Picture it…

We’re cruising down a toll road in Spain towards Alicante.

Toll paid, the barrier lifts, we accelerate.

“Hey, what happened to the side mirror?” Liza says casually.

I pull over. The mirror works, but the cap is MIA, apparently launched somewhere back on the highway.

Two days later at a Volkswagen dealership: yes, they can fix it, just not today. The cap is available but has to be ordered. It will also arrive unpainted. They have to match our exact color, paint it, then install. They tell us to come back later in the week.

Once I got over the initial “joy” of another dealership visit, I realized that I was looking at a good example of a supply chain concept known as postponement.

The approach of postponement keeps a product generic until the last possible moment. The final, differentiating step happens only when real demand or a market-specific trigger shows up.

In our case, that step was prompted by an airborne side-mirror cap. The cap exists; the color is what waits for the trigger.

You find this in apparel (and many other industries) too.

For example, Benetton flipped from “dye-first/knit-later” to “knit-first/dye-later” sequence. Mass-knit undyed greige sweaters, hold them as semi-finished, then add color when sales data says which colors will actually sell.

This is done instead of playing fashion’s favorite guessing game of trying to predict what will sell today, months in advance.

Done well, postponement tightens inventory and lifts profitability without having to sell more.

As a bonus, it also curbs that chronic overdevelopment habit that apparel can’t easily quit.

However, postponement works only if the foundation is solid.

For Benetton, that meant warehouses needed to be configured to hold undyed sweaters by size and style. A robust store-to-HQ data feed to guide color calls is also key. Finally, dyeing is positioned near key markets for quick turns on demand.

For other brands, postponement can be enabled when fabric is pre-positioned and the material direction is set for the season. Approvals are obtained early and dedicated factory capacity can be secured.

These steps can help brands have an chance to capitalize on emerging trends instead of missing out on opportunities.

This is exactly the type of process innovation that brands need to implement, sooner rather than later.

Our story does have a happy ending. The team at Sala Hermanos VW quickly replaced the cap before we drove back to Madrid.

Which is great, because postponement suits parts and products.

Our commute, not so much.