What is logistic postponement?

logistic postponement refers to when a company delays one or more of the final steps of producing a product until it has been purchased. While doing this, logistic postponement helps companies keep their costs down by saving the last expensive step of customization until the end, after a sale has been completed.

What is the postponement strategy and its types?

Five types of postponements are there: labeling postponement, packaging postponement, assembly postponement, manufacturing postponement and time postponement. Labelling and packaging postponement is related to the level of postponement in deferred packaging, both impacting the place and form of the finished product.

What does postponement warehousing mean?

Warehouse supports postponement strategy by storing goods for longer period of time so that company is able to exploit volatile business environment, which depends on domestic and international developments and demands. Warehouses assist companies in implementing their production and distribution strategies.

What are the benefits of postponement strategy?

Postponement is one of the supply chain strategies now gaining momentum. By push- ing the point of product differentiation closer to the customer, postponement can improve customer service levels, reduce inventory costs, and increase top-line revenue.

What is postponement and speculation?

The notion of postponement and speculation, as applicable to the theory of channel structures, is rooted in the concept of substitutability (Bucklin 1965). The principle of postponement suggests that a channel intermediary can shift the risk of owning goods and inventory to other partners (Bucklin 1965).

What is the function of postponement?

The concept of postponement was first introduced in the marketing literature by Alderson (1950), who notes that postponement can change the differentiation of goods (form, identity and inventory location) to as late a time as possible, and thus, it could be used to promote the efficiency of a marketing system, e.g. by …

What does postponement and modularity means?

The goal of the postponement is to delay the customization as late as possible in the supply chain. Its goal is to produce customized products at low costs. Modularization is a common term that is used in many areas.

What is postpone method?

POSTPONE METHOD. OBJECTION RESPONSE TECHNIQUE IN WHICH THE SALESPERSON ASKS PERMISSION TO ANSWER THE QUESTION AT A LATER TIME.

How do you use postponement?

postpone something to something They have agreed to postpone repayment of the loan to a future unspecified date….

1. Ruth wrote at once, asking Maria to postpone her visit.
2. The event has been postponed indefinitely due to lack of interest.
3. The game has been postponed from Wednesday night to Friday night.

What is modularization in supply chain?

Modular supply chain management is a method of working with suppliers to deliver products in a shorter time frame. With the complexity and speed of manufacturing increasing, modular supply chain management allows suppliers to create complete components quickly.

What does postponement mean?

1 : to put off to a later time : defer. 2a : to place later (as in a sentence) than the normal position in English postpone an adjective. b : to place later in order of precedence, preference, or importance. Other Words from postpone Synonyms Choose the Right Synonym More Example Sentences Learn More About postpone.

What is postponement in supply chain management?

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. Click to see full answer. Similarly, what is a postponement strategy?

Can medical supplies manufacturers select postpone as Supply Chain Strategy?

Therefore, medical supplies manufacturer cannot select postponement as their supply chain strategy any more than a grocer can postpone delivering their cereal.

What is the application of postponement strategies?

The application of postponement strategies is increasing in the practice of international business. Final processing or manufacturing activities are moving either upstream from national operations or downstream from global production plants.

What are the different types of product postponements?

Five types of postponements are there: labeling postponement, packaging postponement, assembly postponement, manufacturing postponement and time postponement. Labelling and packaging postponement is related to the level of postponement in deferred packaging, both impacting the place and form of the finished product.