Order customization is a manufacturing approach where products are created according to specific customer requirements after an order has been placed. It's a key feature of make-to-order systems.
Understanding Order Customization
Order customization, also known as make-to-order (MTO) customization, allows customers to specify unique preferences and features for a product. This contrasts with make-to-stock (MTS) manufacturing, where products are mass-produced based on anticipated demand.
Key Aspects of Order Customization:
- Customer-Driven Design: The customer's specifications drive the entire production process.
- Delayed Production: Production only begins after an order is received, minimizing the risk of unsold inventory.
- Unique Products: Order customization often results in products tailored precisely to the customer's needs, potentially offering features not available in standard models.
Benefits of Order Customization:
- Reduced Inventory Costs: Manufacturing only occurs when a customer order is in hand.
- Increased Customer Satisfaction: Provides customers with products that meet their exact specifications.
- Competitive Advantage: Offers a personalized experience that differentiates a business from competitors offering only standardized products.
Examples of Order Customization:
- Custom-built computers: Customers select components like the processor, RAM, and storage to create a tailored PC.
- Made-to-measure clothing: Garments are created based on a customer's specific measurements and fabric choices.
- Custom-configured industrial equipment: Equipment is designed and manufactured to meet the unique needs of a specific industrial application.
Challenges of Order Customization:
- Longer Lead Times: Production cannot begin until the order is received, resulting in potentially longer delivery times for the customer.
- Increased Complexity: Managing customized orders requires efficient processes and communication between the customer and manufacturer.
- Higher Costs: Customization can increase production costs due to smaller production runs and specialized materials.
