The Hp Deskjet Printer Is an Excellent Example of Postponement.

The HP Deskjet printer is an excellent example of postponement. They sell more than half a million units within two years of 1990.

One of their problem is they need sell their product all over the world, but the design itself, have been limited the control of inventory. Before implementing the postponement process, they produced "localized" versions of the Deskjet, including a specific power supply (110- or 220-volt), a power cord designed to fit the outlets in a given country, and a manual written in the right language. The Deskjet printer had been originally designed so that localization was performed at a plant in the USA. Then the localized printers were shipped around the world to various distribution centers (DC), where they remained in inventory until sold. While it only took a few days to get the finished printers to the USA distribution center in California, it took approximately one month for the finished printers destined for Europe and Asia to be shipped and clear customs in their respective countries. After that they figure out the Europe and Asia-Pacific had two issues to face with:

Long lead times and a requirement for extremely high service levels. Each printer designed for a local market overseas had to be completed at the factory in the USA and then took a month to arrive. If demand exceeded supply at the distribution center (DC), there were costly delays in getting the proper localized versions of the printer to the right place. (another $52 dollars US for the air shipment)

And very often a surplus of printers designed for other countries in the very same distribution center. Furthermore, torrid growth in the inkjet printer market meant that factors like price and availability were becoming most important to consumers as quality and reliability distinctions between manufacturers narrowed.

Therefore one they identifying the problem, they analysis the overview of the process.

HP had to find a way to reduce costs (to keep prices down relative...