Managing Product Complexity ---056

Diversified development is a great way to increase the appeal of your products. However, it may cause manufacturing costs to increase due to more complex material needed, so diversity should be considered, instead of the endless pursuit of diversity resulting in the problem with managing product complexity.

Let’s look at the automotive industry in Japan and Europe. Honda, despite its diverse products, can reduce internal complexity by designing simplifications of templating and processing. But for European car manufacturers, not only are there more types of cars, but workers also build custom-made cars on assembly lines for mass production. The variable cost of complex work plans, inventory control, and production planning systems, European cars are valued much more than standard-priced Japanese cars. Some manufacturers don't understand that they can influence the customer's perception of diversity to attract more success. For customers, the value is the deciding factor for buying or not.

Let customers know that reducing product diversity can be exchanged for those values. Furthermore, the customer may not just take price and quality as consideration, also about delivery times and flexibility. One of my friends ordered a Tesla then he decided to cancel his reservation with $2500 deposit after waiting too long.

Here at Linkstyle, we understand that increasing our SKU will increase our financial success. We believe that our product import strategy is focused on customer feedback, rather than past sales history. This measure is taken to ensure that we get the customer what they need, as well as maintaining our inventory quantity. The cost of logistics is reduced and the overall efficiency of goods being turned over is increased.