Design for Postponement

Today, I would like to draw your attention to one of my favorite articles in the field of supply chain management: Design for Postponement by Swaminathan & Lee (2003). The article identifies three key postponement enablers: First, process standardization, where the initial steps of a process are standardized across a product line and distinct personalities are added at a later stage (e.g., localized manuals or power supply modules of a printer). Second, process resequencing, where more common components are added at the beginning of a process (e.g., cut of clothes), whereas components that create product differentiation are added later (e.g., color of clothes). Finally, component standardization, where key components are standardized to postpone decisions. The article also explains interesting concepts like “vanilla boxes” and “partial postponement”. I believe that postponement should be a key element of a supply chain management curriculum and that this classic article is really helpful to teach it.

Swaminathan, J.M., & Lee, H.L. (2003). Design for Postponement. Handbooks in Operations Research and Management Science, 11 (Supply Chain Management: Design, Coordination and Operation), 199-226 DOI: 10.1016/S0927-0507(03)11005-5

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About Andreas Wieland

Dr. Andreas Wieland is an Associate Professor of Supply Chain Risk Management at the Department of Operations Management, Copenhagen Business School. His current research interests include resilient and socially responsible supply chains.

One response to “Design for Postponement”

  1. Torsten says :

    A related topic is shortening lead times, see a new article by de Treville at the bottom of the webpage below with “cost of lead time calculator”.
    http://acetool.commerce.gov/inventory

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