Matching Product and Supply Chain Characteristics

University of Southern Denmark Campus Odense M.Sc. in Economics and Business Administration – Strategy and Organization

MATCHING PRODUCT AND SUPPLY CHAIN CHARACTERISTICS A Literature Review on Theory, Models and the Implications of Coordination Mechanisms

by Student name: CPR. nr.: Eksamens nr.: Bastian Baisch 271186-3829 311348

Course:

Advanced Strategy and Organization Theory

ABSTRACT Supply chain management has become one of the most popular approaches to enhance the competitiveness of business corporations today. A critical aspect in this setting is finding the most suitable supply chain for a particular product. Fisher’s Framework, the DWV^3-Model and the Product-Life-Cycle Model are the three most widely accepted models used to match supply chain characteristics to product characteristics. The determining factor in all three models is the product’s demand pattern, which ultimately has to be matched by the supply chain’s characteristics. The match between the supply chain characteristics and the product characteristics is achieved through the appropriate placement of the order-penetration-point. Depending on the order-penetration-points placement distinct process interdependencies occur which have to be matched by particular coordination mechanisms. A causal chain and correlations between product characteristics, supply chain characteristics and the use of particular coordination mechanisms is visualized and demonstrated.

INTRODUCTION Corporations are seeking to accomplish the best possible performance from their supply chains through many different means such as outsourcing, off-shoring, replenishment and information sharing systems (Selldin and Olhager, 2007). Never before in history has so much technology and cognitive capacity been used to improve the performance of a corporations’ supply chains. Nevertheless, before any such concrete measures and actions can be taken, the design of the basic supply chain has to be scrutinized. The

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