Mass Customisation at TNT Post Pakketservice

8/13/2019 Mass Customisation at TNT Post Pakketservice

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Mass customisation

at TNT postpakketservice

Foppe Benedictus

0051322


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Mass customiation at TNT *ost *akketservice

Management summary (Dutch)

%n de af&elopen periode is op basis van een literatuuronderoek+ drie casestudies en een "orkshop dit rapport

tot stand &ekomen$ %n het verkennende literatuuronderoek in diverse theorien naar voren &ekomen$ )at

opvalt is dat het onderoek naar mass customisation no& in een relatief be&innend stadium is$ it komtvooral omdat recente ont"ikkelin&en op het &ebied van 4M en internet het &oed uitvoeren van een masscustomisation strate&ie no& niet lan& mo&elik maken$

e discussie over de definitie van mass customisation verdeelt ich in t"ee kampen+ een op de praktik&ebaseerde en een academisch stromin&$ e &ekoen definitie behandeld drie kanten van het masscustomisation verhaal de diversiteit van het aanbod+ de relatief la&e kosten en het lan&duri& klantencontact$/ver de diversiteit is een kanttekenin& te plaatsen aan&eien re&elmati& het aanbieden van o veel mo&elikopties &eien "ordt als mass customisation$ it is niet "aar het om draait+ het &aat erom in staat te in deklant een optie te leveren die o &oed mo&elik aan in "ensen voldoet$

-et uray frame"ork helpt bi het cate&oriseren van mass customisation or&anisaties$ -et is &ebaseerd ophet klant6order6ontkoppelpunt en een typolo&ie voor modularisatiemethoden$ !it een vervol&studie blikt dat

financile prestaties het hoo&st in "anneer de or&anisatie een vorm van mass customisation aanneemt dieniet te ver van haar huidi&e ont"erp af li&t$

-et klantenrelatie aspect is ver"oord door one6to6one marketin& dat er vanuit &aat dat iedere klant ei&en"ensen heeft "aar rekenin& mee &ehouden kan "orden$ it behelst vier stappen "aarbi eerst de klant&e7dentificeerd "ordt+ om met de op&edane data een differentiatie te maken en daarna de interactie aan te&aan met dee klant$ Tot slot dient de or&anisatie aan&epast te "orden$

8ekoen is om drie cases aan de hand van de definitie+ het uray frame"ork+ one6to6one marketin&+ de %Tinrichtin&+ de voor6 en de nadelen te ver&eliken$ /m de vertalin& naar de situatie van T** &oed te kunnenmaken is een "orkshop &ehouden bi T**$ Met dee aanvullin& in de vol&ende advieen op&emaakt$

-et meest drin&ende advies aan T** is om the be&innen met het veramelen van data over klanten$ /p basis

van de resultaten van een vra&enlist blikt dat hier het &rootste &at it ten opichte van een one6to6onemarketin& uitvoerin& it$

(tap voor stap uitbreiden van het mass customisation portfolio is het t"eede advies$ Naast dat het inrichtenen implementeren van mass customisation een &rote klus is+ al het ook veel van het aanpassin&svermo&enver&en van o"el T** als haar klanten$ -et is belan&rik om van de klanten te leren en dit als input te&ebruiken voor verbeterin&en$

Mana&ement summary 9utch: 3


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Table of content

*reface$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2Mana&ement summary 9utch:$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$3

;ist of abbreviations$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$51$TNT post pakketservice$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$uestion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$=4esearch method$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$=

2$;iterature$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?Mass customisation history$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?efinitions$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.oncepts$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.M and services$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$11Benefits$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$11

hallen&es$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$124esearch on M$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$12%T as enabler$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$13/ne6to6one marketin&$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$13#valuation frame"ork$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1@

3$ases$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$15Miadidas$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$15#'pedia$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1=

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@$TNT post pakketservice$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$22urrent situation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$22

)orkshop$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$235$onclusion and discussion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2uestion it raises more >uestions$ Thou&h one of these follo"6up>uestion should be "hat are the "ishes of the customers$ This >uestion is out of scope for this thesis andshould be ans"ered some"here else$ %n order to structure the ans"erin& of the research >uestion three sub

>uestion "ill collectively ans"er the main research >uestion$

(ub >uestions

1$ )hich possibilities of mass customisation are su&&ested by literatureI2$ )hich solutions of mass customisation are used in other sectorsI

3$ )hat is the current situation at T** re&ardin& mass customisationI

Research method

The first sub >uestion re>uires a literature study$ As a first step a literature search needs to be done ase'ploration of the M field$ Broad search >ueries "ill be used to &et a &ood understandin& of this researcharea$ %n specific areas that are more of interest for this paper specific literature search "ill be done$ As aresult of the literature search a frame"ork needs to be developed$

The second sub >uestion "ill be ans"ered by doin& a case study$ (earchin& for valuable cases "ill be thefirst step in this process$ Ne't these cases need to be fitted into the frame"ork to see ho" they relate to eachother$ The last step is to distil the lessons for T** out of the literature and cases$ Ne't to that input from a

"orkshop "ill also be used to brin& up different alternatives for T**$ To conclude conclusions "ill be &iven"ith recommendations for T**$

1$ TNT post pakketservice =

Figure 2: "igh le%el process (source: authors own illustration !


