Purpose: The purpose of this research is to develop a framework  for differentiation focused supply chain design (SCD). Design/methodology/approach: The framework has been developed based on a literature review and tested against a case study. Empirical data has been collected mainly from in-depth and semi-structured interviews. Findings: Differentiation focused SCD can be organized into a five-stage process. It is essential that this process is aligned with new product development (NPD), such that they exchange information, and operate from the same segmentation model. Research limitations/implications: The research is explorative in nature thus empirical data from other research settings should be gathered to reinforce the validity of the findings. Practical implications: This research provides researchers and practitioners with insights as to how a differentiated supply chain should be developed. Originality/value: This research contributes by addressing the lack of research examining how a differentiated supply chain can be developed.