What is a primary goal of using postponement in warehousing?

Using postponement in warehousing primarily aims to reduce excess inventory. Postponement is a strategy that involves delaying specific activities in the supply chain to increase flexibility and better meet customer demand without overcommitting resources or stock. By holding off on final assembly, customization, or other processes until customer orders are received, businesses can avoid the pitfalls of producing or stocking too much product that may not be sold, thus minimizing the risk of obsolete or excess inventory.

In this context, excess inventory can create significant holding costs and waste. By using postponement, companies can adapt their inventories based on actual demand rather than forecasts, leading to more efficient inventory management.