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Article
Publication date: 8 April 2021

Carolina Reis Gualberto, Lásara Fabrícia Rodrigues and Karine Araújo Ferreira

The purpose of this paper is to develop an approach to evaluate the partial postponement strategy and compare it with postponement and make-to-stock (MTS) strategies in…

Abstract

Purpose

The purpose of this paper is to develop an approach to evaluate the partial postponement strategy and compare it with postponement and make-to-stock (MTS) strategies in the production of table wine in wineries in the state of Minas Gerais (south-eastern Brazil).

Design/methodology/approach

An approach based on discrete event simulation was developed to support decision-making in the wine sector. Simulation models were used to analyse partial postponement, postponement and MTS strategies in wine production. These models were inspired by a typical table wine producer selected from an exploratory study conducted in 12 wineries of Minas Gerais state in Brazil.

Findings

Hybrid strategies, such as partial postponement, favour the advantages of postponement and MTS depending on the portion of semi-finished and finished goods adopted. Wine production characteristics favour postponement and partial postponement with high semi-finished product levels (customer order-driven product) because this allows companies to reduce their inventory of bottles, despite possible increases in lost sales and costs. MTS and partial postponement with high finished product levels (forecast-driven product) present higher costs with bottled wine storage; however, these strategies reduce lost sales and improve agility and reliability in deliveries.

Research limitations/implications

Future research should analyse the production of table wines in other regions of the country and the production of fine wines.

Practical implications

The findings suggest promising perspectives for real-life applications in wineries in Brazil and other countries.

Originality/value

Simulation techniques allow the analysis of production strategies in little-known industries, such as table wine production in Brazil. The approach developed is flexible enough to support decisions and to be adapted to companies’ and markets’ characteristics and to test specific strategies.

Details

International Journal of Wine Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 22 June 2020

Karine Araujo Ferreira, Mylena Letícia Toledo and Lásara Fabrícia Rodrigues

The purpose of this paper is to investigate the application of the postponement strategy by wineries in the state of Minas Gerais (Southeastern Brazil), in order to…

Abstract

Purpose

The purpose of this paper is to investigate the application of the postponement strategy by wineries in the state of Minas Gerais (Southeastern Brazil), in order to identify the types of postponement adopted by these companies, the implementation process and the results obtained after their adoption.

Design/methodology/approach

Twelve exploratory case studies were conducted in wine-producing companies, as well as on-site visits and semi-structured interviews with the managers of the companies surveyed.

Findings

The adoption of form postponement was verified in the companies studied mainly for table wine production, occurring most commonly during the bottling and labeling stages.

Research limitations/implications

This paper analyzed the application of the postponement strategy in Southeast Brazil. Future research should analyze the application of this strategy in other regions of the country and abroad.

Practical implications

The information acquired in this research can contribute to a more adequate practical application of the postponement strategy in a little-known industry sector.

Originality/value

In addition to discussing and verifying the application of the postponement strategy in the wine industry, this research presents information to assist in its implementation, use and consolidation.

Details

The International Journal of Logistics Management, vol. 32 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 22 May 2007

Jeff Hoi Yan Yeung, Willem Selen, Zhou Deming and Zhang Min

This research widens the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain…

Abstract

Purpose

This research widens the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors affects the postponement decision, based on empirical data of Chinese manufacturers in the Pearl River Delta.

Design/methodology/approach

Case analysis, cross‐case comparisons, semi‐structured interviews.

Findings

A cross‐case analysis including study of the downstream structure, downstream relationship, upstream structure, upstream relationship, production method and inventory position produced a postponement classification into five categories: balanced structure without customer information; customer dominated; manufacturer dominated; balanced structure with loose suppliers, and finally virtual supply chain. Based on this classification, two propositions are postulated: when a supply chain has a balanced structure, it should use speculation or production postponement. When the supply chain has an unbalanced structure, it should use purchasing postponement or product development postponement.

Research limitations/implications

This study is exploratory in nature, and more empirical data is needed to further validate the postulated results. Another limitation of the study is in its measurement of postponement, measured in this instance by the production method and inventory positions used. Other characteristics of postponement may be included in future research.

Practical implications

This research has extended the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors affects the postponement decision.

