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Strategies for demand-driven supply chains: A decoupling thinking perspective
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-7190-9807
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

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 howthey 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 atheory.

Abstract [sv]

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.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, School of Engineering , 2020. , p. 135
Series
JTH Dissertation Series ; 056
Keywords [en]
demand driven, decoupling points, decoupling thinking, lead time, supply chain management, operations management, market segmentation, leagility, mass customization, supply chain visibility, postponement, financial performance
Keywords [sv]
efterfrågedrivet, frikopplingspunkter, frikopplingstänkandet, ledtid, logistik, verksamhetsledning, segmentering, leagility, kundanpassning, transparens, senareläggning, räntabilitet
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:hj:diva-50651ISBN: 978-91-87289-59-0 (print)OAI: oai:DiVA.org:hj-50651DiVA, id: diva2:1468752
Public defence
2020-10-15, E1405 (Gjuterisalen), Tekniska högskolan, Jönköping, 10:00 (Swedish)
Supervisors
Available from: 2020-09-18 Created: 2020-09-18 Last updated: 2025-10-13Bibliographically approved
List of papers
1. Structuring a new product development process portfolio using decoupling thinking
Open this publication in new window or tab >>Structuring a new product development process portfolio using decoupling thinking
2020 (English)In: Production planning & control (Print), ISSN 0953-7287, E-ISSN 1366-5871, Vol. 31, no 1, p. 38-59Article in journal (Refereed) Published
Abstract [en]

The purpose is to develop a structured new product development (NPD) process portfolio for manufacturing companies that facilitates the organization of NPD processes for both standardized products, focusing on time-to-market, and customized products, focusing on time-to-customer. The research combines different literature streams, enriching and advancing the understanding of decoupling thinking in NPD processes of manufacturing companies. It includes extensive empirical data from six manufacturing companies and presents testable propositions for further research. The resulting NPD process portfolio separates technology development from product development, acknowledges the different drivers and outcomes of processes and addresses the lead-time trade-offs. It provides an overview of potential options for NPD processes and shows different pathways through the processes. Companies can use the portfolio to support decisions related to the overall configuration of their NPD portfolios, the role and the range of different NPD processes, as well as to determine when and how to engage customers.

Place, publisher, year, edition, pages
Taylor & Francis, 2020
Keywords
aggregate project plan, customer order decoupling point, decoupling thinking, lead time, New product development, Commerce, Economic and social effects, Industrial research, Manufacture, Sales, Leadtime, Project plans, Product development
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:hj:diva-45481 (URN)10.1080/09537287.2019.1629037 (DOI)000473725000001 ()2-s2.0-85068185151 (Scopus ID);HOA JTH 2020;JTHLogistikIS (Local ID);HOA JTH 2020;JTHLogistikIS (Archive number);HOA JTH 2020;JTHLogistikIS (OAI)
Available from: 2019-08-07 Created: 2019-08-07 Last updated: 2025-10-13Bibliographically approved
2. Leagility in a triad with multiple decoupling points
Open this publication in new window or tab >>Leagility in a triad with multiple decoupling points
2015 (English)In: Advances in production management systems: Innovative production management towards sustainable growth / [ed] S. Umeda, M. Nakano, H. Mizuyama, N. Hibino, D. Kiritsis, G. von Cieminski, Berlin: Springer, 2015, Vol. 459, p. 113-120Conference paper, Published paper (Refereed)
Abstract [en]

Leagility is a strategic concept that represents a combination of lean and agile. Lean is assumed to be a cost-based strategy that is appropriate in a forecast-driven context upstream of the customer order decoupling point (CODP). Agile is the corresponding flexibility-based strategy in a customer-order-driven context downstream of the CODP. Competitive advantage is based on that the position of the CODP is aligned with the market requirements. In a dyad setting this alignment can be realized with relative ease but in a triad setting it becomes more complicated if both supply actors pursue a leagile strategy. If lean based purchasing faces an agile based delivery strategy or the opposite, where agile based purchasing faces a lean based delivery strategy, the interface is misaligned. In this paper, four interface configurations are identified and empirical examples of each are given based on a case study.

