flexibility, speed of response and dependability

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Product flexibility
switching from one product to another
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Volume flexibility
changing the output level to meet changes in demand
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Delivery flexibility
changing the time and volume of customers deliveries
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Mass customisation
offering individually tailored goods and services to customers eg nike allowing people to customise their own shoes
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Collaborative customisation
the needs of the customer are understood and followed as part of the manufacturing process
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Adaptive customisation
customers want the product to perform in different ways on different occasions. technology allows them to customise their product on their own.
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Transparent customisation
customers specific needs are predictable or can be guessed easily
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Cosmetic customisation
customers use a product the same way and differ in only how they want it presented, the packaging changes for different customers.
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Factors needed for mass customisation
a market where customers value variety and individuality - they have to be willing to pay premium prices, quick responsiveness to market changes
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Advantages of mass customisation
cost reductions, higher revenue, greater customer loyalty, competitive advantage
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Disadvantages of mass customisation
needs expensive technology, greater expenses in terms of machinery and training etc, problems with rejected products
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How to improve speed of response and dependability
effective up to date technology system, flexible workforce, close relationships with suppliers.
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What influences the choice of suppliers?
prices, payment terms eg trade credit?, quality, reliability - does it arrive on time?, flexibility - can they respond to changes in demand?
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What can effective supply chain management lead to?
lower costs, higher quality, greater speed of response
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Traditional viking approach - supply chain management
'volume is king' - buying resources in large amounts to benefit from economies of scale
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Modern approach - supply chain management
buying smaller amounts from a wider range of suppliers, creates competition in the chain which causes prices to fall
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Porters value chain and suppliers
gives a cost advantage and diferentiation
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Other cards in this set

Card 2

Front

Volume flexibility

Back

changing the output level to meet changes in demand

Card 3

Front

Delivery flexibility

Back

Preview of the front of card 3

Card 4

Front

Mass customisation

Back

Preview of the front of card 4

Card 5

Front

Collaborative customisation

Back

Preview of the front of card 5
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