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. Literature

This chapter first &ives M a place in the history of manufacturin&$ Ne't the key concepts are e'plained and

choose a definition to "ork "ith$ A special section is for the relationship bet"een service or&anisations and

M$ Benefits and challen&es of M are handled in the follo"in& sections$ A short overvie" of the researcharea is &iven ne't$ As M is linked "ith many different research areas+ like marketin&+ %T+ and innovation"ill briefly be touched upon$ The last section is about the frame"ork that "ill be used "ith the cases$

Mass customisation history

urin& the industrialiation era+ craftsmanship "as replaced by industrial production and after Ford had

produced the T6model+ the mass production era "as born$ Famous is the >uote from -enry Ford hisautobio&raphyH DAny customer can have a car painted any colour that he "ants so lon& as it is blackE$ This>uote is typical for mass production$ Most important in mass production is efficiency$ %n the desi&n of aproduct also the desi&n of the manufacturin& process needs to be considered as this "ill determine theefficiency$ #fficiency is in every aspect of the process$ Thou&h the effect "as that every company createdmore or less the same one6sie6fits6all product$ #specially "hen also transport became cheaper and faster andmarkets became &lobal$

The mass production had also an effect on marketin&$ Not only production should be efficient also marketin&needs to be as efficient as possible$ Mass marketin& focusses on reachin& as many potential customers aspossible via mass media like television$ Also here it meant a one6sie6fits6all approach

From the 1.50s till the 2000s customers &ot more demandin&$ First price "as the main reason for purchase+after that they "anted also a hi&h >uality$ Ne't also variety and speed "ere added$ The focus of strate&iesshifted "ith these market developments as the old ones "ere not sufficient 9Jassine+ Cim+ 4oemer+ K-ol"e&+ 200@:$ The focus shifted from a process orientation to a product orientation to a customerorientation$

The trend is to"ard individualiation in every possible "ay$ This can be e'plained by a &ro"in& number ofsin&le person households+ a orientation to"ards desi&n and bein& a"are of >uality and functionality thatconsumers "ant 9*iller K MLller+ 200@:$ Also due to the fact that customers have better and easier access toinformation+ customers become more cost6conscious and demandin& 9Cratochvl K arson+ 2005:$%ndividual customers have become more important for companies to focus on$

Mass customisation reads as a parado'$ #specially "ith the *orterGs &eneric strate&ies in mind$ Not choosin&bet"een differentiation 9customisation: and cost leadership 9mass production: has been called Da recipe for

belo"6avera&e performanceE 9*orter+ 1.?5:$ (till *ine ar&ues that it is possible to have differentiation andlo" prices at the same time$ These t"o vie"points seem to conflict$ This conflict e'ists because of thedifferent vie"point+ *orter looks at the "orld around him at that time+ *ine looks ahead and sa" someor&anisations successful balancin& bet"een differentiation and cost6consciousness$ %f M is not doneproperly it "ill lead to a belo"6avera&e performance because of bein& stuck in the middle as *orter calls it$*eople do not buy e'pensive products that do not appeal to their needs$ Both also call for a clear choice anddedication to that choice+ "hether that is differentiation+ cost leadership+ focus or usin& M to &et a trade6offbet"een these strate&ies$ The same holds for the value strate&ies of Treasy and )iersema 91..=:$ M tries tocombine all three strate&ies customer intimacy+ operational e'cellence and product leadership$ Thou&h Mscholars do remark that a or&anisation that is desi&ned for cost leadership or operational e'cellence "ill most

likely outperform a M or&anisation in the short run$

The term mass customisation has been first used by (tan avis in his book Future *erfect 91.?=:$ ,oseph

*ine %% has made the concept popular "ith his book&ass customisation ' The New Frontier in usiness)ompetition91..3:$ As "ith mass production the automotive industry also "as one of the first to embracethis mass concept$ /ne of the reasons "hy *ineGs book &enerated more popularity than avisG had done isthat it &ave a more practical advice ho" mana&ers should use M in day6to6day practice$

%nternet has been a &reat enabler of M$ Not only has it lo"ered the transaction costs+ it also created a lo"

2$ ;iterature ?


