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

In: Managing Complexity

Author

Listed:
  • Martin Bonev

    (Technical University of Denmark)

  • Anna Myrodia

    (Technical University of Denmark)

  • Lars Hvam

    (Technical University of Denmark)

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.

Suggested Citation

  • Martin Bonev & Anna Myrodia & Lars Hvam, 2017. "Reconfiguring Variety, Profitability, and Postponement for Product Customization with Global Supply Chains," Springer Proceedings in Business and Economics, in: Jocelyn Bellemare & Serge Carrier & Kjeld Nielsen & Frank T. Piller (ed.), Managing Complexity, chapter 0, pages 13-26, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-29058-4_2
    DOI: 10.1007/978-3-319-29058-4_2
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