Originality/value

Addresses postponement on the level of the supply chain, rather than company‐level. Addresses how the supply chain structure (balanced/unbalanced) and information sharing/relationship among supply chain actors affect the postponement decision.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 4
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 19 February 2018

Shantanu Shankar Bagchi and Jighyasu Gaur

Firms have increasingly been using postponement as one of the supply chain strategies to respond to rapid changes in customers’ demands. The purpose of this study is to…

Abstract

Purpose

Firms have increasingly been using postponement as one of the supply chain strategies to respond to rapid changes in customers’ demands. The purpose of this study is to identify the optimum level of postponement in the context of two-stage modular manufacturing setting, given the information about trade-off between level of postponement and associated cost is known.

Design/methodology/approach

A critical ratio for the manufacturer to determine whether postponement process is to be continued or not is identified. An algebraic formula for the critical ratio is obtained using which managers can identify the optimal level of postponement using differential calculus.

Findings

The authors have analytically arrived at the solution which gives the manager the optimum level of postponement. Here, they identify the optimum level of postponement in the context of manufacturing, given the trade-off between level of postponement and associated cost. They calculate the expected total profit with different demand scenarios. The parametric analysis in this study shows that if price of the product decreases, then optimal amount of postponement also decreases.

Research limitations/implications

It is important for a manager to identify the optimum level of postponement. In practice, managers usually take this decision on the basis of their judgment and trivial analysis of trade-off between costs and benefits of postponement.

Originality/value

In this study, the authors find an optimum amount of postponement for a firm to find an optimal balance between the cost and the benefit garnered by the postponement process.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 1
Type: Research Article
ISSN: 2398-5364

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Article
Publication date: 1 March 1999

Remko I. van Hoek

Both postponement and outsourcing have been identified as important characteristics of modern and competitive supply chains. The implementation of postponement may require…

Abstract

Both postponement and outsourcing have been identified as important characteristics of modern and competitive supply chains. The implementation of postponement may require extensive (spatial) reconfiguration of the supply chain. Presents findings from interviews with managers of food, electronics, automotive and clothing manufacturers in The Netherlands, Belgium and Germany. Findings reveal that in food supply chains both postponement and outsourcing are applied to a lesser extent than in other industries. Reasons, which refer to the industry‐specific characteristics, are given. Ways for food companies to assure competitiveness are then described on the dimensions of postponement, outsourcing and spatial reconfiguration. A framework is developed to position chains in terms of degree of outsourcing, level of postponement and spatial configuration. The framework can help managers diagnosing and repositioning their organizations, along the dimensions mentioned.

Details

Supply Chain Management: An International Journal, vol. 4 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 1 December 2005

Biao Yang, Ying Yang and Jacob Wijngaard

The purpose of this paper was to investigate the effects of postponement in the context of environmentally sound management.

Abstract

Purpose

The purpose of this paper was to investigate the effects of postponement in the context of environmentally sound management.

Design/methodology/approach

The paper examined the environmental issues for a postponement strategy, with transport as a mediating factor. It also investigated the impact of related practices (e.g. just in time, e‐commerce, vendor managed inventory and factory gate pricing) on transport.

Findings

This paper discussed ways of developing a postponement strategy which could benefit the economy, and which are not limited to taking into consideration the trade‐off between inventory and transport costs. Some thoughts were also presented on possible ways of mitigating the effects of the increase in transport on traffic congestion and pollution levels.

Practical implications

The results of the research contribute to better designing the postponement strategy by placing more emphasis on environmental compatibility while conforming to the end market demand.

Originality/value

The paper emphasises the importance of environmental issues in a postponement strategy. It calls for a need to further understand the trade‐offs between optimal supply chain efficiency and its environmental impact.

Details

The International Journal of Logistics Management, vol. 16 no. 2
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 1 June 1997

Remko van Hoek

Explains that postponed manufacturing applications are a combination of form, time and place postponement in which final processing of generic base products to meet…

Abstract

Explains that postponed manufacturing applications are a combination of form, time and place postponement in which final processing of generic base products to meet customer specifications at central locations in the supply chain is followed by delivery to customers. Postponed manufacturing has been coming to the forefront as an innovative supply chain arrangement in a multitude of industries, including the food industry. As little is known about the implementation of the concept by manufacturers, the feasibility of such operating systems for the food industry warrants analysis. Aims to develop a set of operating characteristics which help determine the viability of postponed manufacturing in a decision model. Demonstrates, via case results of a wine producer, that postponed manufacturing applications can contribute to integral supply chain improvements.

