What Is the Right Supply Chain For Your Products?

In order to have a successful supply chain, in terms of total supply chain costs and service performance to the customer, companies need to match the type of products they are selling with the type of distribution channels delivering their products. To test this hypothesis a product supply characterization (PSC) model was developed and validated on the European operations of a US$15 billion case study company. The application of the PSC model to the case study company reveals significant value in matching specific product clusters with appropriate supply chain designs and that any mismatch represents supply chain under performance.