ABSTRACT

In the last few years many companies have moved from a market-driven strategy to a more supply-driven business model. We have seen profit warnings in companies that could not meet demand due to lack of components, CEOs resigning because suppliers took excessively high risks, as well as considerable instability in prices because of the uncertainty of supply. Irrespective of whether companies follow an innovation or a cost leadership strategy, the supply side of the business has become much more relevant than before.