Time is Money: the Cost of Delayed differentiation

Introduction
”Procrastination is the waste of time” and ”time is money”.
Mathematically combining the above quotes we may conclude that procrastination is indeed the waste of money, but in supply chain intelligent and thoughtful procrastination in postponement can create wonders.

(Hoek 2001:161) Describes delayed differentiation or postponement as a concept in supply chain wherein some of the activities are not performed until the customers places the order. (Lee 1998) Explains postponement as the process which delays timings of the crucial processes in which the final products acquire specific functional features and identities.
The basic properties are kept the same but the customization takes place after acquiring the current knowledge of the market, requirements. This is done for the purpose of reducing the risk and uncertainties. There is a distortion and irregularities in the information flow which cannot be speculated. Postponement aims to keep this distortion minimum and thus helps to avoid stock out cost and obsolescence.
Other advantages of postponement
Reduce inventory cost.
Reduce transportation cost.
Reduce risk of obsolescence.
Reduce demand variability.
Improve competitiveness by offering customized products quickly.
Types of postponement (http://www.ifm.eng.cam.ac.uk/mtms/events/documents/Johnny_Wan.pdf,)
Full speculation strategy
manufacturing postponement
logistics postponement
time postponement
full postponement
Other types of strategies ( (Tage Skejtee-larsen 2007)
Product development postponement -Delay critical product development decision
Price postponement-known Delay the pricing decision until customer demand is
Postponement of passage of title -to buyer Delay the transfer of product ownership from seller
Demand postponement -Split demand due to capacity constrain
Other types of Postponement ;( for warehousing) (Ackermann)
Postponement of commitment.
Postponement of passage of title.
Postponement of branding.
Postponement of consumer packing.
Postponement of final assembly.
Postponement of mixture or blending.
Full speculation strategy

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