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This study aims to explore dynamic pathways of business supply chain transformation under competitive market evolution. Although extensive studies have discussed the strategic alignment of managing supply chain modes of operations, i.e. lean, agile and leagile, to different product markets, how a company leverages an adaptive transformation to meet upcoming product-market requirements has never been investigated. In-depth case studies of three well-established Chinese fashion companies operating in low, middle and high value markets were conducted. Results of the study show that context of the products primarily determines how supply chain management should evolve over time. Companies having fast-moving, high-volume products are more likely to undergo an internal-to-external, operation-led supply chain transition for a lean market expansion. Comparatively, companies that have a high product mix tend to follow an external-to-internal, strategy-led transition for a radical agile market transition. Key enablers for differentiated transformations are also identified in the findings. This research is significant to the industry sector in that it identifies patterns of supply chain transformation and the associated processes required for a new market fit. It also adds to the current knowledge of supply chain management research with a focus on market management.

Transforming supply chains for a new competitive market alignment – a case study of Chinese fashion apparel companies