Evaluation of postponement strategy in the production of table wine in Brazil: a discrete event simulation approach

Purpose The purpose of this paper is to develop an approach to evaluate the partial postponement strategy and compare it with postponement and make-to-stock (MTS) strategies in the production of table wine in wineries in the state of Minas Gerais (south-eastern Brazil). Design/methodology/approach An approach based on discrete event simulation was developed to support decision-making in the wine sector. Simulation models were used to analyse partial postponement, postponement and MTS strategies in wine production. These models were inspired by a typical table wine producer selected from an exploratory study conducted in 12 wineries of Minas Gerais state in Brazil. Findings Hybrid strategies, such as partial postponement, favour the advantages of postponement and MTS depending on the portion of semi-finished and finished goods adopted. Wine production characteristics favour postponement and partial postponement with high semi-finished product levels (customer order-driven product) because this allows companies to reduce their inventory of bottles, despite possible increases in lost sales and costs. MTS and partial postponement with high finished product levels (forecast-driven product) present higher costs with bottled wine storage; however, these strategies reduce lost sales and improve agility and reliability in deliveries. Research limitations/implications Future research should analyse the production of table wines in other regions of the country and the production of fine wines. Practical implications The findings suggest promising perspectives for real-life applications in wineries in Brazil and other countries. Originality/value Simulation techniques allow the analysis of production strategies in little-known industries, such as table wine production in Brazil. The approach developed is flexible enough to support decisions and to be adapted to companies’ and markets’ characteristics and to test specific strategies.

Postponement practices in the Brazilian Southeast wine sector

PurposeThe purpose of this paper is to investigate the application of the postponement strategy by wineries in the state of Minas Gerais (Southeastern Brazil), in order to identify the types of postponement adopted by these companies, the implementation process and the results obtained after their adoption.Design/methodology/approachTwelve exploratory case studies were conducted in wine-producing companies, as well as on-site visits and semi-structured interviews with the managers of the companies surveyed.FindingsThe adoption of form postponement was verified in the companies studied mainly for table wine production, occurring most commonly during the bottling and labeling stages.Research limitations/implicationsThis paper analyzed the application of the postponement strategy in Southeast Brazil. Future research should analyze the application of this strategy in other regions of the country and abroad.Practical implicationsThe information acquired in this research can contribute to a more adequate practical application of the postponement strategy in a little-known industry sector.Originality/valueIn addition to discussing and verifying the application of the postponement strategy in the wine industry, this research presents information to assist in its implementation, use and consolidation.

A Process-Oriented Warehouse Postponement Strategy for E-Commerce Order Fulfillment in Warehouses and Distribution Centers in Asia

The retail and logistics industry has been revolutionized by the emerging trend of e- commerce business. End-consumers are able to purchase items from online shops from any corner of the world. However, logistics service providers (LSPs) have been facing fundamental challenges in complying with the ever increasing needs of providing proper supply chain solutions. In view of the increasing concern over the order fulfillment performance of LSPs, this article theoretically and practically extends the conventional supply chain postponement strategy into an order fulfillment strategy, namely Warehouse Postponement Strategy (WPS), which is a process-oriented tactic addressing logistics process postponement. A case example is provided to introduce an intelligent knowledge-based wave put-away decision support system (IKWPS), which practically realizes the concept of warehouse postponement strategy. With IKWPS and the embedded concept of WPS, logistics practitioners are enabled to gain the competitive advantage of “last-mile” delivery through enhancing end customer loyalty.

Postponement adoption in manufacturers of tomato-derived products

Purpose – The purpose of this paper is to investigate the application of postponement strategies in companies that produce tomato-derived products in order to identify the types of postponement adopted by these companies, the implementation process, and the major changes after their adoption. Design/methodology/approach – Three exploratory case studies were carried out in manufacturers of tomato products, where interviews were conducted with general managers in the manufacturing and logistics sectors. Findings – The application of time and form postponement was verified in the companies studied, and the implementation of the postponement strategy led to changes in the productive process of tomato-derived products. These changes involved the movement of the decoupling point and the increase in the make-to-order production, which had positive impacts on the businesses. Research limitations/implications – This paper analyzed the application of postponement in a specific sector of the food industry. Future research must analyze the application of this strategy in other segments of the food industry and other sectors as well. Practical implications – The information acquired in this can contribute to a more adequate application of postponement in a little-known industry sector. Originality/value – In addition to further discussion on the issue and verification of postponement application in food companies, this research presents information to assist the adoption, use, and consolidation of the postponement strategy.