Negotiating with suppliers and with customers is a key part of supply chain management. However, with recent technological advances, the mechanisms available to carry out such activities have become increasingly sophisticated, and the environment in which these activities take place has become highly dynamic. As a consequence, the overall planning of these complex trades, and the coordination of the various production and scheduling activities, need to be carefully considered by the businesses involved in the supply chain management. In order to guide the overall planning, production, scheduling, and allocation of resources, especially designed strategies are increasingly used by the businesses. In this setting, it is crucial that the intended behaviour, and through that, the desired outcomes, of these strategies be precisely understood. Using an empirical analysis, this paper investigates two fundamental strategies in supply chain management: buy-to-build and build-to-order. © 2006 Elsevier B.V. All rights reserved.