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

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 identifi es some appropriate means to overcome them, including postponement and differentiated sourcing.