RR Donnelley Global Turnkey Solutions gives manufacturers a greater ability to react to market demand. We can strategically postpone the final phase of product completion. Products remain generic until they are needed in the marketplace. Only when customer demand is truly known is the final assembly/kitting, configuration and customization carried out.
A demand-driven approach or “pull” model reduces waste and postpones conversion of inventory into finished product until required by the customer.
Postponing final product configuration can give many competitive advantages including:
- Reducing obsolescence and avoiding re-work. Unwanted products are not built.
- Holding higher value hardware components in a generic state until the last moment. This significantly reduces the cost of stock-holding.
- Reducing complexity at the Contract Equipment Manufacturers which reduces per unit cost.
- Allows you to cost-efficiently take your products into rapidly changing markets in a timely manner.
- Reduction in freight costs.
In the response to meet fluctuating demand and the proliferation of product SKU (Stock Keeping Units), by keeping product in demand-configured states as long as possible, you will benefit from unnecessary inventory.
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| Delayed product configuration |
Demand-driven
i.e. only make what you can sell |
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| Keeping products in generic state |
Eliminates re-work and final good storage and/or costly freight |
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