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Mass customisation at TNT post pakketservice

Foppe Benedictus
0051322

Preface
This thesis is the conclusion of my bachelor study Technische bedri fskunde at the !niversity of T"ente in #nschede$ %n this assi&nment "e e'plore the possibilities of mass customisation and its use for TNT post pakketservice$ This research took place from May 2010 until (eptember 2010$ This study has benefited from the help and support of some people$ %n this preface % "ould like to thank some of them in particular$ % "ould like to thank )ilbert *rinssen of TNT post pakketservice for helpin& and coachin& me durin& my research+ he inspired me to make this report to "hat it is no"$ % also "ant to thank ,os van -ille&ersber& and -ol&er (chiele for their help and &uidance in this process$ They all provided me "ith &reat support and feedback+ "hich resulted in a study % am proud of to present to the reader$ Finally % "ant to thank my &irlfriend Miriam+ for the moral help me and support durin& this research$ #nschede+ 2. /ctober 2010 Foppe Benedictus

Mass customi0ation at TNT *ost *akketservice

Management summary (Dutch)
%n de af&elopen periode is op basis van een literatuuronder0oek+ drie casestudies en een "orkshop dit rapport tot stand &ekomen$ %n het verkennende literatuuronder0oek 0i n diverse theorie1n naar voren &ekomen$ )at opvalt is dat het onder0oek naar mass customisation no& in een relatief be&innend stadium is$ 2it komt vooral omdat recente ont"ikkelin&en op het &ebied van 34M en internet het &oed uitvoeren van een mass customisation strate&ie no& niet lan& mo&eli k maken$ 2e discussie over de definitie van mass customisation verdeelt 0ich in t"ee kampen+ een op de prakti k &ebaseerde en een academisch stromin&$ 2e &eko0en definitie behandeld drie kanten van het mass customisation verhaal5 de diversiteit van het aanbod+ de relatief la&e kosten en het lan&duri& klantencontact$ /ver de diversiteit is een kanttekenin& te plaatsen aan&e0ien re&elmati& het aanbieden van 0o veel mo&eli k opties &e0ien "ordt als mass customisation$ 2it is niet "aar het om draait+ het &aat erom in staat te 0i n de klant een optie te leveren die 0o &oed mo&eli k aan 0i n "ensen voldoet$ -et 2uray frame"ork helpt bi het cate&oriseren van mass customisation or&anisaties$ -et is &ebaseerd op het klant6order6ontkoppelpunt en een typolo&ie voor modularisatiemethoden$ !it een vervol&studie bli kt dat financi1le prestaties het hoo&st 0i n "anneer de or&anisatie een vorm van mass customisation aanneemt die niet 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$ 2it 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 de0e klant$ Tot slot dient de or&anisatie aan&epast te "orden$ 8eko0en is om drie cases aan de hand van de definitie+ het 2uray frame"ork+ one6to6one marketin&+ de %T inrichtin&+ de voor6 en de nadelen te ver&eli ken$ /m de vertalin& naar de situatie van T** &oed te kunnen maken is een "orkshop &ehouden bi T**$ Met de0e aanvullin& 0i n de vol&ende advie0en op&emaakt$ -et meest drin&ende advies aan T** is om the be&innen met het ver0amelen van data over klanten$ /p basis van de resultaten van een vra&enli st bli kt dat hier het &rootste &at 0it ten op0ichte van een one6to6one marketin& uitvoerin& 0it$ (tap voor stap uitbreiden van het mass customisation portfolio is het t"eede advies$ Naast dat het inrichten en implementeren van mass customisation een &rote klus is+ 0al het ook veel van het aanpassin&svermo&en ver&en van 0o"el T** als haar klanten$ -et is belan&ri k om van de klanten te leren en dit als input te &ebruiken voor verbeterin&en$

Mana&ement summary 92utch:

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Mass customi0ation at TNT *ost *akketservice

Table of content
*reface$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 2 Mana&ement summary 92utch:$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$3 ;ist of abbreviations$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5 1$TNT post pakketservice$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$< *roblem$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$= 4esearch >uestion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$= 4esearch method$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$= 2$;iterature$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$? Mass customisation history$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$? 2efinitions$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$. 3oncepts$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$. M3 and services$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$11 Benefits$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$11 3hallen&es$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$12 4esearch on M3$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$12 %T as enabler$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$13 /ne6to6one marketin&$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$13 #valuation frame"ork$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1@ 3$3ases$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$15 Miadidas$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$15 #'pedia$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1= T6online$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1. (ummary$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$21 @$TNT post pakketservice$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$22 3urrent situation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$22 )orkshop$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$23 5$3onclusion and discussion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2< <$4eferences$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2= =$Appendices$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$30 Appendi' 15 case studies$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$30 Appendi' 25 statements 92utch:$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$31 Appendi' 35 results &ap tool$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$32 Appendi' @5 professioneel functioneren$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$33

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Mass customi0ation at TNT *ost *akketservice

List of abbreviations
B2B B23 32B 323 3/2* 34M 3t/ %3T M3 (/A T** B/2 Business to business Business to customer 3ustomer to business 3ustomer to customer 3ustomer order decouplin& point 3ustomer relationship mana&ement 9system: 3onfi&ure to order %nformation and communication technolo&ies Mass customisation (ervice oriented architecture TNT post pakketservice Bideo on demand

;ist of abbreviations

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Mass customi0ation at TNT *ost *akketservice

1. TNT post pakketservice
TNT has emer&ed in 1..< by a mer&er bet"een Australian TNT and 4oyal 2utch Mail 9*TT post:$ *TT "as a state o"ned or&ani0ation ori&inated in 1=.. and responsible for mail+ telephone and tele&raph services$ *TT have been privatised in 1.?. and *TT "as split in 1..? in a telecom company 9C*N: and the mail company 9*TT post:$ %n 2002 the name "as chan&ed to T*8 9TNT post &roup:+ eventually the mer&er "as called TNT as this had more international potential$ TNT post pakketservice 9T**: is part of TNT post "hich is in its turn is part of TNT holdin& 9(ee fi&ure 1:$ T** is responsible for deliverin& parcels not suitable for delivery in the standard postbo'$ T** differs from TNT e'press 9a full dau&hter of TNT holdin&: as it does not "ork "ith &uaranteed time delivery and focusses on the lo"er 9mass: side of the market$

Figure 1: Global organization chart (source: author s own illustration ! %n 200. TNT reported a turnover of 10+@ billion dollar and a profit of <@? million 9TNT Annual report 2009+ 2010:$ TNT e'press had in 200? more than =0 000 FT# employed+ TNT post @3 000 FT#$ Thou&h TNT e'press is responsible for more than 50 percent of the returns+ TNT post delivers most of the profit 9DTNT fact sheet 200?+E 200.:$ T** has a lar&e net"ork of retail points "here consumers have access to the services of T**$ These points "ere mostly situated in post6offices+ but after closin& most of the post6offices+ currently they are situated in stores like supermarket Albert -ei n$ Ne't to these retail points T** has a collect service called *arcy$ *arcy is a service that lets customers print their o"n shippin& labels$ T** makes a distinction bet"een consumer clients and contract clients "ho have a contract "ith T** en sent at least 100 parcels per year$ For these clients T** has "ritten special soft"are5 *arcel"are$ *arcel"are has t"o flavours+ "eb and desktop$ For lar&er clients it is possible to inte&rate it into their o"n #4* and 34M packa&es$ T** has a track and trace service that &ives the sender and receiver information about "here in the process the parcel has been$ )ith the rise of e6commerce 91=F &ro"th bet"een 200? and 200. : T** has &ro"n on its "aves$ #6 commerce has created a lar&e volume &ro"th of the parcel market ne't to that the number of potential clients has &ro"n e'ponential$ %n the Netherlands alone there are more than 20$000 "eb shops active in 200. 9Thuiswinkel marktmonitor 2009+ 2010:$ 3ompetitors in the B23 se&ment of T** are 2-;+ 8;(+ (electvracht and several locale parties$ )hen it is about B2B T** has a fe" very lar&e competitors "ith full TNT dau&hter5 TNT e'press and !*($ %n the 32B and 323 competitors depend on the service asked for$ The process of T** is a three step one$ (implistic it is collectin&+ sortin& and distributin& 9see fi&ure 2:$ More detailed it contains preparin& the parcel "ith a label that contains all data needed for T** to deliver it at the ri&ht address "ith the ri&ht services$ After the collection the parcels &o to one of the three sortin& centres dependin& on the &eo&raphical division made by T**$ (ortin& &oes in t"o sta&es+ in the first sta&e the parcels 1$ TNT post pakketservice <

