Evaluation of Product Customization Strategies through Modularization and Postponement

A review of the research literature shows that the number of studies looking at the impact of contextual factors on company choices concerning customization strategy is still limited, especially in relation to the Italian context. This paper aims at investigating the relationships existing between postponement and modularization practices actually implemented by Italian companies and contextual factors mainly linked to product features. A multi-case study research strategy was adopted and statistical techniques applied for data analysis. Starting from a number of monitored variables, two main factors were identified (product/process customization and product/process complexity) and four customization strategies differing in terms of supply chain structure were analyzed (rigid, flexible, postponed and modularized). The expected behaviour was confirmed in most of the cases analyzed. Nevertheless, three main categories of constraints were identified, which may lead to some exception compared to the prevailing approach: delivery lead time issues; contractual obligations; technical and process related factors.