Postponement
Postponement is a business strategy that maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment. An example of this strategy is Dell Computers' build-to-order online store.
Among the earliest reference to the concept was in a paper by Zinn and Bowersox in the Journal of Business Logistics. They highlighted five types: Labelling, Packaging, Assembly, Manufacturing and Time postponements.
''''Postponement in SCM '
Postponement is a concept in supply chain management where the manufacturer produces a generic product which can be modified at the later stages when the final hand over to the customer happens. Take for example of a umbrella manufacturer who does not know what will be the final demand of umbrellas of blue color. So to tackle this he manufactures all the umbrellas of white colors and later dye them when finally the rainy season comes and color demand pictures gets clearer. This way not only he saves himself from the lost sales and less customer satisfaction but also this way he can maintain a low buffer for each color stock as he is free to use all the white umbrellas to dye them in any of the colors.
[edit] References
- Friedman, Thomas (2006). The World is Flat. Farrar, Straus, Giroux. p. 593. doi:x. ISBN 0-374-29279-5.
Marty Wilson
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