Journal article

Postponement strategy from a supply chain perspective: cases from China

Hoi Yan Yeung J, Selen W, Deming Z, Min Z ...see all

International Journal of Physical Distribution & Logistics Management, vol. 37, issue 4 (2007) pp. 331-356

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Abstract

This research widens the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors affects the postponement decision, based on empirical data of Chinese manufacturers in the Pearl River Delta. Case analysis, cross-case comparisons, semi-structured interviews. A cross-case analysis including study of the downstream structure, downstream relationship, upstream structure, upstream relationship, production method and inventory position produced a postponement classification into five categories: balanced structure without customer information; customer dominated; manufacturer dominated; balanced structure with loose suppliers, and finally virtual supply chain. Based on this classification, two propositions are postulated: when a supply chain has a balanced structure, it should use speculation or production postponement. When the supply chain has an unbalanced structure, it should use purchasing postponement or product development postponement.

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Authors

  • Jeff Hoi Yan Yeung

  • Willem Selen

  • Zhou Deming

  • Zhang Min

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