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A consumer driven business models´ impact on sourcing and inventory
University of Borås, Sweden.
University of Skövde, Sweden.ORCID iD: 0000-0002-8305-4412
2011 (English)In: Proceeding of the International Conference on Technology Innovation and Industrial management, Oulo, Finland, 2011Conference paper, (Refereed)
Abstract [en]

Increased competition in many markets has forced firms to adopt new business models. Oneway to differentiate from the competition is to develop products based on implicit consumerneeds that may be sold at a premium price. This research uses case study methodology toinvestigate a Swedish furniture wholesaler, and how their shift to a consumer driven businessmodel has affected sourcing and inventory. The research reveals that the high focus on thedemand-side of the company has had detrimental effect on the supply-side. Between 2004 and2009 the number of stock keeping units increased dramatically, and the sales increased with22%. Sourcing was affected since the order quantities became smaller, which lead to longerlead times in manufacturing. The inventory levels also increased, as did the averageinventory turnover. As the market dropped in 2008 due to the economical situation, the casecompany was not able to respond to the changes in demand. The main theoretical implicationis that the management of the demand- and the supply-side of the firm have to be coordinatedon macro level, the main practical implication is that managers needs to devote time to bothmanagement directions, and the main social implication is that differentiated supply chainstrategies may employ people closer to the consumption market.

Place, publisher, year, edition, pages
Oulo, Finland, 2011.
Keyword [en]
Consumer driven, sourcing, inventory, furniture
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:hj:diva-20828OAI: oai:DiVA.org:hj-20828DiVA: diva2:611314
Conference
International Conference on Technology Innovation and Industrial management
Available from: 2013-03-15 Created: 2013-03-15 Last updated: 2017-02-13Bibliographically approved

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Eriksson, DavidHilletofth, Per
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf