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Postponement has been discussed by numerous scholars and researchers from different perspectives since 1950s when Alderson [3] observed that products tend to differentiate when they near the time of purchase in order to reduce marketing costs. He named this concept the principle of postponement. Postponement , also known as late customization or delayed product differentiation, refers to delaying some product differentiation processes in a supply chain as late as possible until the supply chain is cost effective (Garg and Lee [43]). It gives rise to economies of scale and scope through product and process standardization and customization, respectively. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves. This is a preview of subscription content, access via your institution. Buying optionsChapter EUR 29.95 Price includes VAT (Singapore)
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Corresponding authorCorrespondence to T.C. Edwin Cheng . Rights and permissionsReprints and Permissions Copyright information© 2010 Springer Science+Business Media, LLC About this chapterCite this chapterCheng, T.E., Li, J., Wan, C.J., Wang, S. (2010). Introduction. In: Postponement Strategies in Supply Chain Management. International Series in Operations Research & Management Science, vol 143. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-5837-2_1 What is the principle of postponement or delayed differentiation?Delayed differentiation or Postponement is a concept in supply chain management where the manufacturing process starts by making a generic or family product that is later differentiated into a specific end-product.
Why postponement considered the key to mass customization?Postponement requires process modularity, and it moves the customer order decoupling point downstream in the value added material flow. It contributes the mass customization by increasing both the leanness and agility.
What is the principle of postponement?As already stated, the principle of postponement requires that changes in form and identity occur at the latest possible point in the marketing flow; and changes in inventory location occur at the latest possible point in time.
What is the relationship between mass customization and delayed differentiation?Benefits of Mass Customization
Mass customization enables manufacturers to delay the step of product differentiation until the final phase of manufacturing. Rather than the manufacturer deciding on the features that make the product unique, mass customization allows the consumer to make these decisions.
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