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Influence of value chain redesign to variety/cost balance in consumer goods industry

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  • Peter Fatur
  • Klemen Kavcic

Abstract

The growing customers' requirements for an extended variety of products with no price premium charged are changing the competitive situation in many industries. Form postponement as one of the basic mass customisation approaches proves to be an adequate answer to the cost issues the companies are dealing with when extending variety of their products. This paper presents a research investigating the drivers of different models of form postponement. The study results indicate a relationship between a selected model of form postponement and either cost reduction or increase of external variety (i.e. level of product variety as perceived by the customers). Not every form postponement model results in equal effect to total supply chain cost reduction and increase in variety. Thus, selecting an appropriate model needs to be dealt with at a strategic managerial level.

Suggested Citation

  • Peter Fatur & Klemen Kavcic, 2012. "Influence of value chain redesign to variety/cost balance in consumer goods industry," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 6(2), pages 109-122.
    • Handle: RePEc:ids:ijbsre:v:6:y:2012:i:2:p:109-122
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