Details

Supply Chain Management: An International Journal, vol. 2 no. 2
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 May 2004

Biao Yang, Neil D. Burns and Chris J. Backhouse

The concept of postponement has a long history of academic literature and practical applications. The recent literature has also well documented that the need for…

Abstract

The concept of postponement has a long history of academic literature and practical applications. The recent literature has also well documented that the need for postponement is driven by today's market and business environment. However, its applications are still not as widespread as expected. Therefore, we are interested in what factors enable or hinder the successful implementation of postponement. After a review on postponement, we propose an integrated framework that will help to develop a set of general ideas on which further work can be based. The practical difficulties associated with moving toward postponement are also included in this framework. The objective is also to understand better the challenges that exist in implementing postponement strategies.

Details

International Journal of Operations & Production Management, vol. 24 no. 5
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 11 April 2016

Hamid Jafari, Anna Nyberg and Per Hilletofth

– The purpose of this paper is to explore how postponement is applied in retailing and how such application is connected to logistics flexibility.

Abstract

Purpose

The purpose of this paper is to explore how postponement is applied in retailing and how such application is connected to logistics flexibility.

Design/methodology/approach

An overview of the established typological classifications of postponement and logistics flexibility is presented followed by empirical results from three case studies of retailers of electronics, furniture, and grocery in Sweden. The study relies on primary qualitative data gathered on the retailers as well as secondary material on some suppliers including logistics providers for further insight.

Findings

The results of the study show that retailers have different practices when it comes to postponement and speculation; however, there is a growing tendency toward postponement among retailers by exploring new means of applying postponement. The results reveal that retailers that have higher application of postponement seem to be more flexible in their logistics operations.

Research limitations/implications

The paper provides direction for further empirical research of the topic, by indicating the application of postponement is not constrained to the point of purchase and could be extended by involving consumers as well as capitalizing on suppliers’ competences and capabilities. Especially, sales services, software, and upgrades could provide opportunity for further expanding the concept.

Originality/value

The paper contributes to the existing literature on logistics practices of postponement and speculation, as well as logistics flexibility by focussing on retail firms in Sweden. Most of the prior scholarly work on postponement and flexibility is on the manufacturing context.

Details

Industrial Management & Data Systems, vol. 116 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 October 2006

Gregory A. Graman and Michael J. Magazine

Postponement (also known as delayed product differentiation) has been shown to be an effective supply chain strategy from an inventory‐reduction, service‐level improvement…

Abstract

Purpose

Postponement (also known as delayed product differentiation) has been shown to be an effective supply chain strategy from an inventory‐reduction, service‐level improvement standpoint. However, there has been relatively little empirical research on identifying the drivers and/or obstacles to a successful implementation of a postponement strategy. This study aims to identify the importance of several managerial issues surrounding the implementation of such a strategy.

Design/methodology/approach

Exploratory depth interviews with company managers were conducted to identify and examine issues that may affect a successful implementation. Borrowing from the concept of triangulation, the findings are integrated with results reported elsewhere in the literature to understand the interrelated aspects of postponement implementation issues. This approach provides insights that would not be had if the results of each study were viewed independently of one another.

Findings

The identification of managerial issues implies that there is more to implementing a partial postponement strategy than the repositioning of inventories prescribed by a mathematical inventory model. Several issues that may influence a postponement implementation are identified and discussed including product integrity, operations scheduling, and organizational readiness.

Research limitations/implications

The depth interview process is an empirical methodology subject to the limitations of judgmental conclusions, interpreter bias and small sample size. The results of this exploratory study provide a more in‐depth understanding of drivers and obstacles to implementing this supply chain strategy. The findings suggest the need for further investigation of the issues surrounding the decision to adopt postponement.

Practical implications

The findings have broad implications for manufacturing managers regarding the impact of adopting a postponement strategy on several aspects of the operations function.

Originality/value

Although principally exploratory in nature, the investigation demonstrates the need for researchers to identify and better understand the managerial issues surrounding an attempt to implement a specific partial postponement strategy.

Details

International Journal of Operations & Production Management, vol. 26 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

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