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Wednesday, June 11, 2008

Applying Mass Customization in Supply Chain Management

“In this new frontier, a wealth of variety and customization is available to consumers and businesses through the flexibility and responsiveness of companies practicing this new system of management.” (B.J. Pine, 1993 in Mass Customization)

The manufacturing industry has now evolved from push manufacturing to demand driven manufacturing. Companies such as Toyota for example, have now transformed its manufacturing system from push to a pull manufacturing system in order to be more flexible with customer demands. This concept of delivering products based on customer’s demands is the basis form of mass customization. Mass customization can only be achieved with efficient supply chain management. Through SCM, companies that often realize the massive potential it can deliver through mass customization will emerge as market leaders eventually.

Mass customization will affect the supply chain in terms of inventory handling. By applying mass customization, suppliers will tend to have fewer inventories as Just-in-time concept being introduced and applied into the supply chain. The speed of which the goods being delivered among the supply chain will also increase and sharing of information is done at a rapid pace.

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