Devoted to Managers and those that seek to improve their management skills

For over a decade manufacturers have been experimenting with ways to get their products into the hands of their customers, keep their margins up, and keeping excessive inventories from developing.  A couple of years ago APICS, Cap Gemini Ernst & Young, and Oracle combined to do a study on this vital subject.

The study surveyed more than 350 supply chain professionals at both large and mid-sized companies across numerous industries including Aerospace, Automotive, Education, High-Tech, Healthcare, Retail and Telecommunications. Key study findings include:  

* 91 percent of respondents using postponement strategies have realized significant improvements in customer satisfaction and inventory costs
* 73 percent of respondents said that increased difficulty to forecast demand is a key driver for implementing a postponement strategy; 60 percent said that customers demanding higher levels of customization is a primary driver
* 56 percent of respondents noted that a lack of understanding of postponement strategies and technology limitations are significant inhibitors
* 50 percent of respondents said that the biggest postponement implementation challenge is aligning the organization  

As businesses keep on working to recognize key areas for cost and operations progress, demand forecasting and order fulfillment processes are being re-thought and postponement strategies are becoming increasingly accepted.  

Bob Collins, CFPIM, CIRM, APICS President has this to say about it, “Although postponement is not a new concept, it is a supply chain strategy that is gaining momentum. By pushing the point of product differentiation closer to the customer, postponement can improve customer service levels, reduce inventory costs, and increase top-line revenue."  

The results from this study have shown that the great majority of companies that have executed postponement as a strategy have seen a tremendous increase in customer satisfaction, costs of inventory, and the ability to make much more accurate forecasting.  

The several things that have discouraged companies from entering into this as a strategy to improve their businesses have been this: Little knowledge of the benefits and related expenses. There is the wrong belief that technology has not been built yet that can implement the program. Last there is the concern the company won’t effectively align itself to the process.  

Don’t let these concerns and thoughts keep you from adding to your company a strategy that will make it much more productive and competitive in the marketplace.