Achieving automotive suppliers’ mass customization through modularity

Abstract

Purpose Previous literature tends to combine postponement and modularity or view them as parallel factors to achieve mass customization (MC) while ignoring the sequence of a firm to design and implement operations and supply chain strategy. Based on a customer-oriented strategy and theories of organizational information processing theory, three-dimensional (3D) concurrent engineering and resource dependency, the purpose of this paper is to propose a sequential model reflecting the sequence of practices as well as an overview picture for a firm to achieve MC. Design/methodology/approach The model links three company antecedents – postponement orientation, operational alignment and information sharing, to three company supply chain practices – product and process modularity and supplier segmentation. These practices, in turn, lead to the company’s MC capabilities. The proposed model is tested with a data set collected from automotive suppliers in China and in the USA. Structural equation modeling is used to analyze the data and test the model. Findings The results suggest that, for suppliers to achieve MC, postponement orientation and operational alignment are vital antecedents. The results also reveal the important responsibility and role of information sharing practices in coordinating suppliers’ modularity practices. Originality/value This research provides three findings that are of value to both academicians and practitioners of supply chain management. First, this study originally proposed and empirically tested that a postponement orientation is an antecedent of product and process modularity and supplier segmentation to achieve MC in the automotive sector, contrary to the traditional view of parallel relationships for both. Second, it developed and verified measures of operational alignment and supplier segmentation for future research use. Third, the vital role of information sharing to coordinate internal and external supply chain practices to achieve MC is empirically supported.

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Linking supplier selection and management strategies with mass customization capability

“…Various authors have reported the effects of different operational strategies and practices on MCC such as modularity (Wang et al , 2014), supply chain integration (Hsuan Mikkola and Skjøtt-Larsen, 2004; Lai et al , 2012), management of demand and supply uncertainties (Liu et al , 2010), supplier lead-time reduction (Tu et al , 2001), internal/external learning and effective implementation of processes (Huang et al , 2008), functional integration (Liu et al , 2012), logistics management (van Hoek, 2000), customization knowledge utilization and business process improvements (Wang et al , 2014), strategic orientation (Wang et al , 2015), absorptive capacity (Zhang et al , 2015), standardization and innovation (Wang et al , 2016), human resource management (Sandrin et al , 2018), individual competencies (Trentin et al , 2019), operational alignment and implementation of postponement (Wu et al , 2019), customer relationship management and organizational culture (Ullah and Narain, 2020a), flexible manufacturing competence and workforce management practices (Ullah and Narain, 2020b) and concluded that to ensure the success of a MC system, organizations should focus on the implementation of practices which could lead to a high level of flexibility and responsiveness.…”

“…Within the past decade, heightened competition and ever-growing demand of customers has posed countless challenges to organizations of all sizes (Matthyssens, 2019), and mass customization (MC) has recently been mentioned as an approach to cope with these challenges (Wu et al , 2019). MC can be defined as a business strategy that aims to fulfill the distinct needs of customers at affordable prices and time (Ullah and Narain, 2020a).…”

Mass customization: the role of consumer preference measurement, manufacturing flexibility and customer participation

“…Manufacturing flexibility is believed to be critical in MC (Nawanir et al, 2020). Based on modular theory, manufacturing flexibility is characterized by the ability to adapt to small-batch and multivariety customized production through modules integration (Wu et al, 2019).…”