Mass customi0ation at TNT *ost *akketservice are sorted to "hich sortin& centre they should &o for the second sta&e "hich sorts the parcels on postal code$ The containers sorted on postal code &o to distribution centres and there these containers are loaded in the vans for the last step+ the deliverin& of the parcel at the address$ /f course it is not al"ays possible to deliver the parcel "ithin one attempt+ after t"o attempts the parcel is either returned to sender or delivered at a nearby retail point$ 2aily T** delivers around @00$000 parcels$ At this moment T** has one depot "hich is a combination of a sortin& and a distribution centre$ %n the future T** "ill replace all its sortin& and distribution centres by depots$ Because T** "orks more and more "ith subcontractors for its distribution T** becomes more a coordinator for its lo&istical services than a lo&istical company$

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

Problem
2ue to the rise of internet and e6commerce the situation of T** has chan&ed$ Also the competition on the mail and parcel market is hi&her due to liberalisation$ #'pansion in the Netherlands is difficult because the NMA 9The Netherlands 3ompetition Authority: does not allo" T** to lo"er their price because of their market share$ #'pansion has to be international$ T** has a &ood startin& point as it has e'perience "ith an open market$ /n the other side T** canGt afford to lean back+ especially due to the chan&in& market$ 3ustomer e'pectations are hi&her than ten years back$ T** "ants to serve these clients as &ood as possible but it has to keep in mind they are a bulk lo&istic or&ani0ation and chan&es in the operational process are slo" and have bi& impacts and lar&e risks$ Also the operational process has cost leadership as &oal$ 8ivin& added value to the customers comes at a cost+ the customer must be prepared to pay that price to make it "orth"hile for T**$

Research question
%n order to tackle the problem T** has set its eye to mass customisation 9M3:$ As an e'ploration of the sub ect the follo"in&+ broad research >uestion is formedH "ow can mass customisation principles help T##$ Because of the broad scope of the research >uestion 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 and should 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 literatureI 2$ )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 as e'ploration of the M3 field$ Broad search >ueries "ill be used to &et a &ood understandin& of this research area$ %n specific areas that are more of interest for this paper specific literature search "ill be done$ As a result 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 the first step in this process$ Ne't these cases need to be fitted into the frame"ork to see ho" they relate to each other$ 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 =

Mass customi0ation at TNT *ost *akketservice

. Literature
This chapter first &ives M3 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 M3$ Benefits and challen&es of M3 are handled in the follo"in& sections$ A short overvie" of the research area is &iven ne't$ As M3 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
2urin& the industriali0ation 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 his autobio&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 a product also the desi&n of the manufacturin& process needs to be considered as this "ill determine the efficiency$ #fficiency is in every aspect of the process$ Thou&h the effect "as that every company created more or less the same one6si0e6fits6all product$ #specially "hen also transport became cheaper and faster and markets 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 as possible via mass media like television$ Also here it meant a one6si0e6fits6all 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&ies shifted "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 customer orientation$ The trend is to"ard individuali0ation in every possible "ay$ This can be e'plained by a &ro"in& number of sin&le person households+ a orientation to"ards desi&n and bein& a"are of >uality and functionality that consumers "ant 9*iller K MLller+ 200@:$ Also due to the fact that customers have better and easier access to information+ customers become more cost6conscious and demandin& 9CratochvMl K 3arson+ 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 and lo" prices at the same time$ These t"o vie"points seem to conflict$ This conflict e'ists because of the different vie"point+ *orter looks at the "orld around him at that time+ *ine looks ahead and sa" some or&anisations successful balancin& bet"een differentiation and cost6consciousness$ %f M3 is not done properly 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 and dedication to that choice+ "hether that is differentiation+ cost leadership+ focus or usin& M3 to &et a trade6off bet"een these strate&ies$ The same holds for the value strate&ies of Treasy and )iersema 91..=:$ M3 tries to combine all three strate&ies5 customer intimacy+ operational e'cellence and product leadership$ Thou&h M3 scholars do remark that a or&anisation that is desi&ned for cost leadership or operational e'cellence "ill most likely outperform a M3 or&anisation in the short run$ The term mass customisation has been first used by (tan 2avis in his book Future *erfect 91.?=:$ ,oseph *ine %% has made the concept popular "ith his book &ass customisation ' The New Frontier in (usiness )ompetition 91..3:$ As "ith mass production the automotive industry also "as one of the first to embrace this mass concept$ /ne of the reasons "hy *ineGs book &enerated more popularity than 2avisG had done is that it &ave a more practical advice ho" mana&ers should use M3 in day6to6day practice$ %nternet has been a &reat enabler of M3$ Not only has it lo"ered the transaction costs+ it also created a lo" 2$ ;iterature ?

Mass customi0ation at TNT *ost *akketservice barrier meetin& place for customers and or&ani0ations$ (ince the rise of the internet M3 use has also risen+ because it reduced practical issues of handlin& comple'ity 9*iller+ Moeslein+ K (totko+ 200@:$

Definitions
Althou&h M3 is around for almost three decades there is still not a uniform definition accepted by all scholars$ *ine has produced a standard "ork in this research area$ 2ue to implementation issues+ like data mana&ement+ it remained difficult to &ive perfect e'amples of M3 in practice in the .0s$ Because of the lack of perfect e'amples there "ere t"o streams+ the papers ori&inated from practice that &ave a more pra&matic t"ist to the definitions and the academic school describin& ideal types$ Belo" are three different definitions that are most influential in the research area$ 2avis+ "hen first talkin& about M3+ 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 in the customi0ed markets of pre6industrial economiesE 91.?=:$ Cno"in& that M3 "as a future concept 2avis sketched an ideal type$ *ine defines the &oal of M3 in 1..3 as providin& enou&h variety in products and services so that nearly every one finds e'actly "hat they "ant at a reasonable price$ *ine clearly is much more pra&matic as 2avis "hich is sho"n by the "ords Denou&hEand DreasonableE$ *iller and MLller state that M3 consists of three options5 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 those of standard mass6produced &oods 9cost option:$ The information collected durin& the process of individuali0ation serves to build up a lastin& individual relationship "ith each customer 9relationship option:$E 9*iller K MLller+ 200@:$ *ine defines in 200= mass customisation as Dthe lo"6cost+ hi&h6volume+ efficient production of individually customi0ed 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 not correct as that "ould e'clude forms of M3$ %t is also important to point out the >uote of *ine that Dcustomers donGt "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 be delivered$ )ith these remarks "e use the definition of *iller and MLller$

Concepts
There is no standard M3 implementation$ 8ilmore and *ine define four different types of M3 implementations5 collaborative customisation+ adaptive customisation+ transparent customisation+ cosmetic customisation 91..=:$ These types have a different approach to the "ay to customi0e the product$ 3ollaborative customi0ers 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 customi0ed products for them$ Adaptive customi0ers offer one standard+ but customi0able+ product that is desi&ned so that users can alter it themselves$ 3osmetic customi0ers present a standard product differently to different customers$ Transparent customi0ers provide individual customers "ith uni>ue &oods or services "ithout lettin& them kno" e'plicitly that those products and services have been customi0ed for them 98ilmore K *ine+ 1..=:$ 3ustomer inte&ration is one of the important aspects of M3 as seen in the definition$ %t is defined as a form of industrial value creation "here Gthe consumers take part in activities and processes "hich used to be seen as the domain of the companiesG 9)ikstrNm+ 1..<:$ Modularity is an other key aspect on "hich the success of M3 is based$ !lrich and Tun& 91..1: developed a typolo&y of modularity "ith si' different forms 9see fi&ure 3 for short e'planations:$ 2ependin& on ho" to reuse the modules these types can be used in combination "ith each other$

2$ ;iterature

.