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barrier meetin& place for customers and or&aniations$ (ince the rise of the internet M use has also risen+because it reduced practical issues of handlin& comple'ity 9*iller+ Moeslein+ K (totko+ 200@:$

Definitions

Althou&h M is around for almost three decades there is still not a uniform definition accepted by allscholars$ *ine has produced a standard "ork in this research area$ ue to implementation issues+ like datamana&ement+ it remained difficult to &ive perfect e'amples of M in practice in the .0s$ Because of the lackof perfect e'amples there "ere t"o streams+ the papers ori&inated from practice that &ave a more pra&matict"ist to the definitions and the academic school describin& ideal types$ Belo" are three different definitions

that are most influential in the research area$

avis+ "hen first talkin& about M+ describes the phenomena "hen Dthe same number of customers can be

reached as in mass markets of industrial economy+ and simultaneously they can be treated individually as inthe customied markets of pre6industrial economiesE 91.?=:$ Cno"in& that M "as a future concept avissketched an ideal type$ *ine defines the &oal of M in 1..3 as providin& enou&h variety in products andservices so that nearly every one finds e'actly "hat they "ant at a reasonable price$ *ine clearly is much

more pra&matic as avis "hich is sho"n by the "ords Denou&hEand DreasonableE$*iller and MLller state that M consists of three options DMass customisation means the production of&oods and services for a 9relatively: lar&e market+ "hich meet e'actly the needs of each individual customer"ith re&ard to certain product characteristics 9differentiation option:+ at costs rou&hly correspondin& to thoseof standard mass6produced &oods 9cost option:$ The information collected durin& the process ofindividualiation serves to build up a lastin& individual relationship "ith each customer 9relationshipoption:$E 9*iller K MLller+ 200@:$ *ine defines in 200= mass customisation as Dthe lo"6cost+ hi&h6volume+efficient production of individually customied offerin&sE 9*iller+ 200=:$

The definition used in this thesis is the one of *iller and MLller+ thou&h meetin& e'actly the needs is notcorrect as that "ould e'clude forms of M$ %t is also important to point out the >uote of *ine that DcustomersdonGt "ant choice$ They "ant e'actly+ "hat they needE 9*ine+ 1..?+ p$ 1@:$ )ith this >uote *ine dis>ualifies

his o"n definition of 1..3$ Thou&h kno"in& "hat they need does not mean that e'actly that should bedelivered$ )ith these remarks "e use the definition of *iller and MLller$

Concepts

There is no standard M implementation$ 8ilmore and *ine define four different types of Mimplementations collaborative customisation+ adaptive customisation+ transparent customisation+ cosmeticcustomisation 91..=:$ These types have a different approach to the "ay to customie the product$ollaborative customiers conduct a dialo&ue "ith individual customers to help them articulate their needs+

to identify the precise offerin& that fulfils those needs+ and to make customied products for them$ Adaptivecustomiers offer one standard+ but customiable+ product that is desi&ned so that users can alter itthemselves$ osmetic customiers present a standard product differently to different customers$ Transparent

customiers provide individual customers "ith uni>ue &oods or services "ithout lettin& them kno" e'plicitlythat those products and services have been customied for them 98ilmore K *ine+ 1..=:$

ustomer inte&ration is one of the important aspects of M as seen in the definition$ %t is defined as a formof industrial value creation "here Gthe consumers take part in activities and processes "hich used to be seenas the domain of the companiesG 9)ikstrm+ 1..


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Based on the typolo&y of !lrich and Tun&+ uray et al$ 92000: made a typolo&y of M confi&urations$ (hecombined the typolo&y "ith the point of customer involvement$ uray identified four M confi&urationsfabricators+ involvers+ modulariers and assemblers$ Fabricators and involvers have the customers involvedearly in the production cycle+ modulariers and assemblers only involve them durin& the assembly or use$

Fabricators and modulariers use modularity types that are applied in the be&innin& of the production cycle+like component sharin& and cut6to6fit$ %nvolvers and assemblers use the other modularity types that are

applied in the assembly and use phase of the production cycle$ Most mass production ori&inatedor&anisations "ill tend to M confi&urations that are closer to mass production 9assemblers andmodulariers: and visa versa "ith customied ori&inated or&anisations$ )hen or&anisations have theirprevious production strate&y in tact+ the choice for a matchin& M confi&uration "ill have a hi&her financialperformance 9uray+ 2002:$

An other vie" is proposed by Mintber&$ Mintber& 91.??: defined three forms of customisation pure+tailored and standardied$ -e already linked customer involvement to the customisation process$ )hile inpure customisation the customer is needed throu&hout the complete process and is therefore not reallysuitable for M+ the other t"o are$ Tailored customisation involves the customer from the fabrication phase

in the production process and standardied customisation from the assembly$Cratochvl and arson see a trend from assemble to order and en&ineer to order to"ards confi&ure to order$They state that every comple' product or service can be made usin& one of these concepts 92005:$ Assembleto order implies that the variance is kept small to keep the price as lo" as possible$ #n&ineer to order doesnot need to keep the price that lo"+ but it has difficulties estimatin& cost and time to produce$ onfi&ure toorder 9t/: is the M option$ t/ serves the middle bet"een lu'ury and simple lo"6price products$

The frame"ork as proposed by uray 92000: can be used to cate&orise M manufacturers$ Thou&h thisframe"ork is build upon the production cycle it is also useful for service oriented or&anisations$ uray looksat the point customers are involved and the type of modularity$ As M is bet"een mass production andcustomisation it can lean to"ards both sides$ uray concludes that more successful or&anisations tend topick an M solution that looks like their old process$

There is no discussion that for the desi&n of M the placement of the customer order decouplin& point

2$ ;iterature 10

Figure *: &o+ularit, t,pes (-lrich . Tung/ 1991!


