"Standardization" and "simplification" terms are often used to refer to one and the same. Although, if we approach more closely, they belong to two different concepts. Standardization means compliance with certain size, design, quality, and similar parameters. At its core, this is a technical and technological concept. Simplification is reducing the number of types, sizes, options and other similar parameters. This is a business problem to be solved by selectively, the desire to identify the most important dimensions, such as product and concentrate on the production or use of selected embodiments where possible.
Simplification may be applied to products that have been subjected to standardization in the design or size, or a step leading to standardization. At times, organizations face a daunting task when trying to make a distinction between standardization and simplification, on the one hand, and the suitability and uniqueness is on the other hand. Of course, if economic and technological factors are changed, the old standards may no longer match the best purchases. Often, highlighting the standardization and simplification of component parts instead of solving this problem at the level of the finished product, it is possible to achieve savings in production and at the same time add to the individuality of this finished product. Furthermore, you can take advantage of when the supply in the form of lower initial cost , lower inventory and a more flexible approach to the selection of the source of supply. For example, in the automotive industry, this approach is widely used to reduce costs, improve quality and thus offers a wide variety of options.
“Sasib”, which is manufacturer of equipment for the food industry and beverage industry with headquarters in Italy, found that the standardization of products - a significant aspect for its large global customers, including Coca-Cola.
Purchasing Director described the importance of standardization and the role of supply: "Standardization is important to us, and not just because it affects the purchasing across the group, but also in terms of our ability to design and create products to our customers with stable performance, no matter where it is produced. We also want to reach a level where we can change the production capacity, achieving their optimum level. For example, we need to develop the flexibility to produce equipment in the U.S., which is projected to Europe and vice versa. Perhaps, it’s even more significant that our customers expect standardization of all our product lines. This can only be done if we use the same suppliers who have proven that they can to support our operations in any part of the globe. Therefore we cooperate with the best suppliers of a global supply chain and service. Last companies made deals with local suppliers. However, even in cases where different departments used the services of the same suppliers, prices and specifications can differ significantly. "
