Restructuring European supply chains by implementing postponement strategies

More demanding customer needs in terms of quality, variety, delivery (both fast and reliable), and competitive pricing challenge an increasing number of companies to restructure their supply chains. An appealing option is to delay, or postpone, the point of product differentiation, that is deferring the process in which products are transformed according to unique customer specifications. Advances in technology and the gradual removal of barriers to trade in Europe increasingly enable companies to apply postponement pri nciples in their supply chain strategies. In this article, we provide an in -depth analysis of the experiences of four companies in managing the change process associated with implementing such strategies. Operating and organi zational characteristics are identified to assess the attractiveness of pos tponement in their specific particular, an organization's administrative he ritage and the lack of an overall supply chain vision can be major bottlene cks in managing the change process. For a successful implementation of post ponement, a company's management should establish the appropriate mix of st andardization and customization in the supply chain. Differences in the int ernal organization and the external demands for product specificity require different postponement strategies. (C) 1999 Elsevier Science Ltd. All righ ts reserved.