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achieve a better strate&ic fit "ith customersP lon&6term needs+ and 95: the ability to forecast and understandmarket opportunities is increased from the improved and fre>uent communication "ith customers

Cratochvl and arson have found four benefits from M lo"er costs+ minimiation of losses+ increasedloyalty and life6cycle revenue+ and easier service and up&rade 92005:$ Thou&h lo"er costs seems not in line

"ith "hat mass production stands for+ still this lo"er costs is seen not for a sin&le product+ but for thecomplete live6cycle of a product cate&ory$ By reusin& components costs are reduced for ne" versions orother lines+ this overlaps partly "ith the easier up&rade$

Challenges

M does not come for free$ %t adds comple'ity to the system+ internally as "ell as e'ternally$ %nternalcomple'ity is caused by the product variety but this comple'ity is not seen by the customer "here e'ternal

comple'ity is$ #'ternal comple'ity arises because of 91: the limited information processin& capacity ofhumans+ 92: the lack of customer kno"led&e of the product+ and 93: the customer i&norance about hisindividual needs 9Blecker K Abdelkafi+ 200uestions tend to re&ress to the middle$ *iller and MLller think part of this is due to poor kno"led&e of theintervie"ees of M and their needs+ so education of the customers is needed$

Many scholars point out that M is not about havin& your customers overloaded "ith choices 9*ine+ *eppers+

K 4o&ers+ 1..5:$ -avin& to spend much time in choosin& is not "hat customers "ant and that is "hat M isabout providin& a solution that fits the customer best$ Thou&h this is "hat scholars often see "hen lookin& atthe M implementations in practice$

Research on MC

Cumar et al$ 9200=: analysed 112@ M publications that had been published in ournals and ma&aines since1.?=+ "hen the term M "as first used by avis$ They sho" that M research has &one throu&h three sta&es

already$ First slo" or incubation from 1.?= till 1..2+ after that "ith the publication of *ine Gs booke'ponential from 1..3 till 2003$ From 2003 till 2005 it stabilied and matured$ Cumar et al state that Mdiffused very "ell as articles "ere published in =@2 different ournals$ )hen a topic is interestin&+ otherfields "ill claim part of it+ so the topic "ill be covered in ournals outside of the ori&inal field$ This can beseen in the M field "here only 23 of the articles is published in the top ten ournals$ Thou&h Cumar et al$

2$ ;iterature 12


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state that the M field is not yet devolvin&+ they have only their o"n belief that ans"ers that >uestion "ith ano$

Blecker states that there is a lack of research concernin& the effective implementation of M in practice9200


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"valuation frame#or!

A structured "ay to evaluate the cases is needed$ The different theories that have been discussed above "illbe used$ This combination of evaluation factors "ill result in a short summin& up of the findin&s sho"n in a

table$ At the end of every case this table "ill be elaborated upon$As the definition of M is still debated+ the definition used "ithin the cases "ill be looked after$ #speciallythe fact if M delivers them only more variety or really &ives their customers "hat they need$ The one6to6one marketin& approach of *epper+ 4o&ers and orf "ill be the &uideline to compare the cases in themarketin& area$ Their steps "ill compared "ith ho" the or&anisations introduced their M solution$ The "ay

ho" the or&anisations constructed their M solutions "ill be evaluated "ith the typolo&y of !lrich andTun&$ Also the client order decouplin& point "ill be evaluated$ ombinin& both of these factors "ill fit in theframe"ork of uray$ As %T infrastructure plays an important role in M also this aspect "ill be touchedupon$ ependin& on ho" heavily the M solution depends on %T it can be elaborated more$ The use ofinformation from systems like 4Ms "ill be one of the focus parts$ The results of the proects "ill beevaluated and the outcome "ill be divided into benefits and challen&es of the proects$

Theory Aspects

uray ifferentiation+ cost+ and relationship option

efinition %dentify+ differentiate+ interactin&+ and customie behaviour

/ne6to6one marketin& FabricatorsOinvolversOmodulariersO assemblers

%T onfi&urator+ 4M

Table 1: Framework summar,

2$ ;iterature 1@


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!. "ases

%n total 3= cases "ere evaluated on usefulness 9see appendi' 1 for a full list:$ The maority of the evaluated

cases involved manufacturin& or&anisations and not the preferred service or&aniations$ The >uality of the

cases differed from small descriptions "ithout a case specific evaluation of the introduced model and specialissues "ith "ell documented cases$ Three cases are selected for further inspection Miadidas+ #'pedia and T6online$ After introducin& the three cases the fourth section "ill summarie ho" the cases fit the frame"ork$

Miadidas

Founded in 1.2@ by the brothers assler1in 8ermany Adidas &re" in fast pace as a sports brand and has the

lar&est market share after Nike in the athlete shoe industry 9Moser+ Muller+ K *iller+ 200uipment producer also apparels+ fashion shoes and accessories are part of the Adidasbranch$ Adidas is no" in essence a marketin& or&aniation rather than a producer$ All the lar&e brands havetheir shoes produced in Asia and rely on their partners heavily$

