Manufacturing Postponement Definition

In supply chain management, manufacturing postponement is the practice of delaying the production and assembly of a product until the last possible moment, before it is needed by the customer.

The goal of manufacturing postponement is to respond quickly to customer demand, while minimizing inventory costs. By postponing production, businesses can avoid having finished goods sitting on shelves waiting to be sold. This allows them to reduce their inventory carrying costs and free up working capital.

Manufacturing postponement can be used in conjunction with other lean manufacturing techniques, such as just-in-time production and Kanban systems. When properly implemented, it can help businesses achieve a high degree of flexibility in their operations.