Mass customi0ation at TNT *ost *akketservice

Figure *: &o+ularit, t,pes (-lrich . Tung/ 1991! Based on the typolo&y of !lrich and Tun&+ 2uray et al$ 92000: made a typolo&y of M3 confi&urations$ (he combined the typolo&y "ith the point of customer involvement$ 2uray identified four M3 confi&urations5 fabricators+ involvers+ modulari0ers and assemblers$ Fabricators and involvers have the customers involved early in the production cycle+ modulari0ers and assemblers only involve them durin& the assembly or use$ Fabricators and modulari0ers 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&inated or&anisations "ill tend to M3 confi&urations that are closer to mass production 9assemblers and modulari0ers: and visa versa "ith customi0ed ori&inated or&anisations$ )hen or&anisations have their previous production strate&y in tact+ the choice for a matchin& M3 confi&uration "ill have a hi&her financial performance 92uray+ 2002:$ An other vie" is proposed by Mint0ber&$ Mint0ber& 91.??: defined three forms of customisation5 pure+ tailored and standardi0ed$ -e already linked customer involvement to the customisation process$ )hile in pure customisation the customer is needed throu&hout the complete process and is therefore not really suitable for M3+ the other t"o are$ Tailored customisation involves the customer from the fabrication phase in the production process and standardi0ed customisation from the assembly$ CratochvMl and 3arson 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:$ Assemble to order implies that the variance is kept small to keep the price as lo" as possible$ #n&ineer to order does not need to keep the price that lo"+ but it has difficulties estimatin& cost and time to produce$ 3onfi&ure to order 93t/: is the M3 option$ 3t/ serves the middle bet"een lu'ury and simple lo"6price products$ The frame"ork as proposed by 2uray 92000: can be used to cate&orise M3 manufacturers$ Thou&h this frame"ork is build upon the production cycle it is also useful for service oriented or&anisations$ 2uray looks at the point customers are involved and the type of modularity$ As M3 is bet"een mass production and customisation it can lean to"ards both sides$ 2uray concludes that more successful or&anisations tend to pick an M3 solution that looks like their old process$ There is no discussion that for the desi&n of M3 the placement of the customer order decouplin& point 2$ ;iterature 10

Mass customi0ation at TNT *ost *akketservice 93/2*: is important$ 2uray picks four points alon& the production process$ Traditional is the en&ineerin&6 to6order+ manufacture6to6order+ assemble6to6order+ and make6to6stock$ 4udber& and )ikner 9200@: has an overvie" of the different options as su&&ested by 2uray 920025 2000:+ 8ilmore and *ine 91..=:+ ;ampel and Min0ber& 91..<:+ and 2a (ilva 92001:$ They separate the en&ineerin& and production part as they can have separate 3/2*s$ As services are iterative they do not have a clear step"ise process it is much harder to pick a point from "here the customer is decoupled from the process$

MC and services
Thou&h many think of M3 as a strate&y for manufacturin& companies only+ several companies have sho"n that this is far from true$ *roducts make M3 more tan&ible and that is "hy M3 mi&ht &ive the impression that M3 is about products$ (ervices are not yet as standardi0ed as products "ere+ because most often service is listenin& to your customer and providin& him or her "ith the service heOshe asked for$ #'actly that is "hat M3 is deliverin& e'cept that it take into account that it needs to be done in a efficient "ay$ (ervice automation is one "ay of doin& this and soft"are products play an important role in this automation to handle the comple'ity$ 3ustomer needs and a dynamic environment are also drivers for or&anisations to chan&e to M3 in service or&anisations$ )hat is more important in service delivery than "ith product manufacturin& is the human factor$ The human factor is vital to the success of M3 as they not only have to understand the concept of M3+ they also need to have the skills for its implementation$ %T is a critical success factor for implementation of M3 in a service or&anisation 9*eters K (aidin+ 2000:$ *apathanassiou 9200@: made a recommendation for the service sector in the !C+ "hich is based upon studies on the financial sectorH 91: develop business models that reflect the interdependencies bet"een services and resources such as %T applications+ employeesP kno"led&e+ customersP re>uirements and behaviour+ 92: develop a modular %T applications architecture+ "ith each %T module supportin& product and servicesP modules+ 93: this "ill increase the de&ree of reusability and fle'ibility of technolo&ical capabilities and it "ill facilitate the development of economies of scale in soft"are production and the support of services production and mana&ement+ 9@: carry out process re6en&ineerin& studies so that business processes support the inte&ration of the or&anisations and their customers and take into consideration issues such as fle'ibility and reusability "hich are needed for implementin& M3$ *articular important business areas are those related "ith the ne" product development+ 95: understand and communicate the potential of the internet for M3$ %nnovation should be encoura&ed+ "hich coupled "ith the process re6en&ineerin& initiatives "ill yield hi&hly valuable application that benefit from the support of the employees+ the mana&ement and the customers+ 9<: prepare customers to support M3+ so that or&anisations "ill &ain their support for collaboration$ %dentification and encoura&ement of &roups of individuals "ho "ould be "illin& to participate in M3 development initiatives+ 9=: facilitate plannin& for M3 that "ould also en&a&e %(+ business staff and key employees+ 9?: or&anise employeesP trainin& about the concept of M3 its implementation and the role of the %nternet technolo&ies+ and 9.: or&anisations should facilitate the reconfi&uration of their resources+ by encoura&in& for e'ample employees to participate in the mana&ement of &roups of related services$

Benefits
/ne of the benefits is economies of inte&ration$ *iller et al$ 9200@: introduces economies of inte&ration as counterpart of economies of scale$ They find three sources of economies of inte&ration5 91: on postponin& some activities until an order is placed+ 92: on more precise information about market demands and 93: on the ability to increase loyalty by directly interactin& "ith each customer$ Mc3arthy 9200@: &ives several reasons "hy M3 can be used in modern or&anisations5 91: customers and their e'pectations have shifted from a broad base of uniformity and sameness to a net"ork of niche and hetero&eneous market re>uirements+ 92: fashions and customer preferences shift literally overni&ht+ and product life cycles have become si&nificantly shorter+ 93: assemble to order and the construction of product families are strate&ies that offer options and differentiation+ "hilst maintainin& performance in terms of cost+ >uality and delivery+ 9@: understandin& and satisfyin& specific customer e'pectations enables a company to 2$ ;iterature 11

Mass customi0ation at TNT *ost *akketservice achieve a better strate&ic fit "ith customersP lon&6term needs+ and 95: the ability to forecast and understand market opportunities is increased from the improved and fre>uent communication "ith customers CratochvMl and 3arson have found four benefits from M35 lo"er costs+ minimi0ation of losses+ increased loyalty 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 the complete live6cycle of a product cate&ory$ By reusin& components costs are reduced for ne" versions or other lines+ this overlaps partly "ith the easier up&rade$

Challenges
M3 does not come for free$ %t adds comple'ity to the system+ internally as "ell as e'ternally$ %nternal comple'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 of humans+ 92: the lack of customer kno"led&e of the product+ and 93: the customer i&norance about his individual needs 9Blecker K Abdelkafi+ 200<:$ #'ternal comple'ity may cause that customers are overflo"n "ith information and not able to make their choice$ This is called phenomena mass confusion by *iller$ *iller et al$ 9200@: point out that the promise of M3 "as not successful put into practice until 34M systems "ere mature enou&h to cope "ith the customer information$ )ith 34M systems in place the added internal comple'ity of M3 "as handled$ Thou&h it still "ill be a challen&e to confi&ure a 34M system in such a "ay that the or&ani0ation takes full advanta&e of M3$ ,iao et al$ 92003: looked at three technical challen&es5 ma'imi0in& reusability+ product platform and inte&rated product life6cycle$ They state the essence of M3 lies in the product and service developersP ability to perceive and capture latent market niches and subse>uently to develop technical capabilities to meet the diverse needs of tar&et customers$ )hich leads to three re>uirements5 time6to6 market 9>uick responsiveness:+ variety 9customisation:+ and economy of scale 9mass efficiency: Mac3arthy and Braba0on see the bi&&est challen&e in puttin& M3 in practice$ %n the first place they sho" in their research that there is not one solution for implementin& M3 as every situation is uni>ue$ The second challen&e is the effective order takin& and fulfilment processes 92003:$ *iller and MLller 9200@: first sum the dra"backs and limits of M3+ as named by other papers5 investment costs+ production plannin& and control+ product architectures and the >ualification of "orkers after they address their o"n "hich returns to the returns to the main reason to turn to M3 in the first place$ %n their vie" it is not useful to implement M3 at all "hen the customer is not "illin& to pay the premium price for meetin& their desires and "ishes$ %n the research conducted by *iller and MLller they sho" that in the foot"ear market there is a &reat potential for M3$ /ne remarkable thin& they note is that "hen askin& for that demand "ith a seven6point ;ikert scale they &ot mostly e'treme ans"ers+ "hile most these type of >uestions tend to re&ress to the middle$ *iller and MLller think part of this is due to poor kno"led&e of the intervie"ees of M3 and their needs+ so education of the customers is needed$ Many scholars point out that M3 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 M3 is about5 providin& a solution that fits the customer best$ Thou&h this is "hat scholars often see "hen lookin& at the M3 implementations in practice$

