Postponement strategies enable companies to design products that are customized and assembled quickly and inexpensively once actual customer demand is known - as opposed to building products in bulk and storing them in warehouses until demand increases. By holding inventory closer to customers, companies can transition from a "push" oriented supply chain to a "pull" or demand-driven supply chain, resulting in improved order fill rates, wider product offerings and increased top line revenue.

As organizations continue to identify areas for cost and operations improvements, demand forecasting and order fulfillment processes are being re-examined and postponement strategies are becoming increasingly popular. "Although postponement is not a new concept, it is a supply chain strategy that is gaining momentum," said Bob Collins, CFPIM, CIRM, APICS President. "By pushing the point of product differentiation closer to the customer, postponement can improve customer service levels, reduce inventory costs, and increase top-line revenue."

The study surveyed more than 350 supply chain professionals at both large and mid-sized companies across numerous industries including Aerospace, Automotive, Education, High-Tech, Healthcare, Retail and Telecommunications. Key study findings include:

* 91 percent of respondents using postponement strategies have realized significant improvements in customer satisfaction and inventory costs
* 73 percent of respondents said that increased difficulty to forecast demand is a key driver for implementing a postponement strategy; 60 percent said that customers demanding higher levels of customization is a primary driver
* 56 percent of respondents noted that a lack of understanding of postponement strategies and technology limitations are significant inhibitors
* 50 percent of respondents said that the biggest postponement implementation challenge is aligning the organization

"Postponement is an adaptive supply chain strategy that enables companies to improve responsiveness to shifting customer demand and we believe it can significantly increase the value delivered by supply chains," said Paul Matthews, vice president and Supply Chain Leader for the Americas at Cap Gemini Ernst & Young.

Study findings are being announced today in conjunction with the "Profit from Postponement" panel at the 2003 APICS International Conference & Exposition in Las Vegas, Nevada. To obtain a full copy of the "The Adaptive Supply Chain: Postponement for Profitability" study, and learn how Oracle's business applications and Cap Gemini Ernst & Young's consulting services can help companies develop successful postponement strategies, please visit: /go/?&Src=2165873&Act=5.

About Cap Gemini Ernst & Young
The Cap Gemini Ernst & Young Group is one of the world's largest providers of Consulting, Technology and Outsourcing services. The company helps businesses implement growth strategies and leverage technology. The organization employs approximately 50,000 people worldwide and reported 2002 global revenues of 7.047 billion euros. More information about individual service lines, offices and research is available at www.cgey.com

About APICS
APICS-The Educational Society for Resource Management provides lifelong learning for lifetime success through its certification programs, training tools, and networking opportunities. The society supports nearly 60,000 members in 20,000 manufacturing and service industries worldwide. To learn more about the APICS community, visit www.apics.org.

About Oracle Corporation
Oracle is the world's largest software company. For more information about Oracle visit our website at .

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