How Universal Power Supply is a Postponement Strategy
Postponement strategy involves deferring the rime for manufacturing and logistics operations (Prataviera et al., 2020). Introducing universal power will enhance flexibility since modifications are input at the assembling’s later stages. Forecasts for specific markets have to be conducted quickly to be more precise. The shortage or excess are balanced by considering transshipment without the need for reconfiguration. Therefore, there would be the achievement of more effective order fulfillment. As a postponement technique, the power supplies would be used in supply centers alongside market-specific features. The initiative was a postponement strategy also because of slowing down allocation decision-making processes by more than two months. When the power distribution is being used, then HP becomes flexible to postpone the printer engine’s specifications by eight weeks during the planning procedure.
The Benefits and Costs of a Universal Power Supply
Analyzing and determining expenses and benefits enables the firm to discover its strengths, weakness, threats, and opportunities. When one utilizes the power supply, there would be a rise in the expenses by 30 dollars for every unit (Simchi-Levi et al., 2021). There would also be an enhancement of the commodity’s design and standardization cost processes for the entire system. There would be better forecasts for every product across the markets with the power supply. Hence, such situations would enhance customer satisfaction and general lead time. The case is so because of manufacturing’s prolonged lead time (Simchi-Levi et al., 2021). On the contrary, though, there would be a decrease in stock-out, transshipment, and inventory hold expenses. Other benefits include reduced lead time, increased profitability, and flexibility in responding to placed orders.
How the Benefits and Costs would be Different from the Product Life Cycle
From the product’s life cycle, there are various benefits and costs. The life cycle has three phases, namely termination, maturity, and ramp-up. However, there are critics regarding the existence of a fourth phase. Hence, the stages should be decline, maturity, growth, and birth. The advantages of having variations in the price range in either stage would significantly help HP because there are high expenses incurred during the initial stages. The maturity stages also enable one to incur high costs. Nonetheless, HP would minimize its inventory rates by considering better forecasting techniques. Due to the life cycle’s end stages having fewer incidences of one losing sales, there are reduced incurred costs, unlike the beginning.
Other Operational Enhancements Besides Universal Power Supply
The first option would recommend to HP is to have the knowledge and skills of enhancing its forecasting abilities. It is normally challenging for subsidiary firms to predict their sales and buying demands accurately. For the company to minimize its overstock and stock out problems with other auxiliary firms, they must consider applying airfreight when the stock out expenses are more than those of airfreight. HP must also consider outsourcing as one of the short-term strategies.
Recommendations regarding the Adoption of Universal Power Supply
Seeing how laser printers’ life cycle is only 18 months and there is uncertainty with VIPER experience and demands, I would suggest implementing the type of power supply. Nonetheless, the measures would require the company to do a manufacturing cost-benefit analysis while using the power supply. One should compare the results from the research with stock-out decrees and inventory holding expenses due to the danger of probable pooling, transshipment expenses, re-configuration costs, and data aggregation. There is a need to assess the recommendations to determine the most relevant initiatives to consider and those they can avoid due to several weaknesses. Furthermore, HP should have the necessary tools, systems, and processes to manage to implement the strategies effectively and successfully. HP would eventually manage to perform well as an organization, increase profits and the number of clients and stakeholders. The continuous consideration of the power supply would contribute towards HP’s ability to have a competitive advantage.
References
Prataviera, L. B., Perotti, S., Melacini, M., & Moretti, E. (2020). Postponement strategies for global downstream supply chains: A conceptual framework. Journal of Business Logistics, 41(2), 94-110.
Simchi-Levi, D., Kaminsky, P., &Simchi-levi, E. (2021). Designing and Managing the Supply Chain. McGraw Hill.
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