Optimal supply chain strategies for large, complex product developments

Determining the optimal supply chain strategy is a central decision for large, complex development projects in the rolling-stock and jet-engine industries. The research objective is to understand the optimal supply chain strategy for these products. More specifically, it is to determine: 1) if an agile or a cost-efficient supply chain is a better basis for product development; 2) if different strategies should be followed for serial production considering product, process and market characteristics. Based on a literature review and 17 semi-structured interviews with executives from the rolling-stock and aerospace industry, several insights are offered: 1) design stability is a key determinant of supply chain strategy; 2) market characteristics (e.g., time-to market) affect supply chain strategies; 3) the product introduction capability of suppliers is distinctively important; 4) using different supply chains for product development and serial production can be beneficial; 5) the sourcing decision should be agnostic of the life-cycle.