Postponed Manufacturing: An Efficient and Sustainable Strategy to Enhance the Respon-siveness of Build-to-Order Supply Chains?

Background: Currently, the supply chains (SC) of European based car manufac-turers are within a tension triangle characterised by variety of products, pressure to improve efficiency in volatile markets and sustainability. These circumstances force them to adjust their SC. The introduction of the build-to-order (BTO) concept into the automotive SC turned out to be a successful, but also flexibility demanding approach. The postponed manufacturing (PM) ensures this need in theory. How-ever, limited research has been done on this combination and its implication. Purpose: The purpose of this study is to investigate the implications of the PM strategy in build-to-order supply chains (BTOSC) of European based car manufac-turer and suppliers in terms of logistic costs, revenue and CO2 emissions by con-sidering the awareness of BTOSC, flexibility in the manufacturing process, obsta-cles to PM, potential component categories and transport concepts. Design/Methodology/Approach: The study follows a deductive to inductive ap-proach employing a mixed method multiple case study strategy based on semi-structured interviews and questionnaires within a heterogeneous group of 18 pur-posively sampled European based car manufacturers, supplier and logistics ser-vice provider (LSP). Findings: Findings show that European based car manufacturers and suppliers have an incomplete picture of in terms of understanding, market characteristics and motives. PM strategy increases flexibility best in a combination of modularisa-tion and outsourcing. PM strategy is internal limited by the production process as well as the wiring harness and external by the fear of outsourcing. Three suitable component categories have been identified: exterior, radio/sat-navigation system and greenhouse front. PM strategy negatively impacts CO2 emission by extensive use of JIT/JIS delivery. Research Limitations/Implications: Limitations within the basic conditions of time and money are among others the number limited cases, sampling technique, common drawbacks of mixed method research and bias due to bilingualism. Practical Implications: Car manufacturers have to sharpen their awareness of BTOSC, enhance modularisation, outsource modules of non-core competence, use PM to convert BTS to BTS cars and focus on sustainable transport concepts Originality/Value: Previous research focused more on conceptual work on BTOSC or postponement in the automotive industry and less on a combination of both. Thus, the research considers implications of PM strategy in BTOSC by gathering empirical data. Further Research: Further research should consider the validity of the results in emerging markets (e.g. BRIC states), take a closer look on different vehicle clas-ses and draw an overall picture of the environmental impact.Plymouth Business Schoo