Customization of capital goods - Implications for after sales

Petri Suomala, Matti Sievänen, Jari Paranko

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

Customization is nowadays often regarded as a dominant paradigm in many industries. However, the impacts of customization on different business perspectives are still inadequately reported Especially in the case of long product life cycles, after sales is a very significant business domain. In addition, it is even claimed to be a very profitable one. A distinctive feature of after sales business is the high number of low volume product items. The question is, does customization actually produce more those kinds of items,. and thus increase the costs and complexity of operations. A case study is conducted to investigate the implications of customization for the spare part business. In this study, the complete life of one product cycle up to the present is analysed The main focus is on the change in the number of spare part items and the change in inventory value due to customization. A set of explanations is provided to describe the relationship between after sales and customization. Furthermore, a classification of customizations from the after sales point of view is presented in this paper. As a conclusion, the study suggests that the impacts of customization on the number of items and inventory value are minor.

Original languageEnglish
Title of host publicationMOVING INTO MASS CUSTOMIZATION: INFORMATION SYSTEMS AND MANAGEMENT PRINCIPLES
EditorsC. Rautenstrauch, R. Seelmann-Eggebert, K. Turowski
PublisherSpringer-Verlag Berlin Heidelberg
Pages231-248
Number of pages18
ISBN (Print)3-540-43611-1
Publication statusPublished - 2002
MoE publication typeA4 Article in a conference publication
EventWorkshop on Information Systems for Mass Customization - Dubai, United Arab Emirates
Duration: 20 Mar 200123 Mar 2001

Workshop

WorkshopWorkshop on Information Systems for Mass Customization
Abbreviated titleISMC
CountryUnited Arab Emirates
CityDubai
Period20/03/200123/03/2001

Keywords

  • customization
  • after sales
  • product items
  • MASS CUSTOMIZATION

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