Consumers are expressing increased demand for product customization in the form of features, labeling, color or packaging. What is the impact of this trend on supply chain inventory? What strategies can firms and supply chains use to mitigate this impact?

Today, it seems obvious the obsolescence of the industrial paradigm based on the optimization of processes in the supply chain as if they were specific functions, whose objective was to improve their efficiency and stability. Companies must evolve from this industrial approach based on the internal efficiency of the processes to a paradigm focused on the added value that is given to customers with a global vision of the chain. The factor that catalyzes all these changes is the increase in an increasingly demanding and personalized demand from customers. In addition, global competition allows stimulating this change and forces manufacturers to seek new ways to produce the agreement to the changing and personalized needs of the market.

Explanation:

During the 80s manufacturers used JIT, TQM and other programs to improve production efficiency. Today, when customers request more specialized products and services tailored to meet their demands. There is a growing need to make mass customized products. The manufacturers of mass-produced items are analyzing how these production practices can be modified to increase their flexibility. Customization strategies that emphasize flexibility, low cost, high quality and efficient production of small lots are gaining ground very quickly.

There is a need for the integration of business operations in the supply chain. Develop new products in which they are involved in marketing, research and development, production, logistics and finance. It is important to link suppliers in the product development process and also that of second level suppliers. Finally, the linking of the consumer and the customer is essential.