Concurrent Product & Supply Chain Creation

The purpose of this thesis is to increase the understanding of interplays between products and supply chains. In academia, there seem to be an acknowledgement that the nature of a given product has a major influence on the performance of the supply chain associated with it – for one it is a structural premise. We also know that logistics costs generally are estimated 15-20% of total product costs. Accordingly, it stands to reason that a company can reduce costs, and thereby gain an edge on its competitors, by tailoring the supply chain in question to an individual product or product family; i.e. by creating Focused Supply Chains. At the same time, customer satisfaction can be increased. As a second means to achieving a better fit between product and supply chain, the firm can deploy Design for Logistics, the discipline of considering the supply chain during product creation. The thesis sets out with exploring the existing theory base for knowledge about Product / Supply Chain interplays. Through empirical case analyses, seven propositions are generated. The propositions contribute with new insight and understanding to theory as well as to practice. A main synthesis of the propositions is that product and supply chains should be created concurrently and integrated. The concept of Concurrent Product & Supply Chain Creation is introduced, and the two main components Focused Supply Chains and Design For Logistics are explained and exemplified by use of Bang & Olufsen.