Moser et al$ identify three challen&es in the athlete shoe industry "hich stimulated the development of M inthe industry 91: blurrin& of market se&ments+ 92: technolo&ical innovation+ and 93: &ro"in& product variety$Most lar&e brands have in some "ay an M pro&ram+ ne't to that some start6ups offered M shoes on6line9Moser et al$+ 200


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production 9uray+ 2002:$

Definition

The differentiation option of the definition is made "ith the remark that e'actly meetin& the need is a utopia$

Miadidas does &ive a lar&e ran&e of options to chan&e the desi&n and comfort of the shoe$ %t should be notedthat the Miadidas does not pass the test of scalability 9Moser et al$+ 200


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Challenges

(ellin& the proect internally+

makin& the production modular 9Ber&er+ 2003:+

addin& 4M 9Ber&er+ 2003:+

no confi&uration system available for online sales 9Moser et al$+ 200


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Definition

Thou&h the variety is limited by the contracts that #'pedia has the possibilities "ithin that offerin& aretheoretically not limited by the desi&n$ #'pedia only sho"s sensible options to pick from+ so "hen you fly toBarcelona a rental car can be chosen from that area$ The cost of the click and mi' is not hi&her as the all6in

offerin&s$ Because #'pedia has more data about the customer it can sell additional products and services thatthe customer mi&ht be interested in$

One-to-one marketing

)ith the use of click and mi' #'pedia &et the chan&e to identify their customers$ Thou&h they did marketresearch about the "ishes of customers differentiation "as not made due to the all6in concept$ )ith

clickKmi' it is possible to let customers themselves differentiate their offerin&$ The offerin& to everycustomer is still the same+ all customers &et all options to choose from$ (o it makes no difference "hen youbook a beach or a cultural trip to Barcelona+ you &et the same possible additions$ )hen lookin& at theinteraction "ith the customer it is clear that the customers no" have somethin& to say+ thou&h the focus is onsellin& and the conse>uence is that #'pedia offers as much as possible$ The enterprise behaviour is not

different from "hat is "as before$

IT

The &raphical confi&urator that supports clickKmi' is the drivin& force bet"een #'pediaGs M concept$ %tconnects the customer "ith the suppliers 94&elein et al$+ 200


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Theory onclusion

uray Assembler

efinition All three options present

/ne6to6one marketin& No behaviour and fe" interaction

%T No full use of 4M

Table *: ummar, o the 3pe+ia case

Tonline

Based upon -afenbrQdl and MLller 9200


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IT

My personal channel is made possible by a soft"are confi&urator+ but as not every T has the hard"are to doso set6top6bo'es "ere used to brid&e this$ The possibility to interact "ith the customer of the internet is usedto bypass the one6"ay desi&n of television$ Thou&h kno"in& "hich pro&rams someone vie"s &ives &oodopportunities for advertisement these opportunities are not taken$

Benefits

Meets better the needs of the customer+

producers "ill have e'act numbers of vie"ers+ "hich is valuable information for stopO&o decisions+

internet and television can use each others stren&ths more+

it meets the individualiation trend$

Challenges

No standard yet+

the market &ets less transparent+

the learnin& curve for customers+

thou&h the pro&ram >ueue can be customied+ the pro&ram itself can not+

possible data problems+

the music industry has already &one trou&h a same sort of transaction and sales fi&ures dropped$

Theory onclusion

uray Assembler

efinition Applies

/ne6to6one marketin& 8ood customisation of enterprise behaviour+ no &ood interaction

%T No 4M usa&eTable 4: ummar, o the T'online case

3$ ases 20


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%ummary

%mplementations are su&&ested to be done step by step 9*eppers et al$+ 1...:$ Miadidas is the most cleare'ample as the M portfolio is enlar&ed by addin& products every step$ Also the &uidance and supportin&

tool differ each step$ %n the first phase special trained Adidas personnel is takin& the orders "ith advancedtools "ithout an easy to use interface$ )hen enou&h e'perience is collected also easier to use and cheapertools are used "hich makes "ay for franchise takers to take the orders themselves$ urrently the customerperforms the customisation via internet &uided by a "iard$

The market drives the M initiatives of #'pedia and T6online$ Miadidas "as continued and e'pended more

rapid by demand of the market$ %t is important that the demand for M e'ists other"ise the customers "illnot be "illin& to pay the premium$

