November 23, 2010

postponement strategy

Today I read something interesting in one of my friends' notes, which is about postponement in supply chain. The focuses on CBE as well as PIUSS are on quality management mainly while 'postponement strategy' pays attention to the management of goods. However, they all help to make business better. There are lots of customized requirements with customers so that it is necessary for us to make our products suitable to those requirements in order to gain better earnings. Obviously it is impossible to completely finish products in a short term, in this case we need to start making our products with predicted analysis. Whereas, there is a risk in doing so,that is the products that we build are out of our customers' demand. Once it happened, there is no doubt we will have a great number of stock and thus inevitably loss of profits we will suffer. I have never noticed that postponement could be such a wonderful strategy. For example, HP and IKEA are famous for their customized design and they are definitely successful. I prefer the beautiful looks of HP computers and the convenient way that IKEA does in sell goods. But not until I had read that article I didn't realize that these are strategies in creating business. Time is limited or else I hope to learn more in supply chain.

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