Postponement is the delaying of final activities (i.e., assembly, production, packaging, etc.) until the latest possible time. A strategy used to eliminate excess inventory in the form of finished goods which may be packaged in a variety of configurations.

  • This approach can result in reduced costs associated with inventory carrying and obsolescence, as well as improved customer service levels.
  • In addition, postponement can provide a competitive advantage by allowing for more flexible and responsive manufacturing processes.

However, postponement can also lead to increased complexity in the supply chain and higher risks if not managed properly. As such, it is important to carefully consider all potential impacts before implementing postponement strategies.

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Supply Chain Management: Postponement as Supply Chain Strategy
Postponement Strategy in Supply Chain Management

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