategy would be to either use speculation or postponement in the distribution channel depending on competition and potential risk savings.

finally, the fifth challenge tells that in order to conduct a solid research plan on postponement one should consider the triangulation model with first step – how postponement is implemented in a global supply chain, second step – where, to what extent and how postponement is applied, third step – benefits of postponement in the customized supply chain. to conclude, the 21st century has enhanced the postponement concept in terms of definition, aspects and strategies. one of the most modern definitions today is the following, suggested by christopher (2005): “postponement refers to the process by which the commitment of a product to its final form or location is delayed for as long as possible”.

ultimately, it’s a strategy that allows a company to deliver a customised product offering at the last possible moment. in essence, the company makes most of the finished good and then waits for the customer to decide upon what should be modified and when. healthy gross profit margins are critical to the success of this order fulfillment strategy as the company is often required to hold the semi-finished product for long periods. the postponement strategy only works if the gross profit margins on the final sale are high enough to compensate for the costs of financing and holding the semi-finished goods.

in the end, the postponement supply chain strategy must have strong vendor partnerships, ones where each vendor is able and willing to respond with critical parts and support in a timely manner. so, what are some of the aspects that must be present in a postponement strategy from the perspective of vendor management? last, but certainly not least, it’s important that the sme has accounted for those time-critical vendor lead times that are needed to move the semi-finished good to a finished good. it is wrong to assume that a postponement strategy only includes manufacturing semi-finished goods and waiting for the final option to be decided upon by the customer. the benefit for any sme is that it is able to run a strategy that meets the unique demands of its customer base, while also reducing the time it takes to deliver those products.

a postponement supply chain strategy is nothing more than an order fulfillment strategy, one that reduces risk by within supply chain management (scm), postponement is a deliberate action to delay final manufacturing or distribution this strategy is called postponement, and if executed well can shorten lead times , reduce inventory, postponement strategy in supply chain management pdf, types of postponement in supply chain, postponement strategy in supply chain examples, benefits of postponement in supply chain. 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.

became the poster child for supply chain efficiency largely thanks to its ‘direct model’, which shifted a make-to-stock postponement is as an operations design principle to mitigate the negative impact of product variety postponement is a strategy that allows businesses to take advantage of the offshore capacity and labor for manufacturing, companies that use postponement strategy, companies that use postponement strategy, packaging postponement example, postponement in supply chain ppt, case study postponement supply chain, ikea postponement strategy, logistics postponement, pros and cons of postponement strategy, zara postponement strategy

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