Question

How does outsourcing and supply chain IT solutions play a role in implementing a postponement system?

Answer 1

Postponement manufacturing is a new production concept which is targeted to have lesser inventory and effective management of production. In this method, a generic version of the product is provided by the manufacturing service providers which is termed as embryo unit and this version is placed into the inventory or stock. When the organization receives the production order, the embryo is taken out from the inventory, being configured, some tests are performed, the product is packed and finally shipped to the customer.

From above it is quite clear that for having such type of production philosophy, it is very important to have a very effective and strong supply chain network. With the help of supply chain IT solutions, the companies can have a close eye on the inventory of raw material, the production, movement of the product so that there is no issue with the availability of material when the orders are received.

In fact, outsourcing can also be quite helpful as this will enable the company to produce different parts at the different locations and assemble these parts at the assembly units and it will reduce the total production time required and thus the orders can be fulfilled with less time and cost.