strategies for demand-driven supply chains – a decoupling

Strategies for Demand-Driven Supply Chains

– A Decoupling Thinking Perspective

Doctoral Thesis

Fredrik Tiedemann

Jönköping UniversitySchool of EngineeringDissertation Series No. 056 • 2020

Doctoral Thesis in Production Systems

Strategies for Demand-Driven Supply Chains – A Decoupling Thinking PerspectiveDissertation Series No. 056

Published bySchool of Engineering, Jönköping UniversityP.O. Box 1026SE-551 11 JönköpingTel. +46 36 10 10 00www.ju.se

Printed by Stema Specialtryck AB, year 2020

ISBN 978-91-87289-59-0

Abstract

In environments where customer requirements are constantly changing, such as for demand-driven manufacturing companies, the competition involves the ability to act and adapt to customer needs, sometimes even based on commitment from actual customer orders. In this context it is perhaps even more challenging to balance supply and demand. Several strategies proposed in the literature aid in this balancing act and are in this dissertation labelled demand-driven supply chain operations management strategies (DDSCOMSs). The research purpose is then to explore how demand-driven manufacturing companies can combine DDSCOMSs for effectiveness, focusing on five DDSCOMSs: segmentation, leagility, customization, transparency and postponement.

Based on an interactive approach, the research combines analytical conceptual research and empirical case studies. The data are mainly collected from literature reviews, interviews, workshops, observations and archival documents.

The research operationalizes the concept of demand driven using decoupling thinking, before identifying and describing relations between decoupling thinking and the five DDSCOMSs. The results are summarized in a process for aligning supply chains with the characteristics of the products and the market demand. This process can be used by supply chain operations managers to understand the relations between the DDSCOMSs and how they can be combined.

Furthermore, the relations between the financial performance measure – return on investment – and the five DDSCOMSs are established through decoupling thinking and summarized in a framework for how the DDSCOMSs can be combined for effectiveness. This framework, as well as the empirical data on which it is developed, equips supply chain operations managers with the knowledge and the ability to analyze the financial implications of a potential change in the supply chain design.

The research contributes to literature and practice by both summarizing existing and establishing new relations between some commonly used DDSCOMSs, as well as their relations to financial performance. The approach to developing the DDSCOMS framework for effectiveness also allows future research to expand on the framework by including additional DDSCOMSs, constructs of decoupling thinking and/or financial performance measures. Finally, in using constructs of decoupling thinking to establish the relations between the five DDSCOMSs and their implications for financial performance, the research also contributes towards establishing decoupling thinking as a theory. Keywords: demand driven, decoupling points, decoupling thinking, lead time, supply chain management, operations management, market segmentation, leagility, mass customization, supply chain visibility, postponement, financial performance.

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Abstract

In environments where customer requirements are constantly changing, such as for demand-driven manufacturing companies, the competition involves the ability to act and adapt to customer needs, sometimes even based on commitment from actual customer orders. In this context it is perhaps even more challenging to balance supply and demand. Several strategies proposed in the literature aid in this balancing act and are in this dissertation labelled demand-driven supply chain operations management strategies (DDSCOMSs). The research purpose is then to explore how demand-driven manufacturing companies can combine DDSCOMSs for effectiveness, focusing on five DDSCOMSs: segmentation, leagility, customization, transparency and postponement.

Based on an interactive approach, the research combines analytical conceptual research and empirical case studies. The data are mainly collected from literature reviews, interviews, workshops, observations and archival documents.

The research operationalizes the concept of demand driven using decoupling thinking, before identifying and describing relations between decoupling thinking and the five DDSCOMSs. The results are summarized in a process for aligning supply chains with the characteristics of the products and the market demand. This process can be used by supply chain operations managers to understand the relations between the DDSCOMSs and how they can be combined.

