A manufacturer moving upstream: triadic collaboration for service delivery

Abstract

Purpose -The purpose of this paper is to explore servitization in the context of the service supply chain, particularly the effects of the relationship between the subsystem supplier and the end user on the supplier's as well as on the supply chain's ability to provide industrial services. In addition, it aims to present a solution to overcome the challenges of lack of this relationship. Design/methodology/approach -A case study incorporating an explorative design science approach identifies a theoretically novel and practically relevant problem in the field of service supply chain management. The study combines empirical data collection; systematic conceptualization of means and ends; evaluation of proposed solutions in iterative-and action-oriented cycles; and theoretical explanation of the observed phenomena and outcomes. Findings -By establishing a triadic operational model with an integrator and end user, the subsystem supplier can servitize within a supply chain in which the end user relationship is controlled by the integrator. This enables the combining of critical service provision capabilities: supplier's maintenance-related capabilities and integrator's end user access. Research limitations/implications -Further research is needed to determine the importance of managing the transition to subsystem suppliers in different types of industrial service supply chains. Because these observations and proposals are based on a single case study, the authors cannot draw conclusions as to how they apply to manufacturers in different problem situations. Practical implications -The paper presents a decision-making procedure that describes how a subsystem supplier opting for cooperation in the service supply chain can formulate a coherent set of triadic operational models with intermediaries and end users. Originality/value -The paper shows how servitization takes place on supply chain level.

A Framework of Sustainable Service Supply Chain Management: A Literature Review and Research Agenda

“…Some scholars have developed some related studies based on ternary relationships (Nair and Vidal, 2011) [78]. Finne and Holmstrom (2012) [79] have found that there is a "natural ternary" in the service supply chain by establishing a ternary application model, whereby the supplier can serve the supply chain; even the end-user relationship is controlled by the integrator. In the current background of the global purchasing and networking cooperation, only considering two members in a supply chain is a simple method, which has seriously been out of touch with reality in the perspective of duality.…”

Triadic Value Propositions: When It Takes More Than Two to Tango

“…Matthyssens and Vandenbempt (2008) show that firms that increasingly offer service-based value must interact and develop relationships with not just customers but other downstream actors too. Finne and Holmström (2013) find that service innovation can take place at the supply chain level, involving several actors at multiple levels. Even as most studies of service innovation adopt a dyadic perspective, there have been calls to look beyond the dyad (Finne and Holmström 2013;Gebauer et al 2013;Kowalkowski et al 2013;Windahl and Lakemond 2006).…”

“…Finne and Holmström (2013) find that service innovation can take place at the supply chain level, involving several actors at multiple levels. Even as most studies of service innovation adopt a dyadic perspective, there have been calls to look beyond the dyad (Finne and Holmström 2013;Gebauer et al 2013;Kowalkowski et al 2013;Windahl and Lakemond 2006). In reality, many small and local, as well as multinational, manufacturers operate through intermediaries (Nordin et al 2013), which extends the dyad to include more actors in the network.…”

A simulation based continuous improvement approach for manufacturing based field repair service contracting

“…In manufacturing, service purchasing is often referred to as supply chain "component services" (Wynstra, Axelsson, and Valk 2006), and involves outsourcing to specialized service providers so as to allow the manufacturing firm to continue to focus on their core manufacturing processes. When suppliers provide part of the total service to the customer, the supply chain transforms to a triad (Li and Choi 2009), with integrated service solutions leading to high dependency on the specialized skills and capabilities of service suppliers (Finne and Holmström 2013). A large share of the outsourced service operations becomes part of the buying organization's value proposition to its customers where they are purchased (Wynstra, Spring, and Schoenherr 2014).…”