ABSTRACT Postponement strategies offer opportunities for firms to achieve effective supply chain management. Postponement strategies could be classified into manufacturing postponement which delays the product differentiation and logistics postponement which delays the distributing process to the confirmed customer orders. In practice, the way to implement manufacturing postponement is more complicated than logistics postponement¡¦s. By employing the logistics postponement strategy, all the firms have to consider is the distribution of finalized products from a centralized inventory to final retailers. Comparing with integrating all the manufacturing activities, logistics postponement strategy could be an effective one for firms to handle the demand uncertainty over the regional markets. By employing the logistics postponement strategy, firms could decrease the cost of inventory and backorder through delaying products distribution to the confirmed customer orders. The connection between real options and postponement is also showed on this point. By employing the real options, decisions could be made when the firms wait and get more information about the market. The value the firms wait to get is also the benefits that logistics postponement strategy could reach by logistics postponement. Thus, the flexibility to decrease the inventory and backorder cost is considered as the management flexibility that real options could evaluate. On the other way, it¡¦s not always free for firms to get such a flexible management ability. The capital that firms have to invest for any change of the supply chain becoming the flexible one could be equal to buying the exercise right in real options. We therefore could construct a model to evaluate the value of logistics postponement strategy via real options and help the firms to judge what would be the proper occasions for logistics postponement to be implemented.

Background: the concept of postponement primarily aims at reducing uncertainty, not to say eliminate it. It is achieved by postponing processes until the required information be- comes available. Although the concept of postponement is not new, its application and connection with e-commerce companies operating on the B2C sector has gained little at- tention. Postponement is presented as having four forms: the full postponement strategy, the logistics postponement strategy, the manufacturing postponement strategy and the full speculation strategy. Although every strategy presents pros and cons, some are more ade- quate given different circumstances. Purpose: the purpose of this study is to explore (1) which factors determine whether e- commerce companies use postponement, and (2) which determinants are responsible for their strategy selection. Method: a qualitative research approach was used, with a multiple-case study as the re- search design. The empirical data was collected through in-depth semi-structured inter- views with four respondents, from four different companies. Conclusion: the authors presented a revised version of the framework they used to con- duct this research. Some determinants, present in the original framework, were removed given the authors’ findings. However, eight of the remaining determinants were kept in the revised version of the framework. The ones concerned were: the volume, the product type, the product range, the value profile, the relative delivery time, the delivery frequency, the uncertainty of demand and the economies of scale. Furthermore, the authors’ findings sug- gested a new determinant should be added to the framework, namely the number of key suppliers. With the help of the framework e-commerce companies can now evaluate their products according to the framework and decide accordingly whether they should apply postponement, and if so, which strategy suits them the best.

Increased product proliferation and global competition are forcing companies within the supply chain to adopt new strategies. Postponement is an effective strategy that allows companies to be agile and cost effective in dealing with the dynamics of global supply chains. Postponement centres around delaying activities in the supply chain until real information about the market is available, which reduces the complexity and uncertainty of dealing with a proliferation of products. A two-echelon divergent supply chain entailing a central production facility and N retailers facing stochastic demand is studied within the inventory-distribution system. A periodic review order-up-to strategy is incorporated at all echelons. Unique to the study, five different systems are created and the effectiveness of several postponement strategies (form and transshipment) under various operational settings are compared. The importance of postponement under an integrated supply chain context and its contribution to various sector implementations are also discussed. Simulation is used to analyze the performance of the systems especially with respect to cost, order lead time and the effectiveness of transshipment policies. The study is unique in determining factors that favour one system implementation over another and distinguishing sector requirements that support postponement. In the study, postponement is found to be an effective strategy in dealing with managing item variety, demand uncertainty and differences in review periods in the two echelon supply chain for different experimental settings.