‘Postponing’ is not always a bad thing

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The Infosys blog always has great content.  They recently published a blog posting on postponement strategy that is a nice overview, highlighting the drivers and criteria for applying such a strategy.  Drivers include:

  • SKU proliferation
  • Demanding customers and high competition
  • High product variety and customization
  • Increase in total inventory and high obsolescence

Ideal candidates for postponement are products with:

  • Short life cycles
  • High variety / options to customers
  • High value profile
  • Standardized components and modular design

We too are seeing among our customers and prospects (particularly those in the high tech and electronics space) a growing interest and focus on postponement.  A great deal of agility and flexibility can be attained when a company can ship sub-assembly inventory and finish it locally.  But as these new supply chain management strategies evolve, so too does the complexity of the supply chain.  Advance supply chain strategies require the associated advance technology solutions to enable them, and that may limit the number of companies who can successfully apply the practice and harness its benefits. Is postponement a growing topic in your company?

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