There are several pitfalls for M$ As M is about information it is important to have a "ell "orkin& %T back6end$ %nformation is key in M and the %T makes the information load mana&eable$ Not only a &ood 4Mpacka&e is need for storin& and mana&in& the customer information also a &ood confi&urator is needed foreither the online proposition or the sales force$ The couplin& of these systems and the #4* systems make it

possible that the costs of M need not be hi&her as mass production$Althou&h Miadidas is seen a success story it has a lar&e dra"back as the set6up is not scalable$ #speciallyilliteracy in Asia is a lar&e problem for producin& M shoes as a lar&e part of the "orkforce can not read theproduction instructions$ The internal comple'ity can not be handled by the current "ork force$ Also the "orkflo"s of the mass production and M are separated+ thou&h the desi&n of the shoes is the same$ )hendesi&nin& a M process scalability is an important aspect$ %n the e'treme cases uni>ue products can beproduced as easy as one million the same products "ithout any a different cost structure$ The #'pedia and T6online cases are desi&ned as such+ thou&h they have the benefit of bein& an information product$

Adidas has seen Miadidas as a marketin& tool for a lon& term+ "hich is part of the reason "hy scalability isoverlooked$ %t is also a "ay to sell the concept internally to overcome the resistance problem$ %nternalresistance is al"ays part of the problem "hen drastic chan&es are to be made$ T6online has to make a chan&e

due to chan&in& le&islation$ #'pedia has the pressure of a chan&in& market that forces them to look foralternative product offerin&s$

3$ ases 21


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%. TNT post pakketservice

%n this chapter the current situation "ill be e'plained first$ %n the second part results of the "orkshop at T**

"ill be presented$

Current situation

The current portfolio of T** e'ists of the core service+ deliverin& a parcel+ "ith added services bundled in apacka&e$ For consumers there are three options parcels "ith a "ei&ht less than 10 kilo&rams "ith or "ithoutinsurance till S 500 and parcels "ith a "ei&ht of more than 30 kilo&rams$

At this moment T** adusts its specifications to lar&e customers$ /n the other side it delivers the sameservice to all its customers+ also for almost all lar&e customers$ ;ar&e customers are the only ones that &etdirect access to the A*% to implement the order preparation in their #4* or 4M packa&e$ For smallercontract customers the *arcel"are solutions are available dependin& on sie the "eb or desktop version isrecommended$ The order volume is the main diversifier "hen se&mentin& the client base of T** 9see table

5:$ But are the needs of lar&e customers alike or are the needs of the smaller customers alikeI As T** has noendurin& relationship "ith its lo"est se&ment+ the smallest senders that send only a packa&e ones in a "hileT** does not kno" much about these customers$ The customers that have a contract "ith T** are trackablein the 4M "hich lo&s the interactions "ith this customers$ T** "ants also be able to analyse their lo"estse&ment of irre&ular senders$ %n order to do so they have developed online postkantoor 9post office: "herethese customers can lo&6in$ As most of these customers are more re&ular also receivers of the packa&es trackand trace "ill also be part of online postkantoor$ At this moment T** does not use analyses of site traffic toadust its online offerin&$

lient se&ment Non6contract (mall Medium ;ar&e

(oft"are solution *arcy *arcel"are )eb *arcel"are esktop -ome build

Table 5: )urrent segmentation o T##s clientsurrently *arcel"are offers the same interface to all its customers "hich leads to an overload of options 9seefi&ure @:$ %n order to be able to reuse elements of *arcel"are in online postkantoor T** has divided thesesoft"are into services$ Thou&h the &oal is not to have a complete (/A architecture$ A pra&matic approach istaken that "hen a re>uested solution is not possible "ithin the current service offerin& a ne" specificsolution "ill be made$

Ne&otiations of T** "ith its sendin& customers is dominated by the party that has most po"er$ #ither theorder volume of the customer makes T** adust to their specifications or it is T** "ho is usin& its sie andlack of competition to make their customers adust to T**s specifications$ *orterGs supplier and buyersbar&ain po"ers are clearly stron& in this industry 9*orter+ 1.?5:$

T** efficiency depends on several parameters+ drivin& times+ hit rate+ inter drop distances and drop

duplication rate are the most important$ ;o"erin& the time and distances bet"een drop points and raisin& therates makes T** more efficient$ 4aisin& efficiency is not only in the interest of T** but also of the receiver$ost leadership is the focus for T** on the operations side$

There are different options of usin& M for T**$ As T** is an operation e'cellence or&anisation also its Msolution should lean more to"ards mass production than to"ards customisation$ This means havin& adecouplin& point late in the process$ %t also means usin& a type of modulariation "hich fits in late in the

process 9uray+ 200@:$ Ne't to the ne" M process the old mass production process can still be in place andthey mi&ht have learnin& effects on each other 9Cotha+ 1..


