Supply chain strategising. Integration in practice

Authors: BENEDIKTE BORGSTRÖM

Departing from a practice perspective of social systems, this thesis examines

customer ordered production. Building on Giddens’s theory of structuration,

the thesis analyses the principles and practice of a customer-oriented strategy in

the supply chain system. While relevant literature outlines the complexity of a

customer ordered production strategy, scholars have seldom appreciated the

challenges and opportunities of operating in an integrated supply chain.

Different supply chain actors are prone to undertake customisation in different

ways that counteract each other. Customer ordered production changes as it is

being practiced.

Usually customer-oriented strategies are in antithesis to cost-focused

strategies. Such an opposition has been revealed to be false due to contextual

complexities and dynamics. Instead, in this thesis I argue that planned supply

chain objectives and emergent supply chain actions constitute a duality that at

the same time enables and restructures strategic development. Learning how

this duality evolves might enable the alignment of degrees of customisation and

the restructuring of supply chain practices. Customer ordered production

implies in practice coordination and adaptation of actors along the supply chain

in order to achieve strategic advantages. Supply chain integration, which takes

different forms in different contexts and situations, involves various functions

and processes as well as enabling technologies with implications for alignment.

While departing from the assumption underlying the idea and studies of supply

chain management, that is to say, the capability and willingness of actors to take

advantage of supply chain integration to act more effectively and efficiently,

this thesis investigates what system integration and social integration mean in

terms of how they work and what they imply.

Empirically, the thesis builds on the case of a car manufacturing supply

chain, namely that of Volvo Cars. The case is presented in two ways: first, it is

framed as the strategic development process of a customer ordered production

and then as the performative development of a customer ordered production.

The two presentations of the case are then confronted with each other. Volvo

Cars is special in its industry because of its aligning of production system and

supply chains to customer demand and building cars in response to customer

orders. The specifics of customer ordered production at the same time facilitate

and impede the action of different actors. The recurrent practices of the supply

chain are influenced by several logics encountering each other, seen in terms of

durability and change. Conditions and consequences vary for different actors in

the supply chain, which causes dynamics and potentially conflicts and

contradictions.

iv

This thesis aims to inspire social analysis of supply chain integration by

offering a practice perspective on the way supply chains work from strategy to

practice and in between by engaging in a conversation with different streams of

research, particularly supply chain management, industrial network approach

and strategising. As customer orientation is widely accepted as a desirable aim

for organisations and customer-oriented strategies are in use in business as well

as in social and health sectors, just to mention a few, the consequences of such

strategies, which this thesis critically investigates, have far-reaching societal

implications.

Publish Year: 2010