Application of Postponement: Examples from Industry

In this chapter we report on two case studies of applying postponement strategy in industry. The first case is a study of a Hong Kong based toaster manufacturing company, which has successfully implemented postponement strategy. We present a summary of how postponement strategy was implemented in its supply chain and elaborate on all the benefits arising from the implementation of postponement. We also discuss the implications of postponement for its supply chain. In the second case an empirical analysis by Chiou et al. [28] is introduced. They empirically examine the application of postponement strategy in Taiwanese information technology (IT) firms. First, the four types of form postponements are examined. Second, the factors affecting the adoption of different form postponement strategies are explored. The managerial and practical implications are also discussed.