Furthermore, the relations between the financial performance measure – return on investment – and the five DDSCOMSs are established through decoupling thinking and summarized in a framework for how the DDSCOMSs can be combined for effectiveness. This framework, as well as the empirical data on which it is developed, equips supply chain operations managers with the knowledge and the ability to analyze the financial implications of a potential change in the supply chain design.

The research contributes to literature and practice by both summarizing existing and establishing new relations between some commonly used DDSCOMSs, as well as their relations to financial performance. The approach to developing the DDSCOMS framework for effectiveness also allows future research to expand on the framework by including additional DDSCOMSs, constructs of decoupling thinking and/or financial performance measures. Finally, in using constructs of decoupling thinking to establish the relations between the five DDSCOMSs and their implications for financial performance, the research also contributes towards establishing decoupling thinking as a theory. Keywords: demand driven, decoupling points, decoupling thinking, lead time, supply chain management, operations management, market segmentation, leagility, mass customization, supply chain visibility, postponement, financial performance.

Sammanfattning

I miljöer där kundkraven ständigt förändras, så som för efterfrågedrivna tillverkande företag, är det viktigt att kunna agera på och anpassa efter kunders behov, ibland till och med baserat på faktiska kundorder. I en efterfrågedriven kontext är det därför mer problematiskt, och kanske än viktigare, att balansera tillgång och efterfrågan. I denna avhandling beskrivs fem strategier som kan bistå i detta balanseringsarbete, vilka benämns demand-driven supply chain operations management strategies och förkortas DDSCOMSs (på svenska ungefär strategier för ledning och styrning av efterfrågedrivna försörjningskedjor). Syftet med avhandlingen är att undersöka hur efterfrågedrivna tillverkande företag kan kombinera DDSCOMSs för yttre effektivitet, med fokus på de fem DDSCOMSs: segmentering, leagility, kundanpassning, flödestransparens och senareläggning.

Forskningen är baserad på ett interaktivt tillvägagångssätt och består av en kombination av analytisk konceptuell forskning och empiriska fallstudier. Data har huvudsakligen samlats in via litteraturstudier, intervjuer, workshops, observationer och dokumentstudier.

I avhandlingen operationaliseras konceptet ”efterfrågedriven” med hjälp av frikopplingstänkandet, för att därefter identifiera och beskriva relationer mellan byggstenar inom frikopplingstänkandet och de fem DDSCOMSs. De identifierade relationerna utmynnar i en process för att anpassa försörjningskedjor till produktegenskaper och efterfrågan. Processen kan stödja yrkesverksamma inom logistikverksamhet att planera och styra försörjningskedjor genom att öka deras förståelsen för relationerna mellan olika DDSCOMSs och hur dessa kan kombineras.

Avhandlingen presenterar även relationer mellan de fem DDSCOMSs och mätetalet ”avkastning på investerat kapital” (engelskans return on investment). Dessa resultat utmynnar i ett ramverk för hur DDSCOMSs kan kombineras för ökad yttre effektivitet. Ramverket, inklusive den empiriska data som ramverket är baserat på, bidrar med kunskap som behövs inom en logistikverksamhet för att analysera potentiella logistiklösningars påverkan på finansiell prestation.

Forskningen bidrar till litteraturen och praktiken genom att både summera befintliga och etablera nya relationer mellan vanligt förekommande DDSCOMSs och deras påverkan på finansiell prestation. DDSCOMSs-ramverket för yttre effektivitet är utformat för att underlätta för framtida forskning att utvidga ramverket och inkludera ytterligare DDSCOMSs, byggstenar inom frikopplingstänkandet och/eller finansiella mätetal. Slutligen, genom användandet av frikopplingstänkandet för att skapa relationer mellan de fem DDSCOMSs och deras påverkan på finansiell prestation bidrar forskningen även till etableringen av frikopplingstänkandet som en frikopplingsteori. Nyckelord: efterfrågedrivet, frikopplingspunkter, frikopplingstänkandet, ledtid, logistik, verksamhetsledning, segmentering, leagility, kundanpassning, transparens, senareläggning, räntabilitet.

