Anda di halaman 1dari 11

Post-Graduate Programme in Management

(PGPM: 2013-2015)
Term: IV (Jun- Sep, 2014)

Management Development Institute - Gurgaon
Supply Chain Management



Case 09
Postponment Strategies
ID Group 9 Name
1 13P202 Khyatesh Chavan
2 13P224 Rahul Anand
3 13P235 Saurabh Dixit
4 13P236 Bhaumik Shah
5 13P240 Omkar Tungare
6 13P241 Dhaval Thacker
SCM
Case Presentation
Presentation Date: 29/07/2014
WHAT IS POSTPONEMENT STRATEGY?



Delayed decision making
about a product
Gaining information
about customer demand
by waiting to customize a
product for a particular
market or customer
At the point of
postponement a
standardized module
starts to acquire
customer/ market
specified characteristics
Based on two major principles of Demand
Forecasting-
The accuracy of the forecast demand
decreases with an increase in the time
horizon
Demand projections for a product group
are generally more accurate than
projections for individual products
The standard module is built-to-forecast and the finished product is built to a better forecast or even built-to-order
Benefits of Postponement Strategy




Better forecast about the end product
demand
Ability to quickly respond to the
demand signals
Lowered inventory cost due to risk
pooling
Avoiding mismatch between orders
and inventory on hand
Procurement
of raw
materials
Manufacturing
of component
parts
Assembly Packaging Distribution
Spectrum of Postponement Opportunity
Better Demand
Forecasting
Organisations Under Study
General Motors



Need and opportunities for postponement strategies in Automobile industry

Modular System of Components
Individually customized vehicles have forecast variability
New models come out every year with new capabilities
High inventory holding cost of Finished Vehicle
Postponement
strategies at
GM
ECU
Post-sale
accessorization
Customization
of Cars



Postponement strategies at General Motors
ECU

Systems in a car have a
CPU consisting of various
ECUs (30-35 Per Vehicle)

Earlier ECUs were
sourced with pre-loaded
software

ECUs were developed on
a common hardware
platform

Software installation was
postponed towards the
end of Vehicle Assembly

Post-sale accessorization

It provided a $28 billion
Industry
Two major areas-

Entertainment Systems
Offer key differential options in
Vehicles
Plug and play capability
allowed for uploading of
systems at the dealer end

Wheel Set
Specialized wheels on cars
make them more desirable


Customization of Cars

Customers hands on
involvement in building car
of their dreams

A shift from low Cost
Shipping to Speed of
Shipping

Goal of having 60 to 80
percent of the vehicles to be
Made to Order





HONDA



Conventionally Automobile Industries used single platform to design different
models Difficulty in differentiating different models
Three major elements
Programmable robots
Outsourced subassembly
One size fits all conveyor belts


Honda faced problems in the designing a Vehicle for different markets
Example of Honda Accord
Honda developed capability to design flexible chassis whose height width and
length can be modified
A truly robust chassis that could transcend into different models
Honda decided to introduce Flexible Manufacturing System (FMS)

HONDA



3/5 Door Hatchback 4 Door Sedan Stream Minivan
Application of such chassis design allowed Honda to introduce three different
models of Accord Saving nearly 20% of the cost

More local responsiveness by the car makers according to customers in
different markets

Car manufacturers moving towards industry standardization where parts and
components will come from different car manufacturers
Reebok



Reebok a licensed supplier for NBA and NHL
When teams do well more team apparel is demanded - Sales of t-shirts and
jerseys not predictable as its difficult to know which team will be hot, at the
beginning of the season
Demand for player specific jerseys more volatile than for a given team
Meeting customer requirement in short times a major challenge
Blank
Tshirts on
hand before
the event
Printed T-
shirts with
team logo
after the
event
Printing after the event
Stable items at the retailers had expected lead time of 3 to 12 weeks
Hot items expected lead time less than a week
Postponement followed conventionally in the industry
Postponement Strategy At Reebok
1 to 2 weeks for Hot Demand
Team and player
Team only
Blank jersey
Raw
Materials
Contract
Manufactures

Finished Jerseys
Reebok WH

Reebok
DC
Retailer
2- 16 weeks 4 to 8 weeks
3 to12 Weeks 1 Weeks
At a price of $25 for long sleeve t- shirt and $250 for an authentic jersey, the cost of
lost sales is greater than all costs incurred from raw material to final product supply
Manufacturing of blank Jerseys requiring low skilled labor is outsourced

Thank You !!
Management Development Institute - Gurgaon
Supply Chain Management
Post-Graduate Programme in Management
(PGPM: 2013-2015)
Term: IV (Jun- Sep, 2014)

Anda mungkin juga menyukai