Postponement tactics refer to strategies taken by businesses to delay the transformation of raw materials or components into a finished product. This approach allows businesses to increase supply chain flexibility while also keeping costs low. Here are some examples of postponement tactics that businesses can use:

1. Spare Part Stocking

Spare part stocking is a postponement tactic that involves storing spare parts for a product in warehouses. This allows businesses to respond quickly to customer demand for a particular product by quickly and easily delivering the parts necessary for its production. This tactic reduces inventory costs and can help businesses avoid any potential supply chain bottlenecks.

2. Lot Sizing

Lot sizing is a tactic that involves producing small batches of a product at a time. This can be done with raw materials or components, and allows businesses to adjust production to meet the changing needs of the market. Lot sizing also reduces inventory costs and can provide businesses with greater control over their supply chain.

3. Just In Time Production

Just in time production is a popular postponement tactic that involves waiting to produce a product until demand exists. This tactic ensures that businesses only produce the exact amount of product needed at a particular time, reducing waste and costs associated with inventory.

4. Point Of Sale Customization

Point of sale customization is a tactic that involves customizing a product at the point of sale. This approach allows businesses to reduce inventory costs while also being able to fulfill customer demand quickly and easily. This tactic also reduces waste and can help businesses stay agile in the face of changing customer demand.

Postponement tactics are an important tool for businesses to reduce costs and increase supply chain flexibility. By utilizing strategies such as spare part stocking, lot sizing, just in time production, and point of sale customization, businesses can take advantage of these tactics and ensure their supply chain remains efficient and cost effective.