This paper deals with the impact of supply chains on operations management at Ericsson Mobile Communications. It specifically deals with the transition of the Link÷ping plant from being a production unit to the role of a supply unit in a demand-driven supply chain. This change has had a great impact on many factors. We discuss and analyse the most important issues. These are related to supply chain structure and flexibility, reengineering the information flow, the management of the supply process, and performance measurement.