What is Postponement, or delayed differentiation

Is a supply chain strategy where a product is maintained in a generic (Allmän) state for as long as possible. The process of transforming the generic product into a specific end-product is delayed until closer to the consumer. This approach enables the storage of safety stock for a single generic product instead of multiple particular end-products. Postponement reduces the need for excess inventory and minimizes the risk of end-product obsolescence, mainly when demand for specific variations is uncertain. Since the generic product has a lower value compared to the particular end product, less capital is tied up in each stocked unit.