Supporting product configuration and form postponement by grouping components into kits: the case of MarelliMotori

With millions of possible electric motor configurations, MarelliMotori has always been pushing customisation within its product strategy. Over the last few years MarelliMotori's strategy has been challenged by the increasing pressure on costs and delivery times due to the entry of low-cost manufacturers and the proliferation of highly responsive small companies operating on a regional scale. Therefore, combining product customisation with rapid deliveries and competitive prices has become a must for MarelliMotori. To do so, MarelliMotori considered changing both the product configuration process and the material flow. The case illustrates how and why grouping components into kits has enabled both the implementation of a software-based product configuration system and the postponement of product differentiation along the material flow, thus playing a key role in enhancing MarelliMotori's mass customisation capability.