The Postponement Technique

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The Postponement Technique

This is a relatively new technique where you push non-necessary or non-urgent process to a later moment in time. This postponement of the process is purposely done, normally with the aim of saving inventory.
Let me explain this with the help of an example of Asian Paints. They postponed the final manufacturing and add the colours at the dealer or shop.
So the paints are provided with just a base colour and various shades. As per the local customer requirements, the colours are mixed at the retail shop.
Hence there is no inventory of colours in the company nor at the dealers end. They just need to maintain the inventory of the base colour and shades which is quite easy, time saving, cost saving and most important space saving.
The postponement of the last colouring process helped in material management and inventory saving while also being able to provide the colours the local market or customer wishes.



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