Role of Mass Customization in Supply Chain Design

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ABSTRACT

Traditional supply chain management utilized traditional media and channels to link firms in linear, inefficient relationships. The advent of electronic commerce over the Internet has facilitated new relationships for connecting with new supply chain partners, thereby significantly increasing the quantity and quality of inter-organizational information flows. These information flows are theoretically evaluated using the principles of information quality dimensions. In addition, a new breed of market makers, or information intermediaries, is defining new functional relationships between the different players. The direct channel between manufacturers (or digital content providers) and consumers is enabling mass-customization, and is influencing the demand forecasting and inventory management functions. Mass customization is discussed in the context of both digital and physical goods, along with an analysis of information quality dimensions. Finally, the impact of these new supply chain information flows on industries and macroeconomic conditions is discussed.