Acknowledgements

Numerous people have supported and helped me throughout my PhD process. I could thank you all, but the dissertation is unfortunately too long as it is. Still, some individuals deserve special mention for making this dissertation possible. First and foremost, I express my deepest gratitude and appreciation to my three supervisors. Joakim Wikner, you have certainly challenged my thoughts and helped me become a better academic. You never cease to amaze me with your knowledge and ideas. I think that Nikolas Käkelä (2019, p. III) hit the nail on the head when he wrote that ‘you certainly bring the best out of the people around you, and I think that is much thanks to the fact that you are in this game for all the right reasons’. To Eva Johansson, you are not only a great supervisor but also an exceptional person and academic. You put 110% into whatever you do, something that I realized already during my bachelor’s studies. You always have time for your students and colleagues and see the best in everyone, including a hopeless case as I am (especially in grammar and spelling). These are some of the many reasons why I enjoy working with you. Jenny Bäckstrand, you are not only a great colleague but a good friend. Thank you for putting your trust in me and convincing me to pursue a career in academia. Thanks to you, I am doing something for a living that I truly cherish. I will always be grateful for that. In academia, we frequently say that ‘we stand on the shoulders of giants’, meaning that we make discoveries and progress or gain insights due to the previous discoveries or works of those who have come before us. I would also like to think that for supervisors, it means helping others to bring out the best in them. Therefore, in many ways, you are my giants! Thank you for putting your trust in me and making this journey interesting, educational and enjoyable. Even though this is an end of some sort, I would like to see it as the beginning of a long and fruitful collaboration.

I also take this opportunity to thank my present and former colleagues at Jönköping University, School of Engineering — especially the PhD candidates at the School of Engineering and my colleagues at the Department of Supply Chain & Operations Management — for always supporting me, as well as providing a warm, productive and enjoyable work environment.

Special thanks to Jonathan Gosling at Cardiff Business School for the countless meetings and sharing your knowledge and expertise. I am fortunate to consider you my friend.

I am also grateful to Professor Magnus Wiktorsson at KTH Royal Institute of Technology for the constructive and educational discussion during the final seminar, for scrutinizing an earlier version of this dissertation and for your helpful suggestions and comments.

My appreciation also goes out to the representatives and respondents at the case companies, as well as the founding organizations, Swedish Knowledge Foundation and Jönköping University, School of Engineering. This research would not have been possible without the support of these organizations.

Sammanfattning

I miljöer där kundkraven ständigt förändras, så som för efterfrågedrivna tillverkande företag, är det viktigt att kunna agera på och anpassa efter kunders behov, ibland till och med baserat på faktiska kundorder. I en efterfrågedriven kontext är det därför mer problematiskt, och kanske än viktigare, att balansera tillgång och efterfrågan. I denna avhandling beskrivs fem strategier som kan bistå i detta balanseringsarbete, vilka benämns demand-driven supply chain operations management strategies och förkortas DDSCOMSs (på svenska ungefär strategier för ledning och styrning av efterfrågedrivna försörjningskedjor). Syftet med avhandlingen är att undersöka hur efterfrågedrivna tillverkande företag kan kombinera DDSCOMSs för yttre effektivitet, med fokus på de fem DDSCOMSs: segmentering, leagility, kundanpassning, flödestransparens och senareläggning.

Forskningen är baserad på ett interaktivt tillvägagångssätt och består av en kombination av analytisk konceptuell forskning och empiriska fallstudier. Data har huvudsakligen samlats in via litteraturstudier, intervjuer, workshops, observationer och dokumentstudier.

I avhandlingen operationaliseras konceptet ”efterfrågedriven” med hjälp av frikopplingstänkandet, för att därefter identifiera och beskriva relationer mellan byggstenar inom frikopplingstänkandet och de fem DDSCOMSs. De identifierade relationerna utmynnar i en process för att anpassa försörjningskedjor till produktegenskaper och efterfrågan. Processen kan stödja yrkesverksamma inom logistikverksamhet att planera och styra försörjningskedjor genom att öka deras förståelsen för relationerna mellan olika DDSCOMSs och hur dessa kan kombineras.

