Purpose – The purpose of this study is to increase the understanding of how the
supply strategy of a manufacturing business can be affected by some competitive
factors and the suppliers’ geographical location. In order to fulfill the purpose of this
study the following three questions were formulated:
1. How do the competitive factors: cost, quality, flexibility, delivery time and
reliability get affected by the suppliers’ geographical placements?
2. How do the competitive factors cost, quality, flexibility, delivery time and
reliability affect the design of an organization’s supply strategy?
Method – To fulfill the purpose, a literature study were conducted combined with a
case study. The literature study was focused on how different competitive factors can
be affected by a company supplier’s geographical location. The impact of how this
can affect a business supply strategy was also investigated. The empirical study was
based on document studies along with interviews conducted at the case company. The
theoretical framework has been analysed against the empirical study.
Findings – The competitive factors can be affected in different ways, depending on
where the supplier is located, both in relation to the company but also depending on
which geographic continent they are based on. Finally, company’s supply strategy is
affected in a large extent by how they choose to prioritize their competitive factors.
Implications – Theories and methods that are suggested to achieve an effective
supply strategy are implementable on companies who use a multiple number of
suppliers. To implement the result of this study, it is required that the company has a
clear picture of which competitive factors that has the highest priority. It is required a
profound knowledge of supply and supply strategies and further studies since the
conditions can be different for every company.
Limitations – This study has been conducted with help from a case company, whose
production is located in Malaysia and head office in Kista, Sweden. Because of the
long geographical distance, the communications has been limited which hampered the
conducting of the study.