These a limited number of characteristics. Differentiated One

These additional costs can be offset by a number of new benefits or potential cost savings. First, customers are often willing to at least partially pay a premium for personalization. Second, a well-formulated and well-designed mass customization strategy could significantly offset cost overruns through a range of strategic and tactical mechanisms. Two main mechanisms of cost reduction in mass adjustment are delayed product differentiation (shift) and the realization of customer integration economies.This last mechanism has already been described in the previous client code section. The integration economics of customers results from the information and relationships that a manufacturer receives when interacting with individual customers (Piller, Möslein, and Stotko, 2004). The resulting cost savings potential is essentially based on better access to knowledge about the needs and requirements of the customer base (Kotha, 1995, Rangaswamy and Pal, 2003, Squire, Re-public, Brown and Bessant, 2004). as (a) reduced or eliminated need to forecast demand for products, (b) reduced or eliminated inventories of finished products, (c) returns of reduced products, (d) reduced obsolescence or obsolete fashion risks, and (e) ) Avoid sales losses if customers can not find the product in a store that meets their needs, and therefore allocate the purchase budget to another item. The savings of these effects can be enormous. Forrester Research Values ??US Automotive Industry UU You can save up to $ 3,500 per vehicle by switching from your latest manufacturing model to an on-demand manufacturing system. Similarly, the garment industry estimates savings of up to 30% by switching to an on-demand system. Estimates for the apparel industry show that nearly $ 300 billion a year is wasted as a result of bad estimates, high inventory levels, fashion risks, and lost profits as a result of the necessary discounts (Sanders, 2005).The previous concept of delayed product differentiation refers to the distribution of the supply chain in two stages: A standardized part of the product is carried out in the first stage, while the differentiated part of the product in the second stage according to the preference of the customer on behalf expressed Delayed product differentiation shows immediately that most companies offer a product portfolio of families of closely related products that differ in a limited number of characteristics. Differentiated One example of delayed product differentiation in the automotive industry would be to send a standard version of the vehicle (stripped or partially equipped version) to dealers and then allow dealers to install CD players, depending on the specific needs of the customers. / DVD, tailgate, leather or fabric interior, cruise control, etc. Before the point of differentiation, the parts of the product are redesigned, so that as many parts or components of the products for each configuration are common. Cost savings result from the accumulation of risks and the reduction of storage costs. In addition, because the common functional levels of the functionalities are selected by a number of customers, economies of scale can be achieved at the modular level for each module version, resulting in cost savings that are not available in production systems that are dedicated exclusively to personalization. ,

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