Avhandlingen presenterar även relationer mellan de fem DDSCOMSs och mätetalet ”avkastning på investerat kapital” (engelskans return on investment). Dessa resultat utmynnar i ett ramverk för hur DDSCOMSs kan kombineras för ökad yttre effektivitet. Ramverket, inklusive den empiriska data som ramverket är baserat på, bidrar med kunskap som behövs inom en logistikverksamhet för att analysera potentiella logistiklösningars påverkan på finansiell prestation.

Forskningen bidrar till litteraturen och praktiken genom att både summera befintliga och etablera nya relationer mellan vanligt förekommande DDSCOMSs och deras påverkan på finansiell prestation. DDSCOMSs-ramverket för yttre effektivitet är utformat för att underlätta för framtida forskning att utvidga ramverket och inkludera ytterligare DDSCOMSs, byggstenar inom frikopplingstänkandet och/eller finansiella mätetal. Slutligen, genom användandet av frikopplingstänkandet för att skapa relationer mellan de fem DDSCOMSs och deras påverkan på finansiell prestation bidrar forskningen även till etableringen av frikopplingstänkandet som en frikopplingsteori. Nyckelord: efterfrågedrivet, frikopplingspunkter, frikopplingstänkandet, ledtid, logistik, verksamhetsledning, segmentering, leagility, kundanpassning, transparens, senareläggning, räntabilitet.

Acknowledgements

Numerous people have supported and helped me throughout my PhD process. I could thank you all, but the dissertation is unfortunately too long as it is. Still, some individuals deserve special mention for making this dissertation possible. First and foremost, I express my deepest gratitude and appreciation to my three supervisors. Joakim Wikner, you have certainly challenged my thoughts and helped me become a better academic. You never cease to amaze me with your knowledge and ideas. I think that Nikolas Käkelä (2019, p. III) hit the nail on the head when he wrote that ‘you certainly bring the best out of the people around you, and I think that is much thanks to the fact that you are in this game for all the right reasons’. To Eva Johansson, you are not only a great supervisor but also an exceptional person and academic. You put 110% into whatever you do, something that I realized already during my bachelor’s studies. You always have time for your students and colleagues and see the best in everyone, including a hopeless case as I am (especially in grammar and spelling). These are some of the many reasons why I enjoy working with you. Jenny Bäckstrand, you are not only a great colleague but a good friend. Thank you for putting your trust in me and convincing me to pursue a career in academia. Thanks to you, I am doing something for a living that I truly cherish. I will always be grateful for that. In academia, we frequently say that ‘we stand on the shoulders of giants’, meaning that we make discoveries and progress or gain insights due to the previous discoveries or works of those who have come before us. I would also like to think that for supervisors, it means helping others to bring out the best in them. Therefore, in many ways, you are my giants! Thank you for putting your trust in me and making this journey interesting, educational and enjoyable. Even though this is an end of some sort, I would like to see it as the beginning of a long and fruitful collaboration.

I also take this opportunity to thank my present and former colleagues at Jönköping University, School of Engineering — especially the PhD candidates at the School of Engineering and my colleagues at the Department of Supply Chain & Operations Management — for always supporting me, as well as providing a warm, productive and enjoyable work environment.

Special thanks to Jonathan Gosling at Cardiff Business School for the countless meetings and sharing your knowledge and expertise. I am fortunate to consider you my friend.

I am also grateful to Professor Magnus Wiktorsson at KTH Royal Institute of Technology for the constructive and educational discussion during the final seminar, for scrutinizing an earlier version of this dissertation and for your helpful suggestions and comments.

My appreciation also goes out to the representatives and respondents at the case companies, as well as the founding organizations, Swedish Knowledge Foundation and Jönköping University, School of Engineering. This research would not have been possible without the support of these organizations.

