THE CUSTOMIZATION-RESPONSIVENESS SQUEEZE

FIRMS IN MANY INDUSTRIES ARE BEING SQUEEZED BY CUSTOMER DEMANDS FOR BO TH GREATER PRODUCT VARIETY AND REDUCED delivery lead times. This is di fficult for firms to achieve because quick delivery is usually based o n standardization, whereas product variety requires the organization t o be flexible and innovative. A common response to these demands is to start production of expensive, specialized products prior to receivin g specific orders for them. Such a risky approach often can be avoided , the authors argue. They present a framework for determining the exte nt of your company's ''customization-responsiveness squeeze'' and choo sing appropriate tactics to mitigate it.