Supply-chain integration: implications for mass customization, modularization and postponement strategies

This paper focuses on three interrelated and complementary strategies for managing supply-chain integration: mass customization, postponement and modularization. While the goal of mass customization is to produce customized goods at low costs, postponement strategy focuses on delaying customization as close to the customers as possible. The extent of customization and postponement of products is rooted in modularization of product architecture designs. Product customization can take place either based on a common platform with additional options or based on combining and mixing-and-matching modules to achieve different product characteristics. It also requires a supply-chain strategy to facilitate assembly, logistics and outsourcing decisions. We analyse mass customization, postponement and modularization strategies through a 'modularization characteristic curve', which is shaped by two variables: opportunities for modularization and interface constraints, which represent the aggregate effect from interface compatibility effects, component customization, value inputs and supplier-buyer interdependence. Managerial implications of these strategies are also discussed.