The decoupling point method is linked with material flow pipeline. Still, to better supply chain, materials flow needs to be aligned with information flow within the chain.
According to Christopher ( 1992) the supply chain currently fight for competitiveness based on raising consumer requirements not companies. Postponement is about delaying operations in the supply chain till real changes in the marketplace are on hand. It is now a supply chain strategy impacting new thinking around product &, process design including supply chain management
Decoupling point (DP). this is also called order penetration point. It is a level where contingency order tie in to real consumer orders in the supply chain, and has bearing on fit between the product and market, process and stock types.
Benefits of decoupling through postponement:
- Better response to customer requirements resulting to customer loyalty: During the waiting time, vital market request is open and utilized across the chain, matching supply chain strategies with customer needs. The farther upstream the market place order data penetrates the more changes in the supply chain.
Using this concept in the textile industry leads to Benetton ordering and weaving undyed yarn while waiting for the actual consumer requirements availabity. The real information on demand from every location is known during the delay period.
B. Yang and N. Burns
Spin or Purchase Yarn Spin or Purchase Yarn
Dye yarn Manufacturing Garment parts
Finish Yarn DP Join Parts
Manufacturing garment Parts Dye Garment