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ly integrated and agile supply chain. The manufacturer must align pur- chases and deliveries to the most cur- rent demand forecasts. Manufacturers have made great strides in their abilities to design and bring to market com- plex products at affordable prices, but market pressures continue to drive innovation and product customiza- tion. These pressures include:
Customer expectations—One strik- ing result of progress in the capabilities of manufacturers has been the evolu- tion of what customers have come to expect. It’s as if consumers buying high- ly customized products got a taste of what manufacturing can accomplish and they’re no longer willing to settle for mass-produced, generic products. Customers demand more individual- ized products—but at the same speed and value as mass-produced items.
Inventory control—The high cost of inventory represents an important driv- ing factor behind adoption of post- ponement strategies. Maintaining an inventory of multiple variations of a product can be cost-prohibitive. When companies offer hundreds of choices of styles, colors and features, inventory implications become staggering. The short-lived product lifespan also makes maintaining inventory of a particular version risky. No brand manager wants to be stuck with yesterday’s bestseller when the consumer looks to purchase the new and improved version.
Quality control—Although cus- tomers expect highly specialized prod- ucts, they still look for reliable quality and brand continuity. The manufac- turer must ensure a level of consistency among the many variations produced and shipped under its name, even when subcontractors and third-party logistics partners may be involved in completing the product, packing and shipping.
IT Products Support the New Strategy
Modern IT solutions support the shift to postponement strategies. The increased need for product-postpone- ment manufacturing has coincided
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Die Design Software & Flattening Software