Risk Management of Mass Customization in Supply Chain...

Risk management of Mass customization in Supply Chain Management Ching-Hua Huang, Cai Wei, Lam Shan Kong, Ching-Hsin Lee, Po-Chun Chen, Faculty of Business, Economics amp; Law, University of Queensland, Australia Key words: Risk management, Supply chain, Mass customization Abstract Companies nowadays have faced critical issues on managing the supply chain system and how to make it work smoothly is the main goal that is willing to pursue. This article is going to identify the risks in supply chain management and take mass customization as the key element to elaborate, and two examples are brought out to emphasize the importance of it. At last, negative impacts addressing the management and some recommendation of avoidance†¦show more content†¦What is mass customization? In the fierce competitive environment where customers expect the products they purchased are unique and customized, and the price should be as low as mass-produced items (Radder amp; Louw 1999). Therefore, more companies realize that a profound change in production procedures and flexibility of structures are needed to meet the challenges. While Mass customization (MC) has provided an opportunity to cope with varied customer needs, such as Dell computer, Daimler smart car, Swatch, IBM, Proctor and Gamble and Hewlett-Packard, leading a successful business practices by accommodating specific customer requirements (Selladurai 2004). Originally, the notion of MC was coined by Stan Davis (1987) in his book â€Å"Future Shock†, which defines MC as a fundamental paradox allowing firms to produce as various goods as possible based on volatile customer needs, but in a cost-effective way. The concept of MC is to integrate flexible production processes with information systems and organizational structures within a supply network, delivering tailored products or services to satisfy the end customer as well as reaching reasonable costs (Frutos amp; Borenstein 2004; Silveira, Borenstein amp; Fogliatto 2000; Yao amp; Liu 2009). In other words, MC is characterized as a strategy to provide customers with what they want, anytime and anywhere with any way, from which companies can gain a competitiveShow MoreRelatedApplying Lean Tools and Techniques to Optimize Supply Chain Processes1139 Words   |  5 PagesTo Optimize Supply Chain Processes Introduction In defining how best to apply lean tools and techniques to the optimization of supply chain processes, the systemic structure of a firms value chain needs to first be taken into account, with each specific sector of the supply chain considered an integral part. 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