Research on MC
Cumar et al$ 9200=: analysed 112@ M3 publications that had been published in ournals and ma&a0ines since 1.?=+ "hen the term M3 "as first used by 2avis$ They sho" that M3 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 book e'ponential from 1..3 till 2003$ From 2003 till 2005 it stabili0ed and matured$ Cumar et al state that M3 diffused very "ell as articles "ere published in =@2 different ournals$ )hen a topic is interestin&+ other fields "ill claim part of it+ so the topic "ill be covered in ournals outside of the ori&inal field$ This can be seen in the M3 field "here only 23F of the articles is published in the top ten ournals$ Thou&h Cumar et al$ 2$ ;iterature 12

Mass customi0ation at TNT *ost *akketservice state that the M3 field is not yet devolvin&+ they have only their o"n belief that ans"ers that >uestion "ith a no$ Blecker states that there is a lack of research concernin& the effective implementation of M3 in practice 9200<:$ This hiatus "ill most likely be the effect of M3 bein& relatively ne" and only recent technolo&ical developments make effective use of M3 possible$ M3 does not stand on its o"n+ there are several linked research fields "ithin marketin&+ innovation+ and production$ Because M3 needs a different mindset in &eneral this mindset needs to be translated in those areas "here M3 impacts most$ A&ile manufacturin&+ focused factories+ lean manufacturin&+ customer driven manufacturin&+ fle'ibility+ one6of6a6kind manufacturin& and customer relationship mana&ement 9,iao et al$+ 20035 *iller et al$+ 200@: are related research areas as they all "ant to provide "ays of enablin& companies to increase cost efficiency continuously alon& the value chain "hile simultaneously increasin& the ability to react to chan&in& customersP needs stemmin& from hetero&eneous market demands$ )hen havin& an intimate relation "ith your customer+ they can be a &ood source for innovative ideas$ *lu&&in& in to this source takes one step further than M3 and is called open innovation$ 3hesbrou&h defines open innovation as a process "here firms commerciali0e e'ternal 9as "ell as internal: ideas by deployin& outside 9as "ell as in6house: path"ays to the market 92003:$ /pen innovation "ill be out of scope for this thesis+ but mi&ht be an opportunity after implementin& an M3 solution$

IT as enabler
M3 is only possible if customer inte&ration and co6creation processes are supported by ade>uate systems bein& able to reduce the hi&h transaction costs resultin& from deep customer6firm interaction 92uray+ 2002:$ Most important in reducin& the transaction costs is the internet$ #specially customer relationship mana&ement systems 934M: is useful in M3 to treat different customers differently 9*eppers+ 4o&ers+ K 2orf+ 1...:$ )ith 34M systems it is possible to store all interactions "ith customers and make use of them$ Also confi&urators are one of the keys to useful M3 as they &ive the sales force access to business rules and all the options the or&anisation has "ithin a fe" clicks 9CratochvMl K 3arson+ 2005:$ 3onfi&urators reduce the internal comple'ity Not only the application of %T+ but also its architecture can make %T an enabler for M3$ (ervice oriented architectures 9(/A: make possible that or&anisations can reor&anise its process and not havin& to re"rite complete pro&rams$

One to one mar!eting
As M3 delivers not a mass product it needs a different marketin& strate&y$ And as M3 focusses on satisfyin& the needs of this customer marketin& becomes not a one "ay communication+ but more a dialo&ue$ *eppers+ 4o&ers and 2orf &ive mana&ers a &uide in their -B4 tool kit 91...:$ They identify four steps that should be taken to &et started5 identify your customer+ differentiate your customer+ interactin& "ith your customer+ and customi0e your enterprise behaviour$ *epper et$ al$ sho" the issues to over think before &ettin& started like havin& an %T department that is not able to handle one6to6one marketin& and the or&ani0ational pu00le$ Also they &ive an attractive list of possible positive outcomes5 increased cross6sellin&+ reduced customer attrition+ hi&her levels of customer satisfaction+ and reduced transaction cost and faster cycle times$ /ne of the key principles they state is that implementation should take multiple steps+ not only the ones they identified+ but also &radually scalin& up$

2$ ;iterature

13

Mass customi0ation at TNT *ost *akketservice

"valuation frame#or!
A structured "ay to evaluate the cases is needed$ The different theories that have been discussed above "ill be 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 M3 is still debated+ the definition used "ithin the cases "ill be looked after$ #specially the fact if M3 delivers them only more variety or really &ives their customers "hat they need$ The one6to6 one marketin& approach of *epper+ 4o&ers and 2orf "ill be the &uideline to compare the cases in the marketin& area$ Their steps "ill compared "ith ho" the or&anisations introduced their M3 solution$ The "ay ho" the or&anisations constructed their M3 solutions "ill be evaluated "ith the typolo&y of !lrich and Tun&$ Also the client order decouplin& point "ill be evaluated$ 3ombinin& both of these factors "ill fit in the frame"ork of 2uray$ As %T infrastructure plays an important role in M3 also this aspect "ill be touched upon$ 2ependin& on ho" heavily the M3 solution depends on %T it can be elaborated more$ The use of information from systems like 34Ms "ill be one of the focus parts$ The results of the pro ects "ill be evaluated and the outcome "ill be divided into benefits and challen&es of the pro ects$ Theory 2uray 2efinition /ne6to6one marketin& %T Aspects 2ifferentiation+ cost+ and relationship option %dentify+ differentiate+ interactin&+ and customi0e behaviour FabricatorsOinvolversOmodulari0ersO assemblers 3onfi&urator+ 34M

Table 1: Framework summar,

2$ ;iterature

1@

Mass customi0ation at TNT *ost *akketservice

!. "ases
%n total 3= cases "ere evaluated on usefulness 9see appendi' 1 for a full list:$ The ma ority of the evaluated cases involved manufacturin& or&anisations and not the preferred service or&ani0ations$ The >uality of the cases differed from small descriptions "ithout a case specific evaluation of the introduced model and special issues "ith "ell documented cases$ Three cases are selected for further inspection5 Miadidas+ #'pedia and T6 online$ After introducin& the three cases the fourth section "ill summari0e ho" the cases fit the frame"ork$

Miadidas
Founded in 1.2@ by the brothers 2assler1 in 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+ 200<:$ Thou&h ori&inally a sports e>uipment producer also apparels+ fashion shoes and accessories are part of the Adidas branch$ Adidas is no" in essence a marketin& or&ani0ation rather than a producer$ All the lar&e brands have their 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 M3 in the industry5 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 M3 pro&ram+ ne't to that some start6ups offered M3 shoes on6line 9Moser et al$+ 200<5 *iller et al$+ 200@5 (ievanen K *eltonen+ 200<:$ Miadidas 9my individual Adidas: is the M3 concept of Adidas for shoes$ Moser points out that only Miadidas serves three identified aspects5 personalisation+ fit and performance 9200<:$ Most other lar&e brands offer only personalisation$ Nike%2+ the M3 option from Nike on the other hand &oes beyond shoes and also offers other customi0able products like clothin&$ Thou&h the shoe has to be made to the customer order its process is not much different form producin& the in6line shoe$ %t is produced in the same factory in a different department 9formally used to produce the prototypes:$ This is a common practice in M3 production facilities 9Cotha+ 1..<:$ Miadidas "as launched in several steps bet"een 2000 and 200<$ %nternally it "as lon& re&arded as a marketin& tool "hich had its impact on the diffusion$ The first phase 9pilot: "as to offer only football shoes based upon the *redator *recision$ The customisation offer "as done on different events in different countries in 2000$ )ith a 362 foot scanner and advanced soft"are the feet of the buyer "as scanned by trained Adidas employees$ )ith the second phase also a runnin& and a tennis shoe "as added 9Moser et al$+ 200<: and the real roll6out "as done to &et retailers involved$ The 100 selected retailers &ot less complicated hard"are to measure the feet+ but the soft"are &ot more advanced$ An indoor 9basketball: shoe "as added in the third phase$ %n the ne't phase Adidas rolled out special Adidas shops "ith the M3 option$ Thou&h Miadidas "as in the first place not an online option+ it opened its Miadidas "eb store in 200<$ 3ustomers could customi0e and order their shoe online$ At this moment the Miadidas online store offers basketball+ &olf+ runnin&+ soccer+ tennis and fashion shoes$ 1= different sport shoe models and 10 fashion models are available "ith each several customisation options 9Dmiadidas "ebsite+E 2010:$

