Mass Customization and Global Logistics :: Economics Business Custom Essays

Mass Customisation is - the customisation and personalisation ofproducts and services - for individual customers at a book productionprice.So, what does big bucks customisation mean for manufacturers and retailers?Simply this, that theres money to be made and customer satisfactionto be achieved by allowing the buyer to customise his or her ownpurchases by choosing the size, colour and style from a predetermined,often extensive, tend of options. The ultimate goal is tomanufacture on a mass scale, retain or improve the margins associatedwith mass production, and supply a final product that meets to each onebuyers individual desires.Apparel captures a major share of mass-customised products, but theconcept stretches far beyond a single industry to furniture,automobiles, eyeglasses, aeronautics, Barbie dolls, computers and soon.For the manufacturer, mass customisation offers an advantage becauseit differentiates his product from that of his competitors. It enableshim to charge a pre mium for allowing his customer the privilege tospecify the final details of his purchase. Moreover, it allows theconsumer to buy in emotionally to the purchase, thereby reducing therisk that he will return the product hes purchased forcing themanufacturer to restock or mark down, or even worsened scrap, the occurrence.Success in mass customisation is achieved by producing items quicklytherefore it is critical for the manufacturer to find ways to cut backproduct development cycles whenever possible.In 2002. prospect Magazine, and many other worldwide publications,proclaim You will have it your way. Mass customisation has comefull circle.Allow us to provide our definition of mass customisation. It is theopportunity created by taking an otherwise standard product or serviceand modifying it to meet the unique requirements and prime(a)s of asingle individual. Mass customisation provides uniqueness and licenseof choice perfect fit with multiple options fair, competitive costsingle-p iece production timeliness quick-to-market and, veryimportantly, the consumer is involved throughout the process.A compelling aspect of mass customisation is that it meets diverseobjectives. The customer desires uniqueness freedom of choiceperfect fit or form fair, competitive cost. The manufactures want todifferentiate from their competitors, to improve profit margins and toreduce risk and returns. Retailers want to sell products at higherprofit margins, to provide product variety and choice for the customerand to minimise the inventory risk.Todays customer for mass customisation tends to address the desiresof more affluent people, those, for example, who can afford acustom-built yacht, expensive vehicle or a special item of clothing,but that situation is changing fast. Tomorrows opportunity for masscustomisation will, in my view, be quite literally everybody foreveryone whether rich or poor, the desire for choice and