Planned disruption and unintended consequences: Postponement by strategy vs. intervention in the U.S. beer supply chain

Abstract

Supply chain strategies are used to increase efficiency, save money, or reduce uncertainty and disruption. Disruptions can be unexpected and potentially devastating for supply chains. However, sometimes supply disruptions are built into supply chains using a postponement strategy. When postponement is implemented as a supply chain strategy, it can smooth the flow of goods, provide cost savings, and improve customer experience. When postponement is forced on supply chains via government intervention it can break down the seamless flow of goods and information, causing them to work inefficiently. In this article, we show how intervention through postponement creates unintended consequences that negatively impact beer supply chains and make recommendations to help managers mitigate these consequences. We also address policymakers, who can decrease the likelihood of unintended consequences resulting from regulations they enact—including how to prevent legislating these regulations in the first place.