#rame$ork
Duray framework
As Adidas uses the prefabricated parts to assemble the Miadidas shoe+ the modularity type is a component s"appin& modularity+ thou&h also cut6to6fit mi&ht be used for the more e'treme si0es$ These types fit in the assembly and use phases of the production cycle$ The customers are involved before the assembly of the shoe$ This combined makes Miadidas an assembler in the classification of 2uray$ *iller et al$ place the decouplin& point of Miadidas at the manufacturin& also before the assembly 9200@:$ As Adidas is a mass producer of athlete shoes it is a lo&ical confi&uration as assemblers is the nearest confi&uration to mass
1 After the second "orld "ar the company "as split and both brothers "ent their o"n "ay$ The other+ only sli&htly less successful+ company is *uma+ Adolf 2assler founded Adidas$

3$ 3ases

15

Mass customi0ation at TNT *ost *akketservice production 92uray+ 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 noted that the Miadidas does not pass the test of scalability 9Moser et al$+ 200<:$ As Adidas uses the former prototype production locations and is limited by the fact that those hi&her skilled people are needed to produce the shoe$ Also in the desi&n of the shoe M3 is only a minor consideration$ This "ill prevent Miadidas from penetratin& lar&e markets$ Also the cost of customi0ed shoes is not in line "ith the mass produced version of the shoe+ also here the desi&n of the process is to blame$ The last part is the relationship option also here Adidas does not takes full advanta&e of the possibilities$ Adidas must been usin& a different definition of M3 for desi&nin& the process$ The fact that internally the pro ect "as seen as a marketin& tool "ill be lar&ely to blame$

One-to-one marketing
There is the risk that customers have too many choices+ especially online "here the customer needs to kno" his or her feet pretty &ood$ The result of choices about colour combinations are immediately visible on the screen+ but kno"led&e about "hat type of heel paddin& you need is needed$ Buyin& online mi&ht not be the best option "hen lackin& this information$ Thou&h Adidas limited the colour choice options there still are many options to choose from and the customer has to &o trou&h every step to kno" "hat his or her options are$ Adidas sa" Miadidas as a marketin& tool+ but mostly a one6"ay communication medium$ There has not much been done "ith the purchase data$ Adidas did some &ood research about the avera&e customer$ )ith their M3 pro&ram it is the first time they interact proactive "ith the individual customer$ Adidas differentiated bet"een their top customers and their mass by placin& an e'tra product in the market as Miadidas is$ Before Miadidas Adidas had a take6it6or6leave6it interaction "ith its customers+ only top athletes could &et a custom shoe+ thou&h this "as only for marketin& reasons$ )ith the introduction of Miadidas the customer has much more choice and Adidas helps them in makin& that choice$ The behaviour of Adidas to"ards the customer has only chan&ed in the offerin&$ Buyin& sports shoes is on avera&e t"ice per year$ As *eppers et al$ su&&ested Adidas started small and build upon the e'perience of previous phases 91...:$

IT
%n order to support the choice of the clients Adidas developed every step a ne" system "ith the user in mind$ For the pilot they made a pro&ram that "as sophisticated but hard to handle+ thou&h only special trained Adidas employees had to use it$ )hen the confi&urator also had to be used by the retailers it became more user friendly$ 3urrently the customer itself has to do its o"n confi&uration and the confi&urator &uides the user throu&h the process$

Benefits
• • • • • • • • • As a marketin& tool it delivered Adidas a lot of attention+ first mover advanta&e+ stron& learnin& curve efficiencies 9Moser et al$+ 200<:+ ade>uate financial resources for financin& future &ro"th+ close customer contact at the Miadidas shop unit+ less fashion risks+ discounts+ and inventory costs+ Miadidas is the only full customisation business in the athletic shoe industry 9three customisation optionsH fit+ performance+ and aesthetic desi&n:+ possibility to build stron& customer relationships+ access to a&&re&ated market information can continuously improve inline assortment+ opportunity to turn mass customisation platform into a ma or product plannin& and variety mana&ement tool for the entire division$ 1<

3$ 3ases

Mass customi0ation at TNT *ost *akketservice

Challenges
• • • • • • • • • • • • • Theory 2uray 2efinition /ne6to6one marketin& %T (ellin& the pro ect internally+ makin& the production modular 9Ber&er+ 2003:+ addin& 34M 9Ber&er+ 2003:+ no confi&uration system available for online sales 9Moser et al$+ 200<:+ no relationship mana&ement system implemented to facilitate re6orders+ dependence on e'ternal partners in manufacturin& and lo&istics 9scalability:+ hi&h lo&istic costs due to manufacturin& in Asia+ unstable processes+ unsolved conflicts from inte&ratin& the mass customisation system in the inline system+ unkno"n market potential for custom foot"ear+ potentially limited "illin&ness6to6pay for custom shoes+ rather lon& delivery times may hinder &ro"th "hen ne" customer se&ments are tar&eted+ customisation is losin& differentiation appeal as competitors create similar offerin&s+ potential channel conflicts about o"nership of customer data$ 3onclusion Assembler No scalability %dentify+ differentiate+ interactin& 3onfi&urator+ no 34M

Table 2: 0ummar, o1 the &ia+i+as case

"$pedia
Based upon 4N&lein et al$ 9200<:$ The travel industry has chan&ed much due to the internet$ All6in travels made up the market+ but due to increasin& transparency customers chose to shop around$ (uppliers like hotels and airlines bypassed travel a&ents via the internet and also ne" entrants used the internet to offer the same travels for less "hile they did not need to hire real estate and people to fill them$ These developments made the travel industry in search for solutions$ (ome like T!% bou&ht their o"n planes and hotels and thereby decreasin& the price transparency$ /thers found the solution in an M3 variant5 dynamic6packa&in&$ #'pedia is one of the dynamic6packa&in& companies$ #'pedia is an online travel a&ent that offers ne't to all6in and last6minute also individual travels$ #'pedia uses their clickKmi' to let customers customi0e their travel offer$ This is standard a combination of hotel+ fli&ht and rent car$ *er item there are parameters that can be ad usted to the needs of the customer$ %t is also possible to add e'tra option like insurance+ theatre performance or si&ht seein& tour$ %n order to let the customer choose their mi' of options #'pedia needs to interact "ith its partnerGs databases to check for availability$ The business lo&ic in the internet bookin& en&ine is responsible for addin& penalties or savin&s to the order$

Literature
Duray framework
#'pedia uses the assembly phase as decouplin& point$ %t also uses modularity types that fit in the assembly phase$ #'pedia is an assembler accordin& to the frame"ork of 2uray$ As Cotha 91..<: already described also #'pedia keeps its previous business model "ith all6in travels$

3$ 3ases

1=

Mass customi0ation at TNT *ost *akketservice

Definition
Thou&h the variety is limited by the contracts that #'pedia has the possibilities "ithin that offerin& are theoretically not limited by the desi&n$ #'pedia only sho"s sensible options to pick from+ so "hen you fly to Barcelona 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 that the 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 market research 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 every customer is still the same+ all customers &et all options to choose from$ (o it makes no difference "hen you book a beach or a cultural trip to Barcelona+ you &et the same possible additions$ )hen lookin& at the interaction "ith the customer it is clear that the customers no" have somethin& to say+ thou&h the focus is on sellin& 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 M3 concept$ %t connects the customer "ith the suppliers 94N&elein et al$+ 200<:$ This connection is vital for &ivin& customers correct data and not havin& double bookin&s$ #'pedia does not make &ood use of 34M soft"are as they do not personalise the offerin& they sho"$

Benefits
• • • • • • • • 2ynamic6packa&in& is able to fulfil the customers needs in a fle'ible manner$ Follo"in& the trend of more individuali0ation 9200<:+ "ith the help of dynamic6packa&in& it is possible to e'plore the customer needs$ !se of customer data can overcome declinin& loyalty of customers+ by offerin& a more personalised offer it is possible to ask a premium+ thou&h it is possible for customers to find the separate parts of the offer cheaper online dynamic6 packa&in& has the advance of keepin& the insurance of the travel a&ent+ due to better customer kno"led&e it is possible to reduce the risk costs+ "ith M3 techni>ues it is possible "ith small use of personnel to reach out to niche markets+ a travel is a information product "hich favours online services in &eneral but dynamic6packa&in& in special+ fle'ible inte&ration of lo"6costs airlines makes it possible to compete "ith charter fli&ht based all6in offerin&s$

Challenges
• -i&her mar&ins are difficult to e'plain in a transparent market "here customers can compare easily+ • there is the risk that customers &et over"helmed "ith options and e'it the confi&uration process+ • for lar&er suppliers dynamic6packa&in& the look6to6book rate "ill be lo"er+ • hi&h development costs for databases and front6end systems+ • le&al aspects as responsibility for the performance of all suppliers+ • the trend is that youn& people or&ani0e their o"n travels$ The last point is &eneral to all travel a&ents and not specific a threat to dynamic6packa&in& alone$

3$ 3ases

1?