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4elyin& on bar6codes 9these are already on the packa&e: or 4F% chips mi&ht solve this problem+ but "illneed a mind6shift as "ell adustments in the information stora&e$

&or!shop

%n order to &et a realistic idea about "hat M can do for T** a "orkshop "as held at the head office of T**in -oofddorp$ %nvited "ere a mi' of people from the %T and marketin& department$ Four %T and threemarketin& representatives attended the t"o hour "orkshop on 23 (eptember 2010$ The set6up "as to presentthree theories the definition by *iller and MLller+ the uray frame"ork+ and one6to6one marketin& asproposed by *eppers+ 4o&ers and orf$ %n order to &et a feelin& "hat the subect is about three cases "ere

presented as e'amples$ To &et the discussion started several statements "ere proposed durin& the "orkshop$These statements hi&hli&ht a part of the previous presented theory$ They are sho"n in appendi' 2 in utch asthey "ere presented$ As input for the "orkshop the &ap tool from the *eppers+ 4o&ers and orf 91...: "assent on forehand to look ho" lar&e the &ap is bet"een one6to6one marketin& as proposed by *eppers et al$and T**$ As result of most slides had a messa&e of "hat T** could learn from it$

urin& the session there "as &reat interest in the subect and already before the statements there "as a livelydiscussion$ A len&thy discussion "as held about "ho is the customer+ the payin& sender or the receiver$ The

result of this discussion "as that at this moment the focus is and should be on the sendin& party$ The receivermi&ht &et more influence in the process of "hich transporter "ill be used$ %n that scenario the end6user needsfocus$ oncluded durin& the discussion "as that both need to have separate strate&ies$ *eppers+ 4o&ers andorf are >uite clear in that the end6user is the customer and needs the attention$ Thou&h the current structure"ill not tolerate a 1?0 de&ree turn$

@$ TNT post pakketservice 23

Figure 4: creenshot #arcelware (source: TNT!


24/32


25/32


esults

The "orkshop sho"ed a number of lessons that T** should bear in mind "hen proceedin&$ The &ap toolsho"ed that the kno"led&e strate&y &ap is the one needin& most attention$ urin& the discussion the firststep+ identifyin& your customer by collectin& data+ "as easily skipped$ %t "as easily assumed and evene'plicitly said that T** can think for its customers$ Assumptions about customer needs mi&ht be "ron& in&eneral+ "hat is more applicable in the case of M assumptions about one of the customers probably is"ron&$

From the >uestions raised it became clear that M has a &reat difficulty in e'plainin& "hat e'actly is M$Althou&h brin&in& up the definition to undermine that problem$ The definition of *iller and MLller 9200@: islar&e and the settin& makes it difficult to understand it at first si&ht$ Also the different options make itdifficult$ For presentations purposes this definition mi&ht not be the best choice$ Also the uray frame"ork

needs more study upfront to understand$

/ne discussion "as about "hether T** its service is part of the M proposition of its clients or T** itsservice itself should make M possible$ ;inked "ith this discussion is "ho is the customer that T** shouldbase its process around$ The discussion about "ho T** should re&ard its customer is one "ith a lon&er

history as this "orkshop$ %n the li&ht of M it is important to kno" "ho you define as customer in order tocollect data about them$ The resultin& conclusion of the discussion that the market "ill need time to take theend user as customer$ )ith takin& the receiverGs needs into account also the sender "ill profit+ thou&himplementation "ill be difficult as lon& as the sender collects the payment for T** of the receiver$ (o thesender needs also to be considered in lookin& for a M proposition$

@$ TNT post pakketservice 25


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. "onclusion an* *iscussion

The literature and case studies &ive helpful ans"ers to the research >uestion$ T** can make use of M in

multiple "ays$ %mportant is to not think that M can be implemented overni&ht$ As seen from the cases and

also literature su&&ests takin& one step at the time$ The one6to6one marketin& tool kit can function as ahelpful &uideline for makin& those steps$ T** should start collectin& data of its customers$ Thou&h thediscussion about "ho actually is the customer remains$ As resulted from the "orkshop the first focus shouldbe on the sender side+ but should shift to the end6user+ the receiver$ The results of the &ap tool sho" that datacollectin& and handlin& is at this moment a "eak point at T**$ As this is the startin& point the first stepsshould be made in this direction$ The to be desi&ned ne" online postkantoor mi&ht be a &ood opportunity tomake first steps$ This confi&urator should be input for a 4M system$ %t can collect data from both senderand receiver$ urrently additional services are offered to customers$ Makin& the infrastructure fle'ibleenou&h to handle every possible combination "ill be an other option to start from$

The frame"ork of uray learns that an or&anisation like T** should look at assembler options to implementM$ This "ill mean that an modularity type is used like bus modularity+ "here additional services are

options for the main service+ deliverin& a parcel$ Also it predefines that the customer is not influencin& thedesi&n and production process+ the sortin& in case of T**$

As the cases and also literature su&&ests T** needs to take one step at the time$ As said above collectin& data"ill be the first step$ Before collectin& the data it is also important to kno" "hat to look for$ For T** it is

especially important "ho to collect data from as there is hardly any data of the receiver$

(ome remarks need to be made concernin& this report$ First of all no suitable cases of failin& Mimplementations "ere found$ Thou&h literature does address challen&es and pitfalls$ /ne repeatin& issue isthat M is not about offerin& the customer variety$ ;earnin& from mistakes 9of others: is perhaps more

valuable than tryin& to copy success stories$ As markets are different M solutions "ill be different$

(econd remark is that the M research field is still under heavy development$ Not even the definition of M

has complete consensus$ *artly because of the difference bet"een theory and practice there is still a lot to be

researched$ (everal M solutions "ere not possible before the introduction of 4M packa&es "ith fle'ibleinte&ration "ith other applications$ The impact is that theoretical concepts are only recently or even not yetto be empirical validated$

