Critical Supply Chain Factors for Scaling a Startup - A Case Study in the Industry of Semiconductors

Abstract: Title: Critical Supply Chain Factors for Scaling a Startup -- A Case Study in the Industry of Semiconductors Author: Pontus Landgren Supervisors: Bertil Nilsson, Lund University, Faculty of Engineering & Lennart Moberg, Acconeer AB Background: A well implemented supply chain strategy aligned with the company's overall strategy is a prerequisite in order to successfully scale a startup. About 90% of all startups fail to become successful, mainly because of premature scaling. Limited research, focusing on volatile high-tech startups and their supply chain, has previously been conducted. To bridge the gap this project will develop a framework of how to implement an aligned supply chain strategy to prepare for future growth. Purpose: The purpose of this research project is to identify critical success factors and describe how to establish a supply chain strategy, in order to prepare the supply chain for future growth for a startup in the semiconductor industry. The following research questions were formulated to fulfill this purpose: RQ1: How could a supply chain strategy be applied for a startup within the semiconductor industry? RQ2: Which factors in the supply chain are critical to succeed with in order to enable growth? RQ3: Which key performance indicators (KPIs) are relevant to track in order to measure the performance of a startup's supply chain during growth? Methodology: The project had an inductive and qualitative approach with an exploratory purpose. The research strategy consisted of a literature review and case studies of three Swedish companies in the industry of Semiconductors. Conclusion: A framework for determine how a supply chain strategy can be applied for a startup is presented. It is an iterative process where theoretical models along with success factors are used to form a supply chain strategy with associated critical success factors and key performance indicators. Presented below is the result with the 8 identified critical success factors. Based on their nature they, can be divided into three different categories, product characteristics, industry characteristics or internal organization. Product characteristics: - User case & market fit - Minimize SKUs Industry characteristics: - Relationship to suppliers - Ensure capability to scale - Postpone or avoid customization Internal organization: - S&OP Process - Top management engagement - Ownership support The essential key performance indicators to track in order to measure the performance of the supply chain are flexibility, cost, delivery precision and quality. Keywords: Startup, Scale, Scaleup, Supply Chain Strategy, Critical Success Factors, Scaling Startup, Semiconductor Industry, Supply Chain Management