Mass customi0ation at TNT *ost *akketservice Theory 2uray 2efinition /ne6to6one marketin& %T 3onclusion Assembler All three options present No behaviour and fe" interaction No full use of 34M

Table *: 0ummar, o1 the 23pe+ia case

T online
Based upon -afenbrQdl and MLller 9200<:$ T6online is a provider of internet+ television and telephone over the cable in 8ermany to 10 million households$ Thou&h cable "as in the first place desi&ned for transmission of analo&ue television si&nals$ 8ermany plans to replace analo&ue television for 2i&ital Bideo Broadcastin& 92BB: techni>ues$ T6online needs to ad ust its offerin& and due to ne" technolo&ies available it "ill be possible to ad ust the offerin& to individual preferences$ T6online calls this product Dmy personal channelE$ /ne of the technolo&ies that makes this possible are the *B4 set6top bo'es+ "hich are computers for supportin& the TB "ith functions like time6shift$ Also electronic pro&ram &uides help "ith the choice of the vie"er+ these are searchable and in combination "ith the *B4s it is possible to record for instance every (unday a Top 8ear episode$ Also in combination "ith internet+ interaction "ith the TB is possible$ %n addition to this it "ill be possible to &et video on demand 9B/2: to the TB "here the vie"er &ets access to online film rental services and can choose to vie" "hatever he likes$ T6online developed in cooperation "ith Fu itsu (iemens an o"n *B4 "ith inte&ration of its online B/2 portal T6vision$ The idea is to have the *B4 as centre of the livin& room$ T6online &ot Bundesli&a broadcast ri&hts and contracts "ith lar&e film studios as M8M+ !niversal and 2ream"orks$ %n the premium subscription Ddirect RE the *B4 "ill do"nload on the back&round 30 top films "hich can be unlocked to vie" ri&ht a"ay$ The market develops in a "ay that customers "ant more choice$ Because of the lar&e pro&ram offerin& that broadcasters have the risk of confusin& the customer is lar&e$ The customer needs &uidance "ith its pro&ram choice$

Literature
Duray framework
(ectional modularity is used for my personal channel$ The customisation takes place at the use phase of the process$ This can clearly be called an assembler$ As the previous confi&uration of T6online "as a mass deliverer this is also the most lo&ical option$

One-to-one marketing
T6online does not identify its customers as it is the transmitter of the channels$ %t is not possible for T6online to see "hat the confi&uration of the customer is$ Also its vie"in& habits can not be lo&&ed+ thou&h this is valuable data$ #very customer &et the choice to make their o"n channel$ The differentiation is in the confi&uration that the customer makes$ %nteraction "ith T6online is via the confi&urator$ This is done by the customer and the TB acts as interface$ The process chan&es not only for the customer also for T6online the process "ill chan&e$ They "ill need to adapt to these chan&es$ %t "ill be possible to char&e customers for "hat they vie"+ not for "hat they are able to vie"$

3$ 3ases

1.

Mass customi0ation at TNT *ost *akketservice

IT
My personal channel is made possible by a soft"are confi&urator+ but as not every TB has the hard"are to do so set6top6bo'es "ere used to brid&e this$ The possibility to interact "ith the customer of the internet is used to bypass the one6"ay desi&n of television$ Thou&h kno"in& "hich pro&rams someone vie"s &ives &ood opportunities 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 individuali0ation trend$ No standard yet+ the market &ets less transparent+ the learnin& curve for customers+ thou&h the pro&ram >ueue can be customi0ed+ 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$ 3onclusion Assembler Applies 8ood customisation of enterprise behaviour+ no &ood interaction No 34M usa&e

Challenges
• • • • • • Theory 2uray 2efinition /ne6to6one marketin& %T

Table 4: 0ummar, o1 the T'online case

3$ 3ases

20

Mass customi0ation at TNT *ost *akketservice

%ummary
%mplementations are su&&ested to be done step by step 9*eppers et al$+ 1...:$ Miadidas is the most clear e'ample as the M3 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 advanced tools "ithout an easy to use interface$ )hen enou&h e'perience is collected also easier to use and cheaper tools are used "hich makes "ay for franchise takers to take the orders themselves$ 3urrently the customer performs the customisation via internet &uided by a "i0ard$ The market drives the M3 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 M3 e'ists other"ise the customers "ill not be "illin& to pay the premium$ There are several pitfalls for M3$ As M3 is about information it is important to have a "ell "orkin& %T back6 end$ %nformation is key in M3 and the %T makes the information load mana&eable$ Not only a &ood 34M packa&e is need for storin& and mana&in& the customer information also a &ood confi&urator is needed for either the online proposition or the sales force$ The couplin& of these systems and the #4* systems make it possible that the costs of M3 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$ #specially illiteracy in Asia is a lar&e problem for producin& M3 shoes as a lar&e part of the "orkforce can not read the production instructions$ The internal comple'ity can not be handled by the current "ork force$ Also the "ork flo"s of the mass production and M3 are separated+ thou&h the desi&n of the shoes is the same$ )hen desi&nin& a M3 process scalability is an important aspect$ %n the e'treme cases uni>ue products can be produced as easy as one million the same products "ithout any a different cost structure$ The #'pedia and T6 online 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 is overlooked$ %t is also a "ay to sell the concept internally to overcome the resistance problem$ %nternal resistance 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 for alternative product offerin&s$

3$ 3ases

21

Mass customi0ation at TNT *ost *akketservice

%. 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 a packa&e$ For consumers there are three options parcels "ith a "ei&ht less than 10 kilo&rams "ith or "ithout insurance till S 500 and parcels "ith a "ei&ht of more than 30 kilo&rams$ At this moment T** ad usts its specifications to lar&e customers$ /n the other side it delivers the same service to all its customers+ also for almost all lar&e customers$ ;ar&e customers are the only ones that &et direct access to the A*% to implement the order preparation in their #4* or 34M packa&e$ For smaller contract customers the *arcel"are solutions are available dependin& on si0e the "eb or desktop version is recommended$ 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 no endurin& relationship "ith its lo"est se&ment+ the smallest senders that send only a packa&e ones in a "hile T** does not kno" much about these customers$ The customers that have a contract "ith T** are trackable in the 34M "hich lo&s the interactions "ith this customers$ T** "ants also be able to analyse their lo"est se&ment of irre&ular senders$ %n order to do so they have developed online postkantoor 9post office: "here these customers can lo&6in$ As most of these customers are more re&ular also receivers of the packa&es track and trace "ill also be part of online postkantoor$ At this moment T** does not use analyses of site traffic to ad ust its online offerin&$ 3lient se&ment (oft"are solution Non6contract *arcy (mall *arcel"are )eb Medium ;ar&e *arcel"are 2esktop -ome build

Table 5: )urrent segmentation o1 T## s clients 3urrently *arcel"are offers the same interface to all its customers "hich leads to an overload of options 9see fi&ure @:$ %n order to be able to reuse elements of *arcel"are in online postkantoor T** has divided these soft"are into services$ Thou&h the &oal is not to have a complete (/A architecture$ A pra&matic approach is taken that "hen a re>uested solution is not possible "ithin the current service offerin& a ne" specific solution "ill be made$ Ne&otiations of T** "ith its sendin& customers is dominated by the party that has most po"er$ #ither the order volume of the customer makes T** ad ust to their specifications or it is T** "ho is usin& its si0e and lack of competition to make their customers ad ust to T**s specifications$ *orterGs supplier and buyers bar&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& the rates makes T** more efficient$ 4aisin& efficiency is not only in the interest of T** but also of the receiver$ 3ost leadership is the focus for T** on the operations side$ There are different options of usin& M3 for T**$ As T** is an operation e'cellence or&anisation also its M3 solution should lean more to"ards mass production than to"ards customisation$ This means havin& a decouplin& point late in the process$ %t also means usin& a type of modulari0ation "hich fits in late in the process 92uray+ 200@:$ Ne't to the ne" M3 process the old mass production process can still be in place and they mi&ht have learnin& effects on each other 9Cotha+ 1..<:$ The operational process has lar&e possibilities for individual approaches due to the fact that every packa&e needs to be delivered physical$ Thou&h the trend at T** is that no ne" deliverers are employed+ T** no" "orks "ith sub6contractors that employ the deliverers$ This "ill make it more difficult for T** to train these deliverers$ At this moment information that &oes "ith the packa&e is static as it should also be readable on the packa&e itself+ this reduces options$ @$ TNT post pakketservice 22

Mass customi0ation at TNT *ost *akketservice 4elyin& on bar6codes 9these are already on the packa&e: or 4F%2 chips mi&ht solve this problem+ but "ill need a mind6shift as "ell ad ustments in the information stora&e$

Figure 4: 0creenshot #arcelware (source: TNT!

