Questions to address: how do supply chain managers keep the supply chain system flexible? What are the key concepts of lean launch and postponement? How do Burberry and Benetton make use of lean launch concepts in their business models, to gain competitive advantages? What happens if the timing of the launch is wrong? sufficiently well trained on the new product, and adequate promotion to consumers and to the trade should be ready as well. Figure 15.2 illustrates two other firms that have successfully implemented lean launch systems. FIGURE 15.2 Lean Launch: Two Examples Traditionally, computer vendors built and tested systems, then sent them to resellers who maintained inventory for a stocking period of about six to eight weeks. At the time of sale to the customer, the system is opened and modified to the customer's requirement. By contrast, Dell Computers pioneered the use of a lean launch method, employing flexible manufacturing suppliers when needed for production, based on actual customer orders; in fact, Dell maintains an inventory stock of only one day's worth of component parts. By assembling to order, there is no finished inventory in the channel to manage. Since Dell revolutionized lean launch in the computer industry, others such as Compaq and Hewlett-Packard have also moved toward a build-to-order model with the intent of minimizing finished goods inventory. an react instantly to demand by producing only the styles, colors, and sizes needed. Using computer-aided design and morit facturing (CAD/CAM) techniques, Benetton has reduced the amount of time from garment design to manufacture to less than a day: clothing designed in-house is fed into computerized garment cutting and knitting machines. Benetton also illustrates the principle of postponement in its dyeing process. Garments are knitted using un-dyed yarn, and the colors are applied only after seasonal color preferences are made available from EDI linkages. This minimizes stockouts of popular colors and also the likelihood of unsold stock of unpopular colors. Benetton also is part of a joint venture with a service forwarding and customs procedures, further reducing lead times to its foreign markets. Source: D. J. Bowersox, T. Stank, and P. Doughenty (1999). "Lean Launch: Managing Product Introduction Risk Through Response- Rased Logistics," Journul of Troduct Lreosation Matagemat 16, 557-568. .

1. Questions to address: how do supply chain managers keep the supply chain system flexible?
What are the key concepts of lean launch and postponement? How do Burberry and Benetton
make use of lean launch concepts in their business models, to gain competitive advantages?
What happens if the timing of the launch is wrong?
sufficiently well trained on the new product, and adequate promotion to consumers and to the
trade should be ready as well. Figure 15.2 illustrates two other firms that have successfully
implemented lean launch systems. FIGURE 15.2 Lean Launch: Two Examples Traditionally,
computer vendors built and tested systems, then sent them to resellers who maintained inventory
for a stocking period of about six to eight weeks. At the time of sale to the customer, the system
is opened and modified to the customer's requirement. By contrast, Dell Computers pioneered
the use of a lean launch method, employing flexible manufacturing suppliers when needed for
production, based on actual customer orders; in fact, Dell maintains an inventory stock of only
one day's worth of component parts. By assembling to order, there is no finished inventory in the
channel to manage. Since Dell revolutionized lean launch in the computer industry, others such
as Compaq and Hewlett-Packard have also moved toward a build-to-order model with the intent
of minimizing finished goods inventory. an react instantly to demand by producing only the
styles, colors, and sizes needed. Using computer-aided design and morit facturing (CAD/CAM)
techniques, Benetton has reduced the amount of time from garment design to manufacture to less
than a day: clothing designed in-house is fed into computerized garment cutting and knitting
machines. Benetton also illustrates the principle of postponement in its dyeing process. Garments
are knitted using un-dyed yarn, and the colors are applied only after seasonal color preferences
are made available from EDI linkages. This minimizes stockouts of popular colors and also the
likelihood of unsold stock of unpopular colors. Benetton also is part of a joint venture with a
service forwarding and customs procedures, further reducing lead times to its foreign markets.
Source: D. J. Bowersox, T. Stank, and P. Doughenty (1999). "Lean Launch: Managing Product
Introduction Risk Through Response- Rased Logistics," Journul of Troduct Lreosation
Matagemat 16, 557-568.