GlocalTMSupply chain - Postponement: Cut Overheads, Boost Productivity

In a global economy distant sources can provide low cost high quality components coupled with a staggering cost of ownership for those same components if not managed effectively. Companies often find themselves warehousing depreciating finished goods that are not generating revenue while at the same time housing sub-assemblies that could be. All solutions to resolve this dilemma cut directly into the bottom line. This is where Extron’s demand-driven supply chain model Glocal TM Postponement can help.

Outsourcing your components to more economical global manufacturing sources while at the same time moving final assembly, configuration, test and packaging down the supply chain and closer to the consumers helps to minimize the increasing occurrences of demand volatility.

GlocalTMSupply Chain Postponement Services increases profitability by:

• Reducing inventory overhead
• Not reworking products with low demand into those with high demand
• Substantially reducing excess and obsolete inventory.
• Increased inventory turns
• IP (intellectual property) protection
• Reduced inventory Total Cost (warehousing, rework, freight, obsolescence, cost of capital, etc.)

Extron’s GlocalTM Postponement model provides the highest inventory turns in the industry. This is achieved by closing the time gap between supply and demand and not only does Extron’s GlocalTM Postponement model reduce inventory total cost of ownership it also increases our customers’ ability to flexibly respond to changing market demands. Unified bills of materials can be leveraged into multiple new products to service multiple customers. The result is that orders that used to take weeks to fulfill are now shipped in days, if not hours. This innovative concept connects global sources and markets in a way that finally makes sense.

Whether your company is a start-up a multinational or somewhere in between, Extron can respond to your supply chain needs with an infrastructure and culture built for speed, flexibility and partnership.