The Marketing Challenge for Industrial Companies by Claudio A. Saavedra

Author:Claudio A. Saavedra
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

The speed of new product development

How quickly the new product can be introduced into the market

Manufacturing costs

Logistics and distribution (supply chain) costs

How easy it is to provide maintenance or repair services for the product

The product’s adaptability to different environments and market applications

The standardization of components that are used in several different company products

A product’s functionality and attribute performance during usage

For companies that export their products to different markets, each with different sets of needs, the modularity or integration of their future product is hugely important. The supply management strategy known as ‘postponement’ is incredibly effective at reducing costs and simplifying distribution and commercialization systems. With postponement, a product’s modules aren’t adapted (or, assembled) until the very last stage of its manufacturing and logistics processes; only then is the product adapted to fit different designs and different market applications. This is shown in Fig. 6.18.

Fig. 6.18Postponement is a logistics strategy that significantly reduces the number of components that are initially assembled during the manufacturing process, simplifies and lowers the cost of transport and storage, shortens delivery times, and allows for more precise product-application specialization. This could be a good business strategy for large volume businesses whose markets require several variations of a single product design. Source: SKIPWORTH, H. and HARRISON, A., 2004, Implications of Form Postponement to Manufacturing: a case study, International Journal of Production Research, 42 (10), pp. 2063

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