Place, publisher, year, edition, pages
Berlin: Springer, 2015
Series
IFIP Advances in Information and Communication Technology, ISSN 1868-4238
Keywords
Leagility, lean, agile, lead-time, supplier relations, decoupling points
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-27806 (URN)10.1007/978-3-319-22756-6_14 (DOI)000380380800014 ()2-s2.0-84950135663 (Scopus ID)978-3-319-22756-6 (ISBN)
Conference
International Conference in Advances in Production Management Systems, Tokyo, Japan, September 5 - 9, 2015
Projects
KOPtimera
Funder
Knowledge Foundation
Available from: 2015-08-31 Created: 2015-08-31 Last updated: 2025-10-13Bibliographically approved
3. Customization and Variants in Terms of Form, Place and Time
Open this publication in new window or tab >>Customization and Variants in Terms of Form, Place and Time
2019 (English)In: Advances in production management systems: Production management for the factory of the future / [ed] F. Ameri, K. E. Stecke, G. von Cieminski & D. Kiritsis, Springer, 2019, p. 383-391Conference paper, Published paper (Refereed)
Abstract [en]

The interest in customization has increased due to globalization, and globalization makes competing on price more difficult if access to low-cost production is unavailable. Customization usually implies the creation of variants, where the final products are customized in form, place and/or time. However, the relation between customization and variants is unclear; therefore, the purpose of this study is to analyze customization in terms of form, place and time, as well as relate it to product proliferation (i.e., variant creation). Here, a time perspective is used, creating a clear relation to flow thinking. Using flow thinking and the two strategic decoupling points related to flow driver (customer order decoupling point) and flow differentiation (customer adaptation decoupling point) provides a better understanding of what, where and when customization can be applied.

Place, publisher, year, edition, pages
Springer, 2019
Series
IFIP Advances in Information and Communication Technology, ISSN 1868-4238, E-ISSN 1868-422X ; 566
Keywords
Customization, Decoupling point, Flow thinking, Product proliferation, Information technology, Customer order decoupling point, Flow driver, Low costs, Time perspective, Costs
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:hj:diva-46728 (URN)10.1007/978-3-030-30000-5_48 (DOI)000503438100048 ()2-s2.0-85072946286 (Scopus ID)9783030299996 (ISBN)9783030300005 (ISBN)
Conference
IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2019, Austin, United States, 1 - 5 September 2019
Funder
Knowledge Foundation
Available from: 2019-10-25 Created: 2019-10-25 Last updated: 2025-10-13Bibliographically approved
4. Demand-driven supply chain operations management strategies – a literature review and conceptual model
Open this publication in new window or tab >>Demand-driven supply chain operations management strategies – a literature review and conceptual model
2021 (English)In: Production & Manufacturing Research, ISSN 2169-3277, Vol. 8, no 1, p. 427-485Article, review/survey (Refereed) Published
Abstract [en]

The literature on demand-driven supply chain operations management strategies (DDSCOMSs) is excellent in describing when, where and how the strategies can be used. However, managers of manufacturing companies usually employ more than one DDSCOMS when designing and operating their supply chains, thus needing to understand when, how and why two or more DDSCOMSs can be used in combination. The answers to these questions are not stated well in the literature. The purpose of this study is therefore to explore the relations among the DDSCOMSs, using a combination of a structured literature review and analytical conceptual research. The study identifies and establishes both direct and indirect relations among the five studied DDSCOMSs. These results assist in nuancing the complex and dynamic relations between the DDSCOMSs, by showing the effects different decisions have on operational performance. The study also points out further research directions, such as the DDSCOMS relations that are under-studied.

Place, publisher, year, edition, pages
Taylor & Francis, 2021
Keywords
Decoupling point, market segmentation, leagility, mass customization, postponement
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:hj:diva-50648 (URN)10.1080/21693277.2020.1856012 (DOI)000620775500001 ()2-s2.0-85101168726 (Scopus ID)HOA;;1468668 (Local ID)HOA;;1468668 (Archive number)HOA;;1468668 (OAI)
Funder
Knowledge Foundation, 20130150
Note

Included in doctoral thesis in manuscript form.

Available from: 2020-09-18 Created: 2020-09-18 Last updated: 2025-10-13Bibliographically approved
5. Postponement Revisited – A Typology for Displacement
Open this publication in new window or tab >>Postponement Revisited – A Typology for Displacement
2019 (English)In: IFIP Advances in Information and Communication Technology, Springer, 2019, Vol. 567, p. 204-211Conference paper, Published paper (Refereed)
Abstract [en]

Since its introduction, postponement as a supply chain strategy has received a lot of attention in the operations management and the supply chain management literature. Nevertheless, there are still mixed answers about the meaning of postponement and as such, about its operational benefits. For instance, while some scholars argue that postponement results in a shorter delivery lead time, others claim the contrary. To reconcile these apparently conflicting findings, the purpose of this study is to establish a typology that highlights the three key properties of displacement, which is a collective term for preponement and postponement. By breaking down postponement into the three dimensions of form, place, and time, as well as introducing its antithesis preponement, a typology for displacement is presented and illustrated using a well-known postponement case. 