&or!shop
%n order to &et a realistic idea about "hat M3 can do for T** a "orkshop "as held at the head office of T** in -oofddorp$ %nvited "ere a mi' of people from the %3T and marketin& department$ Four %3T and three marketin& representatives attended the t"o hour "orkshop on 23 (eptember 2010$ The set6up "as to present three theories5 the definition by *iller and MLller+ the 2uray frame"ork+ and one6to6one marketin& as proposed by *eppers+ 4o&ers and 2orf$ %n order to &et a feelin& "hat the sub ect 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 2utch as they "ere presented$ As input for the "orkshop the &ap tool from the *eppers+ 4o&ers and 2orf 91...: "as sent 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$ 2urin& the session there "as &reat interest in the sub ect and already before the statements there "as a lively discussion$ 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 receiver mi&ht &et more influence in the process of "hich transporter "ill be used$ %n that scenario the end6user needs focus$ 3oncluded durin& the discussion "as that both need to have separate strate&ies$ *eppers+ 4o&ers and 2orf 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

Mass customi0ation at TNT *ost *akketservice

&ne'to'one marketing gap tool
The &ap tool of *eppers+ 4o&ers and 2orf 91...: consists of 1? >uestions concernin& seven different aspects of one6to6one marketin& 9appendi' 3:$ The >uestions are all stated in the form in "hat de&ree does the statement in the >uestion correspond "ith the current situation$ The &ap tool "ill &ive insi&ht in ho" the company sees itself and is meant to be a startin& point "hen thinkin& about one6to6one marketin&$ (even people have anonymous submitted their vie"$ To process the collected data an arbitrarily chosen "ei&ht "as connected to the ans"er$ The distance of the &aps is not to be determined by its score+ therefore the scores are not sho"n in the results$ )hen the correspondents chose the ans"er representin& the lar&est &ap the ans"er &ot score 3$ )hen the correspondent chose the smallest &ap ans"er it &ot score 0$ The ans"ers in bet"een &ot respectively 1 and 2 as score$ The outcomes "ere avera&ed over the correspondents and the sub ects 926@ >uestions per sub ect:$ The most strikin& outcome 9see fi&ure 5 and appendi' 3 for a more detailed result: is that the lar&est &ap is at the kno"led&e strate&y$ The >uestions asked handled about collectin&+ usin& and combinin& customer data $ The kno"led&e strate&y is most important durin& the data collectin& "hich is part of the first step of the one6 to6one marketin& tool kit+ identifyin& the customer$ Thou&h the results sho" that the process has the smallest perceived &ap this also needs "ork as do all other areas$ The medians of all >uestions "as three e'cept the first t"o that handled the process and >uestion five about kno"led&e strate&y that scored a four$

Figure 5: 6esults o1 gap tool (source: author s own illustration !

@$ TNT post pakketservice

2@

Mass customi0ation at TNT *ost *akketservice

(esults
The "orkshop sho"ed a number of lessons that T** should bear in mind "hen proceedin&$ The &ap tool sho"ed that the kno"led&e strate&y &ap is the one needin& most attention$ 2urin& the discussion the first step+ identifyin& your customer by collectin& data+ "as easily skipped$ %t "as easily assumed and even e'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 M3 assumptions about one of the customers probably is "ron&$ From the >uestions raised it became clear that M3 has a &reat difficulty in e'plainin& "hat e'actly is M3$ Althou&h brin&in& up the definition to undermine that problem$ The definition of *iller and MLller 9200@: is lar&e and the settin& makes it difficult to understand it at first si&ht$ Also the different options make it difficult$ For presentations purposes this definition mi&ht not be the best choice$ Also the 2uray frame"ork needs more study upfront to understand$ /ne discussion "as about "hether T** its service is part of the M3 proposition of its clients or T** its service itself should make M3 possible$ ;inked "ith this discussion is "ho is the customer that T** should base 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 M3 it is important to kno" "ho you define as customer in order to collect data about them$ The resultin& conclusion of the discussion that the market "ill need time to take the end user as customer$ )ith takin& the receiverGs needs into account also the sender "ill profit+ thou&h implementation "ill be difficult as lon& as the sender collects the payment for T** of the receiver$ (o the sender needs also to be considered in lookin& for a M3 proposition$

@$ TNT post pakketservice

25

Mass customi0ation at TNT *ost *akketservice

). "onclusion an* *iscussion
The literature and case studies &ive helpful ans"ers to the research >uestion$ T** can make use of M3 in multiple "ays$ %mportant is to not think that M3 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 a helpful &uideline for makin& those steps$ T** should start collectin& data of its customers$ Thou&h the discussion about "ho actually is the customer remains$ As resulted from the "orkshop the first focus should be on the sender side+ but should shift to the end6user+ the receiver$ The results of the &ap tool sho" that data collectin& and handlin& is at this moment a "eak point at T**$ As this is the startin& point the first steps should be made in this direction$ The to be desi&ned ne" online postkantoor mi&ht be a &ood opportunity to make first steps$ This confi&urator should be input for a 34M system$ %t can collect data from both sender and receiver$ 3urrently additional services are offered to customers$ Makin& the infrastructure fle'ible enou&h to handle every possible combination "ill be an other option to start from$ The frame"ork of 2uray learns that an or&anisation like T** should look at assembler options to implement M3$ 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& the desi&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& M3 implementations "ere found$ Thou&h literature does address challen&es and pitfalls$ /ne repeatin& issue is that M3 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 M3 solutions "ill be different$ (econd remark is that the M3 research field is still under heavy development$ Not even the definition of M3 has complete consensus$ *artly because of the difference bet"een theory and practice there is still a lot to be researched$ (everal M3 solutions "ere not possible before the introduction of 34M packa&es "ith fle'ible inte&ration "ith other applications$ The impact is that theoretical concepts are only recently or even not yet to be empirical validated$ Third it should be noted that lo&istics has it o"n dynamics+ different from manufacturin& and service delivery$ The lack of decent e'amples of M3 implementations "ithin a lo&istical or&anisation makes it harder to conclude that the su&&estions also hold for T**$ Also is there a lack of "ell documented service e'amples$ %n the ne't para&raphs some implementation e'amples "ill be discussed$ The ne't para&raph "ill take the sender 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$ (i0e+ "ei&ht and value all have some impact and are kno"n to the sender before the packa&e is collected$ An application can be that the sender &ives these parameters as an input for the sendin&$ The parameters can be used 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 delivery spot and time can be one of these possibilities$ The information if the receiver is at home is valuable information and the receiver mi&ht be "illin& to share that information as he &ets a faster delivery$ %n a later stadium it "ould be preferable that the sender determines the sendin& options$ %n that case the price can be variable on parameters the receiver &ives$ For instance "hen the receiver orders from different parties he mi&ht be able to combine them on a date and time$ Most important "ill be to listen to the receiver more and take advanta&e of its needs$

