Aligning product and supply chain strategies in the mobile phone industry

Abstract

Designing and managing the supply chain of a company in the mobile phone industry is particularly challenging. Short product lifecycles, rapidly evolving technology, globally linked distribution networks, increasing product variability and high levels of demand and supply uncertainty all create problems for those managing these supply chains. As competition in this industry increases and profit margins decrease, proper supply chain management practices will only become more important to companies competing in this industry. In order to succeed, companies must implement their supply chain so that it effectively supports their corporate strategy. This thesis investigates the relationship between corporate strategy and supply chain strategy within the mobile phone industry. Although it is directed at one industry, the wide variety of products in terms of price and functionality suggests that there isn't a "one size fits all" supply chain strategy appropriate for all companies that produce mobile phones. An extensive survey was developed that asks participants strategic, tactical and operational questions about different aspects of supply chains that deliver mobile phones. This is used to identify areas in which the stated supply chain strategy impacts the design and operation of the supply chain. Finally, differences in supply chain practices between high and low performers are identified based on supply chain strategy.