Firms that pursue cost leadership strategies tend to focus on operational efficiency but sometimes fail to fully hear the “voice of the customer.” Alternatively, firms pursuing differentiation strategies tend to focus on the customer, but sometimes to the detriment of operational excellence. To help address such imbalances, an emerging stream of supply chain research has introduced the concept of demand and supply integration (DSI). DSI involves coordinating the activities and processes reflective of a firm’s customer focus, with the operational, supply‐side activities that make demand fulfillment possible. This article contributes to this research stream by providing researchable propositions intended to foster support of a new dominant logic in supply chain management thought, describing how firms can best achieve “relevant” customer value by coordinating supply‐ and demand‐focused activities within and across their functional units.
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