Tut 5
Postponement strategies enable companies to design products that are customized and assembled quickly and inexpensively once actual customer demand is known, as opposed to building products in bulk and storing them in warehouses until demand increases.
A study on postponement strategies has been done by Oracle, APICS, and Cap Gemini Ernst & Young. This study has found that postponement strategies have reduced demand uncertainty and improving customer satisfaction. The study also recognizes the following as the top inhibitors to successful postponement strategies implementation:
• Inability to recognize where postponement is most effective
• Inability to quantify benefits
• Belief that technology does not support implementation
The study identifies companies that are in the strongest position to employ successful postponement strategies will have strong support from senior management. They will be using integrated, Web-based enterprise business solutions that facilitate and support collaboration and visibility across the extended supply chain. They will also adopt standardized and automated business processes to support faster response times and real-time intelligence.
Postponement is most effective when companies have implemented strategic sourcing and formal buying strategies, such as vendor-managed inventory (VMI) or consignment, to reduce financial risk, supply variability and lead times. At the heart of postponement is a company's ability to maintain competitive service and delivery performance levels.
Labels: LSCM
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1/31/2007 02:20:00 PM