Postponement
Postponement moves one or more operations or activities (making, sourcing and delivering) to a later point in the supply chain. When creating a postponement plan, there are two main things to keep in mind:
- Determining how many steps to postpone;
- Determining which steps to postpone.
Postponement allows an organisation to be flexible in developing different product versions to meet changing customer needs, differentiate a product, or modify a demand function. The longer an organisation can keep its materials homogeneous, the more adaptable it will be to shifts in consumer demand.
In addition, an organisation can reduce supply chain costs by keeping undifferentiated inventories. Postponement must consider the nature of the products, the company’s market demands, and any limitations or structures found in the manufacturing and logistical systems. In general, the following circumstances may warrant postponement: inventive goods.
Therefore, competitive advantage is the extent to which an organisation can create a defensible position over its competitors. It results from crucial management choices and consists of qualities that let an organisation stand out from its rivals.
Identifying price, cost, quality, delivery, and flexibility are important competitive capabilities. In addition, time-based competition is an important competitive priority.
Here are some examples of organisations that have effectively adopted competitive advantage techniques:
1. Amazon.
Using advanced logistics and delivery networks, Amazon uses low-cost leadership through economies of scale, extensive product variety, and convenience.
2. Apple.
Apple has good product differentiation through innovative design and user experience, a strong brand identity, customer loyalty, and good vertical integration of hardware and software.
3. Toyota.
Toyota invented lean manufacturing with the Toyota Production System and formed a continuous improvement (Kaizen) culture focused on quality control and reliability.
4. Google.
With a significant emphasis on data analytics and machine learning, Google has expanded into several digital areas and innovates in search algorithms and targeted advertising.