Why One Screw Fits All (and That’s a Good Thing)

Standard parts, smarter processes, and surprising savings.

The Humble Screw That Saves Millions

I recently bought a new Billy bookcase from IKEA, the Swedish furniture store. While putting it together, I started wondering how many of those special screws IKEA produces each year. They're not just in this bookcase. They’re in nearly every piece of IKEA furniture.

It must be a massive number. And there’s an obvious economic advantage in using the same type of screw across products. Producing large quantities of the same item leads to what’s called economies of scale, which means each screw becomes significantly cheaper.

Standardizing screws, instead of using 100 different types, enables IKEA to run highly efficient manufacturing processes. Fewer unique parts mean fewer machinery setups and a leaner, more cost-effective operation.

But it doesn’t stop with screws. If you browse IKEA’s product range, you’ll notice that certain components and design principles are reused across many products. That’s economies of scale in action.

Small Changes, Big Impact

Take the Billy bookcase itself. Over the years, it has evolved subtly. Some changes might seem minor to the customer, but they reflect IKEA’s constant drive to optimize. Even small design tweaks can translate into massive savings when applied to millions of units—cutting both cost and complexity.

Standardization helps streamline production, lower procurement and shipping costs, and reduce operational complexity. It’s a key reason IKEA can offer its products at such affordable prices.

Standardization: More Than Just Screws

You’ll find this principle at work in other industries, too. Look at what carmakers like Volkswagen (VW) have done. Years ago, VW adopted a modular platform strategy, allowing multiple models and brands to share a common platform. This means components can be reused again and again.

Previously, each car model had its own unique platform. That required separate engineering efforts, manufacturing lines, and thousands of unique parts—leading to high R&D costs and complex supplier management.

A modern car includes 20,000 to 30,000 individual parts. Reducing the number of unique components can result in dramatic savings and a huge drop in production complexity.

The Surprising Power of Delayed Decisions

And beyond cost savings, there’s another key benefit: flexibility in timing. Once a car model is selected for production, VW can begin configuring and customizing it. But here’s the trick—economically, it makes sense to delay this customization as much as possible.

Why? If differentiation between models happens too early in the production process, it creates a buildup of partially finished cars—tying up inventory and capital. That’s expensive.

Delaying this differentiation allows manufacturers to lower inventory, react faster to market demand, and simplify logistics. While it may sound counterintuitive, financially it makes a lot of sense.

The Balancing Act: Variety vs. Efficiency

Today’s consumers expect variety. When shopping for a bookshelf or a car, you don’t want just one version. But offering endless customization can drive up costs. Standardization, modularization, and late-stage differentiation are how companies square that circle—offering variety while keeping costs under control.

Image by Brett Hondow from Pixabay