. Under a postponement strategy, Dell sells directly to consumers via the internet and telephone (i.e., direct order taking from customers). It delays purchasing its own subsystems and components until demand has actually occurred. In fact, Dell holds only a few days’ worth of inventory. This enables Dell to realise lower costs for parts due to its reduced exposure to the pattern of declining components prices and final goods prices, which have characterised the computer industry. In addition, to catch up with the latest technological trends in computer components, computing manufacturers need to offer new product lines very often. If the supply chain is full of conventional products, then either new products have to wait or conventional products are offered at give-away prices. Therefore, postponement also allows Dell to quickly introduce new product lines as they are unencumbered by final goods inventories.