What is modularization?

Neither a tool nor an area-specific discipline, but a holistic approach that expands across the entire value chain, modularization is a companywide strategy.
Companies can increase supply chain efficiency through modularization, as targeted adjustments of product ranges, manufacturing processes and market approaches are core aspects strategy. A modular strategy thus entails changes in products and production, which consequently affects customer relations:
Modular systems, which are collections of modules that facilitate different configurations (like building blocks), increase flexibility and thereby customization of products. This allows companies to adapt products to meet varying customer needs.

Overall, modularization increases a company’s competitiveness through the inherent potential to swiftly reach various customers with precise offerings and penetrate its respective market with highly configured products – all while reducing value chain complexity and maintaining cost effectiveness.