Place, publisher, year, edition, pages
Springer, 2019
Series
IFIP Advances in Information and Communication Technology, ISSN 1868-4238, E-ISSN 1868-422X ; 567
Keywords
Decoupling point, Displacement, Flow thinking, Postponement, Preponement, Information technology, Supply chain management
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:hj:diva-46727 (URN)10.1007/978-3-030-29996-5_24 (DOI)000507552200024 ()2-s2.0-85072951751 (Scopus ID)9783030299958 (ISBN)
Conference
IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2019, Austin, United States, 1 - 5 September 2019
Available from: 2019-10-25 Created: 2019-10-25 Last updated: 2025-10-13Bibliographically approved
6. Some Common and Fundamental Characteristics of Four Supply Chain Strategies – Customization, Leagility, Postponement and Segmentation
Open this publication in new window or tab >>Some Common and Fundamental Characteristics of Four Supply Chain Strategies – Customization, Leagility, Postponement and Segmentation
2018 (English)Conference paper, Oral presentation with published abstract (Other academic)
Abstract [en]

Balancing efficiency and responsiveness has been identified as an overall challenge for decision makers in supply chain management. The literature offers several strategies for managing this balance challenge. From a decision-making perspective this is a significant contribution but in combination the strategies also result in complexity related to the different alternatives offered. This study does, however, show that the strategies share a common foundation in terms of content related to decoupling thinking, which is based on flow discontinuities. Using the strategies’ individual strengths, a process is outlined that takes advantage of these strengths through a four-phase ongoing process.

Keywords
Supply chain strategy, decoupling point, strategic lead-time
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:hj:diva-41686 (URN)
Conference
25th EurOMA International Annual Conference, June 24 - 26, 2018, Budapest, Hungary
Available from: 2018-10-01 Created: 2018-10-01 Last updated: 2025-10-13Bibliographically approved
7. Understanding lead-time implications for financial performance – a qualitative study
Open this publication in new window or tab >>Understanding lead-time implications for financial performance – a qualitative study
2021 (English)In: Journal of Manufacturing Technology Management, ISSN 1741-038X, E-ISSN 1758-7786, Vol. 32, no 9, p. 183-207Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of the study is to describe the implications of strategic lead times (SLTs) for return oninvestment (ROI).

Design/methodology/approach – This study was part of an interactive research project and is based on thelogic of theory application leading to theory building. It uses a multiple case study with five holistic singlecases. Empirical data (ED) have mainly been collected from interviews and focus groups.

Findings – The length of and uncertainty in SLTs have implications for companies’ financial performance.These implications vary in strength and can be either direct or indirect. These findings are incorporated into aframework on SLTs’ implications for ROI.

Research limitations/implications – The presented array of SLTs’ implications for ROI could be furtherinvestigated, focussing on their strength. Additionally, it would be interesting to substantiate the findings inthe context of environmental and social sustainability (i.e. the triple bottom line).

Practical implications – The findings offer practitioners a rich description and understanding of SLTs’actual implications for financial performance in terms of ROI. This knowledge can support practitioners inanalysing supply chain designs based on financial performance.

Originality/value – Using a combination of a relative financial performance measure (ROI) and a set of SLTs(systems perspective), this study focuses on SLTs’ actual implications for ROI. The findings provide evidencethat different sections of a supply chain can have different implications for revenue, cost and investment (i.e. thethree absolute measures related to ROI).

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2021
Keywords
Decoupling point, Lead-time analysis, Financial performance, Postponement, Mass customisation
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:hj:diva-50650 (URN)10.1108/JMTM-06-2020-0247 (DOI)000660878800001 ()2-s2.0-85107600088 (Scopus ID)HOA;;1468696 (Local ID)HOA;;1468696 (Archive number)HOA;;1468696 (OAI)
Funder
Knowledge Foundation, 20130150
Note

Included in doctoral thesis in manuscript form.

Available from: 2020-09-18 Created: 2020-09-18 Last updated: 2025-10-13Bibliographically approved

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