SUPPLY CHAIN BENEFIT

One of the major benefits companies gain from modularization is reduced internal complexity. This reduction is made possible through strategic changes in the supply chain. Due to the use of pre-defined modules and standardized interfaces, modular product architectures enable simplicity in manufacturing setups and production, which can lead to greater levels of automation. Accordingly, the modular approach considers the optimum across the entire value chain.

How modularization affects a company’s value chain