Finally, I thank my family for always supporting me. Thank you, Mom, Dad, Emma, Elin, Markus, Iris and Flora for always being there for me and giving me the strength to continue with my work. Special thanks to my life companion and fiancée, Madelene. Thank you for your support, understanding and always being there for me. I am lucky to have you in my life. You are my rock! You and our daughter Alice bring joy and meaning to my life.

Fredrik Tiedemann Jönköping, 2020

List of appended papers

The following seven publications constitute the foundation of this dissertation. Rather than being presented in the order in which they have been written, the sequence is based on the order in which they respond to the four research questions presented in the dissertation. In addition to the publication references, the presentation also includes information on the work distribution and whether the publications are based on an earlier version. Paper 1 Tiedemann, F., Johansson, E. and Gosling, J. (2020), “Structuring a new product development process portfolio using decoupling thinking”, Production Planning & Control, Vol. 31 No. 1, pp. 38–59. Tiedemann presented an earlier version of the paper at the 22nd EurOMA Conference: Operations Management for Sustainable Competitiveness, 26 June–1 July 2015, Neuchâtel, Switzerland. Work distribution: The paper was initiated by Johansson and Tiedemann. Tiedemann collected data from all the six case companies included in the study, with three of them together with Johansson and two of them together with Gosling and Johansson. Tiedemann, and partly Johansson and Gosling, conducted the analysis. Johansson, Gosling and Tiedemann co-wrote the paper, where Tiedemann had the main responsibility as the lead author. Paper 2 Wikner, J., Bäckstrand, J., Tiedemann, F. and Johansson, E. (2015), “Leagility in a triad with multiple decoupling points”, in Umeda, S., Nakano, M., Mizuyama, H., Hibino, N., Kiritsis, D. and von Cieminski, G. (Eds.), Advances in production management systems: innovative production management towards sustainable growth, Springer International Publishing, Cham, pp. 113–120. Tiedemann presented the paper at the 2015 APMS Conference: Innovative Production Management Towards Sustainable Growth, 7–9 September 2015, Tokyo, Japan. Work distribution: Tiedemann and Wikner initiated the paper. Wikner wrote the conceptual part, Tiedemann wrote the empirical illustrative part, and Bäckstrand improved on it. Bäckstrand, Johansson and Tiedemann proofread and improved the readability of the paper. Paper 3 Wikner, J. and Tiedemann, F. (2019), “Customization and variants in terms of form, place and time”, in Ameri F., Stecke K.E., von Cieminski G. and Kiritsis D. (Eds), Advances in production management systems. Production management for the factory of the future, Springer International Publishing, Cham, pp. 383–391. Tiedemann presented the paper at

Finally, I thank my family for always supporting me. Thank you, Mom, Dad, Emma, Elin, Markus, Iris and Flora for always being there for me and giving me the strength to continue with my work. Special thanks to my life companion and fiancée, Madelene. Thank you for your support, understanding and always being there for me. I am lucky to have you in my life. You are my rock! You and our daughter Alice bring joy and meaning to my life.

