The benefit of manufacturing postponement in consumer electronics distribution and retailing
msra
摘要
Consumer electronics retailers need to balance the demand for high product variety and short delivery times with the need to keep shop inventories on an acceptable level. Postpon- ing the creation of product variants to the shop is an attractive solution to the problem. However, careful evaluation is required to balance the savings in shops with additional ef- forts in product development and the complexity of maintaining additional supply chain con- cepts. The case company is a manufacturer of consumer electronics with over 1200 dedicated re- tail outlets worldwide. We first interviewed case company management and retailers in dif- ferent countries. Next, we simulated the complete supply chain, including component sourc- ing, assembly, warehousing, distribution and retailing. In the simulations, we evaluated dif- ferent points of product differentiation along with the corresponding supply chain concept. Results indicate that shop inventory is necessary for high-volume, low-variety products. Manufacturing postponement seems most beneficial when: 1) Customers require a delivery time that is too short to enable ship to order from a central location 2) Product value is high enough to justify additional effort in retail outlets. 3) Product variety is mediocre - not too low and not too high. 4) The retail outlet has low sales volumes. The simulations revealed a potential for inventory savings of 40-80% (average 60%) in retail outlets. Based on simula- tion results, the case company is now implementing a new delivery concept for high- volume, low-variety products. The intended delivery concept should be considered in prod- uct development when deciding the product architecture.
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关键词
consumer electronics,case study.,discrete-event simulation,manufacturing postponement,retail
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