RightChain Deployment | Inventory Deployment Optimization

Supply Chain Speculation vs Postponement

Speculate on deployment?

YES (PUSH)

NO (PULL)

Deployment Speculation

Deployment Postponement

FULL SUPPLY CHAIN SPECULATION (PUSH-PUSH) • Make ahead and deploy ahead • aka “make to stock (MTS)”, “build to inventory (BTI)” • Used by most manufacturers • All Manufacturing & Product Configuration Performed Prior to Order Receipt • Product Positioned as Close as Possible to the Customer • Low unit production cost. High inventory levels. MANUFACTURING POSTPONEMENT (PULL-PUSH) • aka “make to order (MTO)” • Final Manufacturing Performed Downstream in the Supply Chain • Final Manufacturing Delayed Until Customer Order Received (Build-to-Order = BTO) • Manufacturing Positioned Close to Customer Locations • Example: Newspapers

DEPLOYMENT POSTPONEMENT (PUSH-PULL) • Make ahead and deploy late • Direct Distribution of Fully Finalized Products from Central Inventory • Shipping Costs may Increase Due to Smaller Shipments & More Expensive Modes • Example: L.L. Bean FULL SUPPLY CHAIN POSTPONEMENT (PULL-PULL) • Make late and deploy late (centrally) • Manufacturing & Logistics are Order Driven • Some Manufacturing may be Executed in Advance • High unit production and transportation costs. Low inventory levels. • High value, high inventory carrying rate, low weight and cube. • Example: Dell Computer

YES (PUSH)

Manufacturing Speculation

Speculate on manufacturing? NO (PULL)

Postponement

Manufacturing

RightChain™ Incorporated

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