This term describes a manufacturing strategy in which subassemblies or components are produced prior to receipt of customer orders and only assembled to produce the finished item upon receipt of a customer order. The concept facilitates ‘late customisation’ which allows for a wide range of products to be offered to customers based on different combinations of components. This allows for the minimisation of inventory of finished goods, shorter lead times and maximum customer choice. See also Agility and Supply Chain.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
