Product customization changes a standard product's features, materials, branding, packaging or configuration for a particular buyer or market. The change may be selected from predefined options or engineered specifically for the order.
Which elements can be customized?
- Color, size and materials
- Logo, labeling and packaging
- Components and accessories
- Software or language settings
- Performance requirements
- Documentation and regulatory markings
Customization vs. personalization
Customization usually changes product attributes chosen by the buyer or designed for a segment. Personalization can adapt the experience or product for an individual using preferences or data. The terms sometimes overlap.
How does customization affect sourcing?
It can increase minimum order quantities, tooling, sampling, lead time and inspection complexity. The buyer should separate one-time development costs from recurring unit costs.
How should changes be approved?
Use a controlled specification, drawings, sample approval and change log. Confirm which deviations require new testing, certification or customer approval.
What should the agreement address?
Document intellectual-property ownership, tooling, confidentiality, order commitments, defect criteria and the disposition of unused customized inventory. Confirm whether the supplier may sell the design to others.
