Advantages of Glocal Postponement

In a global economy distant sources can provide low cost high quality components coupled with a staggering cost of ownership for those same components if not managed effectively. Companies often find themselves warehousing depreciating finished goods that are not generating revenue while at the same time housing sub-assemblies that could be. All solutions to resolve this dilemma cut directly into the bottom line. This is where the theory of Glocal Postponement can help. Glocal postponement is an important aspect of supply chain consulting.
Outsourcing your components to more economical global manufacturing sources while at the same time moving final assembly, configuration, test and packaging down the supply chain and closer to the consumers helps to minimize the increasing occurrences of demand volatility.
Glocal Postponement increases profitability of your supply chainsolutions by:

• Reducing inventory overhead
• Not reworking products with low demand into those with high demand
• Substantially reducing excess and obsolete inventory.
• Increased inventory turns
• IP (intellectual property) protection
• Reduced inventory Total Cost (warehousing, rework, freight, obsolescence, cost of capital, etc.)

Ask the supply chain solutions or supply chain consulting companies about this.