Title: How do different supply chain configuration settings impact on performance trade-offs?

Authors: Yasmine Sabri; Guido J.L. Micheli; Cali Nuur

Addresses: Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci 32, 20133 Milan, Italy; Department of Industrial Economics and Management, KTH Royal Institute of Technology, Lindstedsvägen 30, 10044 Stockholm, Sweden ' Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci, 32, 20133 Milan, Italy ' Department of Industrial Economics and Management, KTH Royal Institute of Technology, Lindstedsvägen 30, 10044 Stockholm, Sweden

Abstract: The notion of 'fit' in the supply chain management (SCM) literature has evolved following the adoption of the contingency approach in an endeavour to achieve greater organisational effectiveness. In this paper, we investigate the possible approaches to achieving a state of fit between supply chain configuration settings and performance indicators, while taking into account the contextual factors related to different industry sectors and geographical dispersion levels. This study addresses the pressing issue of the performance trade-offs faced by companies to achieve a higher service level and customer satisfaction (effectiveness) on the one hand, while being cost-efficient on the other hand (efficiency). The paper contributes to the SCM literature and practice through synthesising a conceptual framework that scrutinises the relationships between six individual configuration settings and nine effectiveness/efficiency indicators. The study's findings explain the motivations behind different configuration decisions, which help in obtaining the most appropriate fit between supply chain configuration and performance.

Keywords: supply chain configuration; supply chain design; supply chain fit; contingency approach; effectiveness; performance management; performance trade-offs; supply chain management; SCM; supply chain performance; service levels; customer satisfaction; cost efficiency.

DOI: 10.1504/IJLSM.2017.080628

International Journal of Logistics Systems and Management, 2017 Vol.26 No.1, pp.34 - 56

Received: 16 Jul 2015
Accepted: 25 Oct 2015

Published online: 01 Dec 2016 *

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