Fredrik Tiedemann Jönköping, 2020

List of appended papers

The following seven publications constitute the foundation of this dissertation. Rather than being presented in the order in which they have been written, the sequence is based on the order in which they respond to the four research questions presented in the dissertation. In addition to the publication references, the presentation also includes information on the work distribution and whether the publications are based on an earlier version. Paper 1 Tiedemann, F., Johansson, E. and Gosling, J. (2020), “Structuring a new product development process portfolio using decoupling thinking”, Production Planning & Control, Vol. 31 No. 1, pp. 38–59. Tiedemann presented an earlier version of the paper at the 22nd EurOMA Conference: Operations Management for Sustainable Competitiveness, 26 June–1 July 2015, Neuchâtel, Switzerland. Work distribution: The paper was initiated by Johansson and Tiedemann. Tiedemann collected data from all the six case companies included in the study, with three of them together with Johansson and two of them together with Gosling and Johansson. Tiedemann, and partly Johansson and Gosling, conducted the analysis. Johansson, Gosling and Tiedemann co-wrote the paper, where Tiedemann had the main responsibility as the lead author. Paper 2 Wikner, J., Bäckstrand, J., Tiedemann, F. and Johansson, E. (2015), “Leagility in a triad with multiple decoupling points”, in Umeda, S., Nakano, M., Mizuyama, H., Hibino, N., Kiritsis, D. and von Cieminski, G. (Eds.), Advances in production management systems: innovative production management towards sustainable growth, Springer International Publishing, Cham, pp. 113–120. Tiedemann presented the paper at the 2015 APMS Conference: Innovative Production Management Towards Sustainable Growth, 7–9 September 2015, Tokyo, Japan. Work distribution: Tiedemann and Wikner initiated the paper. Wikner wrote the conceptual part, Tiedemann wrote the empirical illustrative part, and Bäckstrand improved on it. Bäckstrand, Johansson and Tiedemann proofread and improved the readability of the paper. Paper 3 Wikner, J. and Tiedemann, F. (2019), “Customization and variants in terms of form, place and time”, in Ameri F., Stecke K.E., von Cieminski G. and Kiritsis D. (Eds), Advances in production management systems. Production management for the factory of the future, Springer International Publishing, Cham, pp. 383–391. Tiedemann presented the paper at

the 2019 APMS Conference: Toward Smart Production Management Systems, 1–5 September 2019, Austin, Texas, US. An earlier version of the paper was presented at the 9th Research and Application Conference on Logistics and Operations Management [PLANs forsknings- och tillämpningskonferens], 19–20 October 2016, Växjö, Sweden. Work distribution: Tiedemann and Wikner initiated the paper. Tiedemann revised the paper based on an earlier version of the conference paper presented in Swedish. Wikner improved the paper’s structure and readability. Paper 4 Tiedemann, F. (2020), “Demand-driven supply chain operations management strategies – a literature review and conceptual model”, Under review in Production & Manufacturing Research. Work distribution: Tiedemann initiated and wrote the paper. Paper 5 Tiedemann, F. and Wikner, J. (2019), “Postponement revisited – a typology for displacement”, in Ameri F., Stecke K.E., von Cieminski G. and Kiritsis D. (Eds), Advances in production management systems. Towards smart production management systems, Springer International Publishing, Cham, pp. 204–211. Tiedemann presented the paper at the 2019 APMS Conference: Toward Smart Production Management Systems, 1–5 September 2019, Austin, Texas, US. Work distribution: Tiedemann initiated and wrote the paper. Wikner improved its structure and readability.

Paper 6 Tiedemann, F. and Wikner, J. (2018), “Some common and fundamental characteristics of four supply chain strategies – customization, leagility, postponement and segmentation”. Paper presented by Tiedemann at the 25th EurOMA Conference: To Serve, to Produce and to Servitize in the Era of Networks, Big Data, and Analytics, 24–26 June 2018, Budapest, Hungary. Work distribution: Tiedemann and Wikner initiated the paper and developed the conceptual process. Tiedemann conducted the literature review and wrote the paper. Wikner improved the paper’s structure and readability.

Paper 7 Tiedemann, F., Wikner, J. and Johansson, E. (2020), “Understanding lead-time implications for financial performance – a qualitative study”, Under review in Journal of Manufacturing Technology Management. Tiedemann presented an earlier version of the

paper at the 23rd EurOMA Conference: Interactions, 17–22 June 2016, Trondheim, Norway. Work distribution: Tiedemann and Wikner initiated the paper. Tiedemann collected and analyzed the data, as well as wrote the first version of the paper. Its final version was co-written and improved by all authors.

