What is the impact of 'servitization' on the supply chain?

Frederic Ponsignon is a research fellow in service management at the Centre for Innovation and Service Research at University of Exeter Business SchoolProduct-based manufacturers are increasingly providing value-adding services to their customers. These services range from basic add-ons such as repair services and spare parts provisioning to advanced offerings including availability and outcome-based contracts. We refer to this phenomenon as ‘servitization’ - a shift from product-based business models to service-oriented ones.

This change has major implications on how the supply chain or network is managed, which brings about significant challenges. We are conducting multiple case studies in France and in the UK to investigate this phenomenon and produce frameworks and tools that are relevant and useful to managers.

The University of Exeter Business School is conducting field work into the impact of servitization on the management of the supply chain/network, and we need your input.

We are interested in talking to supply chain management (SCM) professionals who are experiencing these changes and challenges and are willing to share their views on how they are dealing with them. Usually, I like to spend a day or two with an organisation to interview staff members who are involved in SCM activities.

There are two main benefits of participating in this study. First, we will give you detailed and personalised feedback on what we see as best practices. We will compile our main findings in a benchmark report analysing how the participating organisations manage their supply chains. Additionally, we will provide you with a diagnostic tool that you can use to evaluate your capacity to manage the supply chain in a servitized context. It will allow you to assess the “as-is” situation as well as to identify areas for improvement.

If you are interested in engaging with us to understand the nature of these changes and the resulting challenges as well as to identify ways in which they can be managed, please get in touch.

Last but not least, let me mention that this is an academic research project, published data and research findings will be anonymised.

☛ Frederic Ponsignon is a research fellow in service management at the Centre for Innovation and Service Research at University of Exeter Business School

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