Mass Customization and Global Logistics :: Economics Business Custom Essays

"Mass Customisation is - the customisation and personalisation of products and services - for individual customers at a mass production price. So, what does mass customisation mean for manufacturers and retailers? Simply this, that there’s money to be made and customer satisfaction to be achieved by allowing the buyer to customise his or her own purchases by choosing the size, colour and style from a predetermined, often extensive, list of ‘options’. The ultimate goal is to manufacture on a mass scale, retain or improve the margins associated with mass production, and supply a final product that meets each buyer’s individual desires. Apparel captures a major share of mass-customised products, but the concept stretches far beyond a single industry — to furniture, automobiles, eyeglasses, aeronautics, Barbie dolls, computers and so on. For the manufacturer, mass customisation offers an advantage because it differentiates his product from that of his competitors. It enables him to charge a premium for allowing his customer the ‘privilege’ to specify the final details of his purchase. Moreover, it allows the consumer to ‘buy in’ emotionally to the purchase, thereby reducing the risk that he will return the product he’s purchased — forcing the manufacturer to restock or mark down, or even worse scrap, the item. Success in mass customisation is achieved by producing items quickly; therefore it is critical for the manufacturer to find ways to reduce product development cycles whenever possible. In 2002. Fortune Magazine, and many other worldwide publications, proclaim: "You will have it your way". Mass customisation has come full circle. Allow us to provide our definition of mass customisation. It is the opportunity created by taking an otherwise standard product or service and modifying it to meet the unique requirements and choices of a single individual. Mass customisation provides uniqueness and freedom of choice; perfect fit with multiple options; fair, competitive cost; single-piece production; timeliness; quick-to-market; and, very importantly, the consumer is involved throughout the process. A compelling aspect of mass customisation is that it meets diverse objectives. The customer desires uniqueness; freedom of choice; perfect fit or form; fair, competitive cost. The manufactures want to differentiate from their competitors, to improve profit margins and to reduce risk and returns. Retailers want to sell products at higher profit margins, to provide product variety and choice for the customer and to minimise the inventory risk. Today’s customer for mass customisation tends to address the desires of more affluent people, those, for example, who can afford a custom-built yacht, expensive vehicle or a special item of clothing, but that situation is changing fast. Tomorrow’s opportunity for mass customisation will, in my view, be quite literally everybody for everyone; whether rich or poor, the desire for choice and