5$ 3onclusion and discussion

2<

Mass customi0ation at TNT *ost *akketservice

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2=

Mass customi0ation at TNT *ost *akketservice intensity+ and ta'onomic frame"orks$ 7nternational :ournal o1 Fle3ible &anu1acturing 0,stems + 199@:+ <3=6<<5$ ;ampel+ ,$+ K Mint0ber&+ -$ 91..<:$ 3ustomi0in& 3ustomi0ation$ 0loan &anagement 6e%iew+ *=91:+ 21630$ Mac3arthy+ B$+ K Braba0on+ *$ 92003:$ %n the business of mass customisation$ &anu1acturing 2ngineer+ =29@:+ 30633$ Mc3arthy+ %$ *$ 9200@:$ The "hat+ "hy and ho" of mass customi0ation$ #ro+uction #lanning . )ontrol: The &anagement o1 <perations+ 159@:+ 3@=$ miadidas "ebsite$ 92010:$ $ 4etrieved ,uly 1.+ 2010+ from httpHOO"""$miadidas$comO Mint0ber&+ -$ 91.??:$ 8eneric strate&iesH to"ard a comprehensive frame"ork$ A+%ances in strategic management+ 591:+ 1U<=$ Moser+ C$+ Muller+ M$+ K *iller+ F$ T$ 9200<:$ Transformin& mass customisation from a marketin& instrument to a sustainable business model at Adidas$ 7nternational :ournal o1 &ass )ustomisation+ 19@:+ @<3 6 @=.$ *apathanassiou+ #$ 9200@:$ Mass customisationH Mana&ement approaches and internet opportunities in the financial sector in the !C$ 7nternational :ournal o1 7n1ormation &anagement+ 2495:+ 3?=63..$ *eppers+ 2$+ 4o&ers+ M$+ K 2orf+ B$ 91...:$ %s your company ready for one6to6one marketin&I "ar%ar+ business re%iew+ ;;91:+ 15161<0$ *eters+ ;$+ K (aidin+ -$ 92000:$ %T and the mass customi0ation of servicesH The challen&e of implementation$ 7nternational :ournal o1 7n1ormation &anagement+ 2092:+ 103611.$ *iller+ F$ T$ 9200=:$ /bservations on the present and future of mass customi0ation$ 7nternational :ournal o1 Fle3ible &anu1acturing 0,stems+ 199@:+ <306<3<$ *iller+ F$ T$+ Moeslein+ C$+ K (totko+ 3$ M$ 9200@:$ 2oes mass customi0ation payI  An economic approach to evaluate customer inte&ration$ #ro+uction #lanning . )ontrol: The &anagement o1 <perations+ 159@:+ @35$ *iller+ F$ T$+ K MLller+ M$ 9200@:$ A ne" marketin& approach to mass customisation$ 7nternational :ournal o1 )omputer 7ntegrate+ &anu1acturing+ 1;9=:+ 5?365.3$ *ine+ B$ ,$ 91..?:$ Mass 3ustomisation U 2ie )ettbe"erbsstrate&ie der Vukunft$ %n >un+enin+i%i+uelle <$ 4eferences 2?

Mass customi0ation at TNT *ost *akketservice &assenpro+uktion$ MunchenOBienna$ *ine+ B$ ,$+ K 2avis+ ($ 91..3:$ &ass customization: the new 1rontier in business competition$ -arvard Business *ress$ *ine+ B$ ,$+ *eppers+ 2$+ K 4o&ers+ M$ 91..5:$ 2o Jou )ant to Ceep Jour 3ustomers ForeverI "ar%ar+ (usiness 6e%iew+ ;*92:+ 103611@$ *orter+ M$ #$ 91.?5:$ )ompetiti%e a+%antage: creating an+ sustaining superior per1ormance: with a new intro+uction$ Free *ress$ 4N&elein+ 2$+ 4odrM&ue0+ M$+ K MLller+ M$ 9200<:$ 2ynamic *acka&in&H Mass 3ustomi0ation in der 4eisebranche$ %n &ass )ustomization un+ >un+enintegration: Neue ?ege zum inno%ati%en #ro+ukt $ (ymposion *ublishin&$ 4udber&+ M$+ K )ikner+ ,$ 9200@:$ Mass customi0ation in terms of the customer order decouplin& point$ #ro+uction #lanning . )ontrol: The &anagement o1 <perations+ 159@:+ @@5$ (ievanen+ M$+ K *eltonen+ ;$ 9200<:$ Mass customisin& foot"earH the leftW foot company case$ 7nternational :ournal o1 &ass )ustomisation+ 19@:+ @?0 6 @.1$ Thuiswinkel marktmonitor 2009$ 92010:$ $ 4otterdamH Blau" research$ TNT Annual report 2009$ 92010:$ $ AmsterdamH TNT NB$ 4etrieved from httpHOO&roup$tnt$comOannualreportsOannualreport0.Oinde'$html TNT fact sheet 200?$ 9200.:$ $ TNT NB$ Treacy+ M$+ K )iersema+ F$ 91..=:$ The +iscipline o1 market lea+ers: )hoose ,our customers/ narrow ,our 1ocus/ +ominate ,our market$ Basic Books$ !lrich+ C$+ K Tun&+ C$ 91..1:$ Fundamentals of product modularity$ %n American 0ociet, o1 &echanical 2ngineers/ 9esign 2ngineering 9i%ision (#ublication! 92 9Bol$ 3.+ pp$ =36=.:$ )ikstrNm+ ($ 91..<:$ Balue creation by company6consumer interaction$ :ournal o1 &arketing &anagement+ 1295:+ 35.U3=@$ Jassine+ A$+ Cim+ C$+ 4oemer+ T$+ K -ol"e&+ M$ 9200@:$ %nvesti&atin& the role of %T in customi0ed product desi&n$ #ro+uction #lanning an+ )ontrol+ 159@:+ @226@3@$

<$ 4eferences

2.

Mass customi0ation at TNT *ost *akketservice

,. -ppen*ices
'ppendi$ () case studies
Case APC Cmax.com Creo Custom Fit Dolzer D !an" #t$icon #x%e&ia F.+. Smi&t$ getCustom ,ienoH.ve ic3& i&)o-n 01#A 0n/0DO 12z insurance 13c$eDirect +an&s4 en& custom +#C s.stems +e2t 2oot +evi Strauss +inel 6arelli6otori 6i A&i&as 9atural gas in&ustr. 9e-s%a%er in&ustr. 90!D 9i"e Possen.com 8e2lect.com Socital +i2e Ste%%en-ol2 Strei2 ),0 Fri&a.s )o.ota )uro )ailor oots Source Hvam 2006 Piller 2003 Piller 2003 Ong 2008 Piller 2003 Piller 2003 Piller 2003 Piller 2006 Hvam 2006 Piller 2003 Dean 200( Piller 2003 /an As%eren 2008 Piller 2003 Piller 2006 Piller 2003 Piller 2006 Piller 2003 Piller 2006 Piller 2003 Siev5nen 2006 Piller 2003 Piller 2006 Forza 2006 Piller 2003 Fogliatto 200( Fran"e 200: 1ot$a ;::6 Piller 2003 Piller 2003 Piller 2003 Piller 2003 6ozer 2006 Piller 2003 +as$le. 2000 A&ler ;::: Siev5nen 2006 Piller 2003

'acso 200(

)$omson 2006

Smit$ 200*

Piller 2006

!erger7 C 2003

6ozer 2006

H!8 case 2002

Piller 2006

=$ Appendices

30

Mass customi0ation at TNT *ost *akketservice

'ppendi$ *) statements +Dutch,
(tellin& 1 Mass customisation betekent voor iedere klant de0elfde dienst+ nameli k een op maat &esneden oplossin& (tellin& 2 -et proces van T** is niet modulair en leent 0ich dus niet voor mass customisation (tellin& 3 %eder pakket is &eli k+ vandaar eenheidspri 0en (tellin& @ 2e be0or&er is de eni&e fle'ibiliteit in het proces (tellin& 5 Boor mass customisation is een radicale veranderin& nodi& binnen T** (tellin& < 2e ontvan&er is de betaler+ dus dient het proces rond hemOhaar op&e0et te "orden (tellin& = -et be0or&adres is de meest "aardevolle data (tellin& ? 2e consumentenmarkt is structureel anders dan de businessmarkt (tellin& . /n0e &rootste klanten 0i n de meest "aardevolle klanten (tellin& 10 3onsumenten 0i n niet in staat om &oede keu0es te maken (tellin& 11 2e inhoud van het pakket bepaalt de &e"enste ver0endopties (tellin& 12 )i "eten beter "at de klant nodi& heeft dan de klant 0elf

=$ Appendices

31

Mass customi0ation at TNT *ost *akketservice

'ppendi$ -) results gap tool
TuestionsH 1$ 2oes the company have established >uality6assurance processesI 2$ Are the companyGs business processes customer6centricI 3$ 2oes the company take customersG needs into consideration "hen selectin& and implementin& technolo&y @$ 2oes the company provide its employees "ith technolo&y that enables them to help customersI 5$ 2oes the company maintain a strate&y for collectin& and usin& information about customersI <$ -o" effectively does the company combine information on customers "ith its e'periences to &enerate kno"led&e about its customersI =$ -o" does the company select its partnersI ?$ 2oes the company understand the relationships amon& its customers and partnersI .$ -o" effectively does the company differentiate its customersI 10$ )hat steps has the company taken to improve the total e'perience of its customersI 11$ -o" effectively does the company measure and react to customersG e'pectationsI 12$ -o" effectively does the company understand and anticipate customersG behaviorI 13$ To "hat de&ree are employees empo"ered to make decisions in favor of the customerI 1@$ -as the company formally linked employeesG re"ards "ith customer6centric behaviorI 15$ To "hat e'tent does the company understand ho" customers affect the or&ani0ationI 1<$ -o" much influence do customersG needs have on the companyGs products and servicesI 1=$ -o" effectively does the company build individuali0ed marketin& pro&ramsI 1?$ -o" a"are is the company of other or&ani0ationsG approaches to buildin& customer relationshipsI 4esults

=$ Appendices

32