Postponement is the supply chain strategy that delays final product customization until a customer order is received.
The idea is to make and stock a generic or semi-finished product, then complete the differentiating step—such as assembly, labeling, packaging, coloring, or configuration—when demand is clearer. This reduces the risk of forecasting the wrong combinations of features, colors, or destinations. Dell’s build-to-order computer model is a frequently cited example.
The concept has deep roots in marketing and logistics theory. Wroe Alderson discussed postponing product differentiation in 1950, while Walter Zinn and Donald Bowersox described five forms in 1988: labeling, packaging, assembly, manufacturing, and time postponement. Delayed differentiation is a closely related term.
A common mix-up is treating postponement as identical to mass customization. Mass customization is the broader ability to offer individualized products efficiently; postponement is one method that can make that model economical. Lean manufacturing may reduce waste, but it does not specifically mean delaying customization.