How to develop a differentiated supply chain strategy

Abstract

Purpose

The purpose of this paper is to contribute to the understanding of supply chain (SC) design and operation by investigating how two case companies have developed and deployed differentiated SC strategies. This study primarily focuses on the operating part of the differentiated SC strategy, that is, how different manufacturing strategies – such as make‐to‐stock, assembly‐to‐order, and make‐to‐order – are used in contemporary manufacturing related SCs. However, this study also includes elements concerning supply and distribution parts.

Design/methodology/approach

This study employs a descriptive multiple case study approach. The case organizations originate from Sweden, but they have significant international presence. Empirical data have been collected mainly from in‐depth interviews with key persons representing senior and middle management in the case companies.

Findings

This research shows how two case companies have developed and deployed a differentiated SC strategy. The case study findings reveal that both the case companies already are employing several manufacturing strategies and also combine these with different distribution strategies. Up to now, the supply part of the differentiated SC strategy has been neglected but probably will be incorporated in the near future. This implies that one efficient way to develop a differentiated SC strategy could be to combine different supply, manufacturing and distribution strategies into various SC solutions. By combining relatively few strategies, it is possible to develop several differentiated SC solutions.

Research limitations/implications

The research work is limited to Swedish companies, however, the case companies are in top three in their respective industries measured by sales, which provides ground for the generalization of the research.

Practical implications

This paper gives an insight to managers and practitioners in how to develop and deploy a differentiated SC strategy.

Originality/value

Several studies have discussed the appropriate SC strategy issue but failed to address the need to utilize several SC solutions concurrently. However, this paper contributes by discussing how to develop and deploy a differentiated SC strategy and how to manage these multiple SCs.

Citation

Hilletofth, P. (2009), "How to develop a differentiated supply chain strategy", Industrial Management & Data Systems, Vol. 109 No. 1, pp. 16-33. https://doi.org/10.1108/02635570910926573