Impact of postponement on transportation: An environmental perspective

Abstract

Purpose – The purpose of this paper was to investigate the effects of postponement in the context of environmentally sound management. Design/methodology/approach – The paper examined the environmental issues for a postponement strategy, with transport as a mediating factor. It also investigated the impact of related practices (e.g. just in time, e-commerce, vendor managed inventory and factory gate pricing) on transport. Findings – This paper discussed ways of developing a postponement strategy which could benefit the economy, and which are not limited to taking into consideration the trade-off between inventory and transport costs. Some thoughts were also presented on possible ways of mitigating the effects of the increase in transport on traffic congestion and pollution levels. Practical implications – The results of the research contribute to better designing the postponement strategy by placing more emphasis on environmental compatibility while conforming to the end market demand. Originality/value – The paper emphasises the importance of environmental issues in a postponement strategy. It calls for a need to further understand the trade-offs between optimal supply chain efficiency and its environmental impact.