What does the postponement strategy in supply chain management involve?

The postponement strategy in supply chain management focuses on delaying product customization until closer to the end customer. This approach allows companies to maintain flexibility in their production processes while being responsive to specific customer needs. By postponing customization, businesses can produce standard products in advance and then personalize them based on actual demand or preferences, which can lead to more efficient use of resources and reduced inventory costs.

By waiting to apply specific modifications or adaptations until an order is received, companies can minimize the risk of overstocking items that may not meet customer expectations. This strategy is beneficial as it allows for quicker responses to market changes and individual customer requirements, ultimately increasing customer satisfaction and reducing waste.

The other options refer to strategies that do not align with the core principle of postponement, which is centered around the timing of customization rather than the timing of production or product launch.