1 / 13

Logistics Challenge of Customisation

This paper explores the logistics challenges associated with increasing product customization in a global market. It delves into the four essential P's of marketing—Product, Processes, Performance, and People—and their implications for supply chain management. Highlights include insights on managing product variety, addressing changing customer expectations, and employing postponement strategies to enhance efficiency and reduce costs. The study reflects on case studies illustrating how companies like HP tackle customization while maintaining service levels and customer satisfaction.

nizana
Télécharger la présentation

Logistics Challenge of Customisation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Logistics Challenge of Customisation Janny Leung Systems Engineering & Engineering Management Department The Chinese University of Hong Kong

  2. The Evolution of Marketing The new 4 P's' Product - the essence of what we offer the customer Processes - system and activities that support provision of the core product or services Performance -do we get it right? Have we live up with our promises? People - interaction with employees: make or break!

  3. Changing Customer Expectations • Shortening product life cycles • Higher service requirements • Global market -- segmentation • Product proliferation • multi-stage, multi-vendor production • global transportation logistics • demand • cost • leadtime Uncertainty!!

  4. Supply Chain Management -- Christopher Tang Product variety is increasing • Crest toothpastehave 35 options (flavors and package sizes) • HP workstationshave 500,000 options (RAM cards, video cards, graphic cards, monitors, disk drives, etc..) • GM cars have 20,000,000 versions (color, interior combinations, drive train configurations, and option choices)

  5. Supply Chain Management -- Christopher Tang Pitfalls of increasing product variety • Demand may not increase -- (Quelch & Kenny, HBR 1994) • total demand spread over more SKUs • reduced product life cycle • Forecasting nightmare • High manufacturing cost • High inventory cost • Poor availability of product to customers • High product support and service costs • “Mark-down” sales at the end of product life

  6. Supply Chain Management -- Christopher Tang Postponement:A Strategy for managing product variety in Global Market • Postponement:Delaying the “point of product differentiation” • Two types of postponement • Logistic postponement: moving customization point to closer to customers • Form postponement: delaying differentiation point by standardizing parts, products and processes

  7. HP公司各種打印機 香港中大-清华第三届供应链管理高层经理研修班 香港 2002年11月

  8. HP – Universal Power Supply • A new network printer for world-wide distribution • 110V and 220V power supply for North American and European markets • Long lead time from engine manufacturing (by Japanese partner) to printer customers • High regional split forecast error ! Hau Lee

  9. 負相關减低波動 負相關 香港中大-清华第三届供应链管理高层经理研修班 香港 2002年11月

  10. FA&T Customization PCA No Delayed Product Differentiation Mono Printer Color Printer FA&T PCA Customization With Delayed Product Differentiation Supply Chain Management -- Christopher Tang Form Postponementat HP DeskJet Printers • Standardization -- Mono/Color Printer Mono Printer Color Printer • Cost -- Additional materials • Benefit -- Lower Inv.. and Higher Service Level

  11. + + 10 10 10 30 = DC A A B B C C 100 100 100 100 100 100 Logistics Postponement:Impact on Distribution System 17

  12. Advantages of Postponement • Lower inventory cost • Improved product availability (better customer service) • Lower burden on forecasting • especially during ramp-up and end-of-life • Lower reconfiguration costs for trans-shipment • Lower obsolescence and write-offs • Higher design, manufacturing/material costs

  13. Logistics Challenges to Automotive Industry? Thank you

More Related