Reconfiguring Variety, Profitability, and Postponement for Product Customization with Global Supply Chains

Martin Bonev (), Anna Myrodia () and Lars Hvam ()
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Martin Bonev: Technical University of Denmark
Anna Myrodia: Technical University of Denmark
Lars Hvam: Technical University of Denmark

Chapter Chapter 2 in Managing Complexity, 2017, pp 13-26 from Springer

Abstract: Abstract At present, many industrial companies offering high product variety focus on systematically reducing the complexity of their product range and business processes. Related challenges are often named to increase time to market, reduce the effectiveness in product development, and lower process efficiency. For manufacturers with global supply chains, additional uncertainties arise in defining the right manufacturing strategy with respect to production location and postponement. To better understand related managerial implications, this chapter discusses a case study of a global manufacturer providing customized industrial applications. In particular, the study investigates the relationships between product variant profitability and manufacturing strategy relative to postponement and location. The results indicate that an improved configuration of these factors through substitution and supply chain redesign significantly increases the overall product portfolio profitability.

Keywords: Product customization; Supply chain complexity; Variant profitability; Postponement; Substitution (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-29058-4_2

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DOI: 10.1007/978-3-319-29058-4_2

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