From Buyer to Integrator: The Transformation of the Supply-Chain Manager in the Vertically Disintegrating Firm

Abstract

Using case study data, we describe how a large personal computer manufacturer changed its supply-chain management strategy after outsourcing the majority of its design and manufacturing activities to a network of focused suppliers. To cope with this new structure, the firm created highly skilled generalists, "supply-chain integrators," who coordinate product development, marketing, production, and logistics from product concept to delivery across firm boundaries. We particularly focus on the skill-set that characterizes these integrators. Finally, we use the case evidence, combined with previous theory, to suggest a specific program of research into coordinating product development across disaggregated supply chains.

Keywords: Supply Chains, New Product Development, Integration, Outsourcing, Organization Design, Interface

JEL Classification: M1, L2