What is modularization in supply chain management?
Supply chain management obtains raw materials (inputs), turns them into useful products and distributes them to customers (outputs). Modularization focuses on the input side of this process; rather than use single units called components, it adopts a process that uses subsystems integrated into modules.ComponentsFor example, a refrigerator manufacturer using the component process would use inputs of each item needed. This would entail obtaining coils, seals, Thermostats, and other individual items and creating the final product by assembling each component.ModulesUsing the same example, modularization would enable the refrigerator manufacturer to work with only three input suppliers: the freezer module, the refrigerator module and the case module. In this case, rather than dealing with dozens of suppliers, the manufacturer would only work with three.AdvantagesThe advantage of modularization is that the number of supply inputs is reduced, and the manufacturing process is simplified. Thi
