We relate an array of factors that embody current practice and thinking in
supply-chain management with supply-chain performance. We measured supply-c
hain performance using a set of variables that capture the impact of supply
-chain management on systemwide revenues and costs. We classified supply ch
ains based on the products they support as inherently functional or inheren
tly innovative. They differ in practices used and thinking. High performers
among innovative-product supply chains use practices that enhance revenues
more than high performers among functional product supply chains. They are
more likely to engage in supply-chain management to enhance revenues. Fina
lly, we found that the practices and reasons for engaging in supply-chain m
anagement that distinguish high performers from low performers are differen
t for functional and innovative-product supply chains.