Third it should be noted that lo&istics has it o"n dynamics+ different from manufacturin& and servicedelivery$ The lack of decent e'amples of M implementations "ithin a lo&istical or&anisation makes itharder to conclude that the su&&estions also hold for T**$ Also is there a lack of "ell documented servicee'amples$

%n the ne't para&raphs some implementation e'amples "ill be discussed$ The ne't para&raph "ill take thesender as startin& point+ "here the last para&raph takes the receiver as startin& point$

;ookin& at the service T** delivers it is important to kno" "hich parameters have an impact on the costs$

(ie+ "ei&ht and value all have some impact and are kno"n to the sender before the packa&e is collected$ Anapplication can be that the sender &ives these parameters as an input for the sendin&$ The parameters can beused in for instance the plannin&$ 8ettin& the sender to share this information he has &ot to have an incentive$A reduced or better a packa&e specific price can be the result$

Takin& the vie"point of the receiver also opens up possibilities$ -avin& the receiver determine the deliveryspot and time can be one of these possibilities$ The information if the receiver is at home is valuableinformation and the receiver mi&ht be "illin& to share that information as he &ets a faster delivery$ %n a laterstadium it "ould be preferable that the sender determines the sendin& options$ %n that case the price can bevariable on parameters the receiver &ives$ For instance "hen the receiver orders from different parties hemi&ht be able to combine them on a date and time$ Most important "ill be to listen to the receiver more andtake advanta&e of its needs$

5$ onclusion and discussion 2


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+. eferences

Ber&er+ $ 92003:$ Mass customiation 6 An adidas perspective$7 )ollo8uium (igest!+*'100*1+ 56?$

Blecker+ T$+ K Abdelkafi+ N$ 9200


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intensity+ and ta'onomic frame"orks$7nternational ournal o Fle3ible &anuacturing ,stems+

199@:+


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&assenpro+uktion$ MunchenOienna$

*ine+ B$ ,$+ K avis+ ($ 91..3:$&ass customization: the new rontier in business competition$ -arvard

Business *ress$

*ine+ B$ ,$+ *eppers+ $+ K 4o&ers+ M$ 91..5:$ o Jou )ant to Ceep Jour ustomers ForeverI "ar%ar+

usiness 6e%iew+ ;*92:+ 103611@$

*orter+ M$ #$ 91.?5:$ )ompetiti%e a+%antage: creating an+ sustaining superior perormance: with a new

intro+uction$ Free *ress$

4&elein+ $+ 4odr&ue+ M$+ K MLller+ M$ 9200un+enintegration: Neue ?ege zum inno%ati%en #ro+ukt$

(ymposion *ublishin&$

4udber&+ M$+ K )ikner+ ,$ 9200@:$ Mass customiation in terms of the customer order decouplin& point$

#ro+uction #lanning . )ontrol: The &anagement o


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,. -ppen*ices

'ppendi$ () case studies

=$ Appendices 30

Case Source

APC Hvam 2006

Cmax.com Piller 2003

Creo Piller 2003

Custom Fit Ong 2008

Dolzer Piller 2003

D !an" Piller 2003

#t$icon Piller 2003

#x%e&ia Piller 2006 'acso 200( )$omson 2006 Smit$ 200*

F.+. Smi&t$ Hvam 2006

getCustom Piller 2003

,ieno- Dean 200(Hve Piller 2003

ic3& /an As%eren 2008

i&)o-n Piller 2003

1#A Piller 2006

n/DO Piller 2003 Piller 2006

1z insurance Piller 2006

1c$eDirect Piller 2003

+an&s4 en& custom Piller 2006

+#C sstems Piller 2003

+et oot Siev5nen 2006

+evi Strauss Piller 2003

+inel Piller 2006

arelliotori Forza 2006

i A&i&as Piller 2003 !erger7 C 2003 ozer 2006 H! case 2002

9atural gas in&ustr Fogliatto 200(

9e-s%a%er in&ustr Fran"e 200:

9!D 1ot$a ;::6

9i"e Piller 2003 Piller 2006

Possen.com Piller 2003

elect.com Piller 2003

Socital +ie Piller 2003

Ste%%en-ol ozer 2006

Strei Piller 2003), Fri&as +as$le 2000

)oota A&ler ;:::

)uro )ailor Siev5nen 2006

oots Piller 2003


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'ppendi$ *) statements +Dutch,

(tellin& 1

Mass customisation betekent voor iedere klant deelfde dienst+ namelik een op maat &esneden oplossin&

(tellin& 2

-et proces van T** is niet modulair en leent ich dus niet voor mass customisation

(tellin& 3

%eder pakket is &elik+ vandaar eenheidsprien

(tellin& @

e beor&er is de eni&e fle'ibiliteit in het proces

(tellin& 5

oor mass customisation is een radicale veranderin& nodi& binnen T**

(tellin&

Mass Customisation at TNT Post Pakketservice

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