Aligning product characteristics and the supply chain process – A normative perspective

Abstract

The fit between designed product characteristics and the supply chain process has been researched in the operations and supply chain management literature as an important strategic part of operations, but how to secure this fit is still a pending issue. The aim of this study is twofold: (a) to examine the relationship between product characteristics and the supply chain process; and (b) based on the research results, to explore how their alignment should be constructed. This is done by a survey-based experimental analysis using a normative model of supply chain management, which is motivated by consideration of Little’s law in a supply chain context. The study provides confirmatory results of past research as well as new results regarding the relationship between product characteristics and the supply chain process. The research introduces the concept of absolute supply chain orientation strategy (ASCOS), which focuses on perpetual improvements to lead-time, just-in-time control, quality and demand variability to ensure the fit between product characteristics and the supply chain process, as a culture or mind-set that should be encouraged in the firm. The research proposes that ASCOS leads to high competitiveness over time. The results also indicate that the inter-functional product development capability contributes to the development as well as to the implementation of the absolute supply chain strategy.