This paper combines models from service operations management and manufacturing strategy to address the critical importance of service delivery in a modern supply chain. In particular, the research illustrates the trade-offs that occur between manufacturing capacity constraints, cost management and changing customer expectations for service delivery. We develop a provisional model that integrates previously established models to capture this service strategy trade-off. The new model provides a deeper understanding of the competing priorities that drive supply chain strategy in a modern process manufacturing firm. The validity of this model is examined using a case study based on a large manufacturing steel producer.