Title: Matching supply chain strategy with business strategy and the results of a mismatch

Authors: David Eriksson; Carl PhilipT. Hedenstierna

Addresses: School of Engineering, University of Borås, SE-501 90 Borås, Sweden ' School of Technology and Society, University of Skövde, P.O. Box 408, SE-541 28 Skövde, Sweden

Abstract: Recent research suggests that supply chains should be demand driven, as this allows them to better exploit differentiation opportunities. Application of this theory is, however, not straightforward, as improper implementation can cause rapid escalation of inventory levels and unit costs. Using the case study method, this research aims to highlight these problems, and to provide deeper knowledge about how supply processes are affected by a consumer-focused business strategy. Apart from identifying the problems that may occur when attempting to be more market-driven, e.g., reduced supply chain performance due to product proliferation, this research also identifies some appropriate means to overcome them, including postponement and differentiated sourcing. [Received 28 December 2010; Revised 31 March 2011; Accepted 14 April 2011]

Keywords: demand chain management; DCM; furniture industry; supply chain strategy; business strategy; globalisation; postponement; leagile; supply chain management; SCM; differentiated sourcing.

DOI: 10.1504/IJMR.2012.046802

International Journal of Manufacturing Research, 2012 Vol.7 No.2, pp.181 - 197

Published online: 22 Nov 2014 *

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