ARTICLE
TITLE van Hoek, Remko I., Vos, Bart, Commandeur, Harry R., "Restructuring European supply chains by implementing postponement strategies", Long Range Planning, Vol. 32, No. 5, Oct 1999, pp. 505-518.
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ABSTRACT More
demanding customer needs in terms of quality, variety, delivery (both fast and reliable),
and competitive pricing challenge an increasing number of companies to restructure their
supply chains. An appealing option is to delay or postpone, the point of product
differentiation, that is deferring the process in which products are transformed according
to unique customer specifications. Advances in technology and the gradual removal of
barriers to trade in Europe increasingly enable companies to apply postponement principles
in their supply chain strategies. An in-depth analysis is provided of the experiences of
four companies in managing the change process associated with implementing such
strategies. Operating and organizational characteristics are identified to assess the
attractiveness of postponement in their specific business settings. It was found that in
particular, an organization's administrative heritage and the lack of an overall supply
chain vision can be major bottlenecks in managing the change process. For a successful
implementation of postponement, a company's management should establish the appropriate
mix of standardization and customization in the supply chain. Differences in the internal
organization and the external demands for product specificity require different
postponement strategies. |