the 2019 APMS Conference: Toward Smart Production Management Systems, 1–5 September 2019, Austin, Texas, US. An earlier version of the paper was presented at the 9th Research and Application Conference on Logistics and Operations Management [PLANs forsknings- och tillämpningskonferens], 19–20 October 2016, Växjö, Sweden. Work distribution: Tiedemann and Wikner initiated the paper. Tiedemann revised the paper based on an earlier version of the conference paper presented in Swedish. Wikner improved the paper’s structure and readability. Paper 4 Tiedemann, F. (2020), “Demand-driven supply chain operations management strategies – a literature review and conceptual model”, Under review in Production & Manufacturing Research. Work distribution: Tiedemann initiated and wrote the paper. Paper 5 Tiedemann, F. and Wikner, J. (2019), “Postponement revisited – a typology for displacement”, in Ameri F., Stecke K.E., von Cieminski G. and Kiritsis D. (Eds), Advances in production management systems. Towards smart production management systems, Springer International Publishing, Cham, pp. 204–211. Tiedemann presented the paper at the 2019 APMS Conference: Toward Smart Production Management Systems, 1–5 September 2019, Austin, Texas, US. Work distribution: Tiedemann initiated and wrote the paper. Wikner improved its structure and readability.

Paper 6 Tiedemann, F. and Wikner, J. (2018), “Some common and fundamental characteristics of four supply chain strategies – customization, leagility, postponement and segmentation”. Paper presented by Tiedemann at the 25th EurOMA Conference: To Serve, to Produce and to Servitize in the Era of Networks, Big Data, and Analytics, 24–26 June 2018, Budapest, Hungary. Work distribution: Tiedemann and Wikner initiated the paper and developed the conceptual process. Tiedemann conducted the literature review and wrote the paper. Wikner improved the paper’s structure and readability.

Paper 7 Tiedemann, F., Wikner, J. and Johansson, E. (2020), “Understanding lead-time implications for financial performance – a qualitative study”, Under review in Journal of Manufacturing Technology Management. Tiedemann presented an earlier version of the

paper at the 23rd EurOMA Conference: Interactions, 17–22 June 2016, Trondheim, Norway. Work distribution: Tiedemann and Wikner initiated the paper. Tiedemann collected and analyzed the data, as well as wrote the first version of the paper. Its final version was co-written and improved by all authors.

Table of Contents

Introduction ............................................................................................................ 1

1.1 Background ........................................................................................................ 1

1.2 Problem statement .............................................................................................. 3

1.3 Purpose and research questions ......................................................................... 4

1.4 Research scope and delimitations ...................................................................... 6

1.5 Dissertation outline ............................................................................................ 8

Frame of references ................................................................................................ 9

2.1 Important concepts for the research ................................................................. 10

2.1.1 Supply chain operations management ...................................................... 10

2.1.2 Supply chain fit ......................................................................................... 11

2.1.3 Concept of demand driven ........................................................................ 12

2.2 Decoupling thinking ........................................................................................ 14

2.2.1 Control-based constructs .......................................................................... 16

2.2.2 Risk-based constructs ............................................................................... 17

2.2.3 Variant-based constructs .......................................................................... 19

2.2.4 Information-based constructs ................................................................... 21

2.2.5 Decoupling thinking, a pre-theory............................................................ 22

2.3 Demand-driven supply chain operations management strategies .................... 23

2.3.1 Segmentation strategy .............................................................................. 24

2.3.2 Leagility strategy ...................................................................................... 25

2.3.3 Customization strategy ............................................................................. 25

2.3.4 Transparency strategy .............................................................................. 26

2.3.5 Postponement (preponement) strategy ..................................................... 28

2.4 Research on lead-time implications for financial performance ....................... 30

2.4.1 Synthesis of publications addressing lead-time implications for financial performance ............................................................................................................ 30

2.4.2 Common relative financial performance measures .................................. 31

Methodology .......................................................................................................... 33

3.1 Research design ............................................................................................... 33

3.2 Research process .............................................................................................. 36

3.2.1 Part 1. Empirical case study research...................................................... 37