Forming a Supply Chain Strategy for a Startup

Abstract: About 90% of all startups fail to become successful, and the most significant reason is due to premature scaling. Limited research has priorly been conducted in the borderland between startups and supply chain. Explicitly on how a startup should go about defining its supply chain objective and how to measure its performance. Nevertheless, the high-tech startup industry sees potential in gaining insights about this issue. This study will develop a framework to guide startups in choosing a good supply chain strategy and scale it properly. Purpose The purpose of this research study is to identify a supply chain strategy for startups to increase preparedness for future growth. Methodology To fulfill the purpose of this thesis, a method was developed including two segments. Firstly, a literature review was conducted which resulted in a theoretical framework. Secondly, empirics were collected through interviews and a survey. The method is iterative, thus the resulting framework is developed in close relations with both theory and empirics. Conclusions A framework for deciding on a supply chain strategy for a startup is presented. In addition, critical success factors as well as relevant key performance indicators, for a startup to assess when scaling v is presented. In order to determine a supply chain strategy, we propose that the following four factors should be considered: (1) the characteristics of the industry they are operating in, (2) the type of product they are selling, (3) the stage in the product life cycle that the product is currently in, and lastly (4) the stage in the startup life cycle the organization is currently in. The CSFs and KPIs are identified to help a startup scale its supply chain.