Towards product customization: An integrated order fulfillment system

Authors:
Linda L. Zhang;Carman K. M. Lee;Qianli Xu
Affiliations:
Department of Operations, Faculty of Economics & Business, University of Groningen, Groningen, The Netherlands;Division of Systems and Engineering Management, School of Mechanical and Aerospace Engineering, Nanyang Technological University, Singapore;Division of Systems and Engineering Management, School of Mechanical and Aerospace Engineering, Nanyang Technological University, Singapore
Venue:
Computers in Industry
Year:
2010

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Abstract

To stay competitive, manufacturing companies nowadays pursue product customization; and configure-to-order (CTO) has been recognized as an ideal business model to implement product customization. Due to the complexities resulting from the large number of customized products, an increased attention has been paid to the order fulfillment process in CTO. However, most of the solutions delivered either focus on own interested areas without considering the impacts from/on the others or approach order fulfillment processes from a strategic level. In view of the limitations of existing solutions and the significance of order fulfillment activity automation and integration, this study considers the entire spectrum of order fulfillment process at an operational level and, proposes an integrated order fulfillment system (IOFS). The IOFS is designed to (1) automatically execute order processing, which is conventionally undertaken in a face-to-face manner; (2) configure products and process plans based on product and process family models; and (3) allow real-time data extraction and sharing of the latest information. Therefore, it assists companies to quickly respond to diverse customer requirements and deliver the expected products at low costs. An industrial example of turn unit assemblies is presented to demonstrate the feasibility and potential of the IOFS for product customization.