Mass customizers' use of inventory, planning techniques and channel management

Abstract

Mass customization typologies based on modularity and customer involvement can be used to identify and classify mass customizers. This classification determines the initial choice of process design and determines the competitive capabilities of the manufacturing plant. However, the impact of modularity and customer involvement on the details of the production system have not been adequately addressed. This paper takes a tactical look at the implementation of mass customization by exploring the effects of modularity and customer involvement on the production planning, channel and materials management practices at plants producing mass customized products. This study uses data gathered from a survey of manufacturing plants in the USA. Comparing 126 mass customizers, this study finds that the type of modularity employed plays a major role in the choice of channel integration, inventory and planning techniques for mass customizers. The point of customer involvement in the production cycle does not make a significant difference in the choice of channels or inventory management, but does contribute to the choice of planning systems.