Digital manufacturing-driven transformations of service supply chains for complex products

2014 ◽  
Vol 19 (4) ◽  
pp. 421-430 ◽  
Author(s):  
Jan Holmström ◽  
Jouni Partanen

Purpose – The purpose of this paper is to explore the forms that combinations of digital manufacturing, logistics and equipment use are likely to take and how these novel combinations may affect the relationship among logistics service providers (LSPs), users and manufacturers of equipment. Design/methodology/approach – Brian Arthur’s theory of combinatorial technological evolution is applied to examine possible digital manufacturing-driven transformations. The F-18 Super Hornet is used as an illustrative example of a service supply chain for a complex product. Findings – The introduction of digital manufacturing will likely result in hybrid solutions, combining conventional logistics, digital manufacturing and user operations. Direct benefits can be identified in the forms of life cycle extension and the increased availability of parts in challenging locations. Furthermore, there are also opportunities for both equipment manufacturers and LSPs to adopt new roles, thereby supporting the efficient and sustainable use of digital manufacturing. Research limitations/implications – The phenomenon of digital manufacturing-driven transformations of service supply chains for complex product does not yet fully exist in the real world, and its study requires cross-disciplinary collaboration. Thus, the implication for research is to use a design science approach for early-stage explorative research on the form and function of novel combinations. Practical implications – Digital manufacturing as a general-purpose technology gives LSPs an opportunity to consolidate demand from initial users and incrementally deploy capacity closer to new users. Reengineering the products that a manufacture currently uses is needed to increase the utilization of digital manufacturing. Originality/value – The authors outline a typology of digital manufacturing-driven transformations and identify propositions to be explored in further research and practice.

2014 ◽  
Vol 19 (2) ◽  
pp. 153-172 ◽  
Author(s):  
Kostas Selviaridis ◽  
Andreas Norrman

Purpose – The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of sub-contractors and the customer. In this sense, performance-based contracting (PBC) entails increased financial risk for providers. Allocating and managing risk through contractual relationships along the service supply chain is a critical issue, and yet there is scant empirical evidence regarding what factors influence, and how, provider willingness to bear PBC-induced risk. This paper aims to address this gap. Design/methodology/approach – The paper draws on agency theory and two cases of logistics service supply chains, in the food retail and automotive industries respectively, to identify key influencing factors. Data were collected through semi-structured interviews with 30 managers of providers and sub-contractors and review of 35 documents, notably contracts and target letters. Findings – Four influencing factors were found: performance attributability within the service supply chain; relational governance in service supply chain relationships; provider risk and reward balancing; and provider ability to transfer risk to sub-contractors. The propositions developed address how these factors influence provider willingness to bear PBC-induced risk. Research limitations/implications – The factors identified are external to the provider mindset and refer to the management of contractual relationships and service delivery interactions along the service supply chain. The paper contributes to agency theory by stressing the risk allocation implications of bi-directional principal-agent relations in service supply chains. Practical implications – The study suggests ways in which providers can increase their capacity to bear and manage financial risk related to PBC design. Originality/value – The paper identifies factors that influence provider willingness to bear financial risk induced by PBC in service supply chains.


2020 ◽  
Vol 26 (6) ◽  
pp. 1145-1154 ◽  
Author(s):  
Paul Lynch ◽  
C.R. Hasbrouck ◽  
Joseph Wilck ◽  
Michael Kay ◽  
Guha Manogharan

Purpose This paper aims to investigate the current state, technological challenges, economic opportunities and future directions in the growing “indirect” hybrid manufacturing ecosystem, which integrates traditional metal casting with the production of tooling via additive manufacturing (AM) process including three-dimensional sand printing (3DSP) and printed wax patterns. Design/methodology/approach A survey was conducted among 100 participants from foundries and AM service providers across the USA to understand the current adoption of AM in metal casting as a function of engineering specifications, production demand, volume and cost metrics. In addition, current technological and logistical challenges that are encountered by the foundries are identified to gather insight into the future direction of this evolving supply chain. Findings One of the major findings from this study is that hard tooling costs (i.e. patterns/core boxes) are the greatest challenge in low volume production for foundries. Hence, AM and 3DSP offer the greatest cost-benefit for these low volume production runs as it does not require the need for hard tooling to produce much higher profit premium castings. It is evident that there are major opportunities for the casting supply chain to benefit from an advanced digital ecosystem that seamlessly integrates AM and 3DSP into foundry operations. The critical challenges for adoption of 3DSP in current foundry operations are categorized into as follows: capital cost of the equipment, which cannot be justified due to limited demand for 3DSP molds/cores by casting buyers, transportation of 3DSP molds and cores, access to 3DSP, limited knowledge of 3DSP, limitations in current design tools to integrate 3DSP design principles and long lead times to acquire 3DSP molds/cores. Practical implications Based on the findings of this study, indirect hybrid metal AM supply chains, i.e. 3DSP metal casting supply chains is proposed, as 3DSP replaces traditional mold-making in the sand casting process flow, no/limited additional costs and resources would be required for qualification and certification of the cast parts made from three-dimensional printed sand molds. Access to 3DSP resources can be addressed by establishing a robust 3DSP metal casting supply chain, which will also enable existing foundries to rapidly acquire new 3DSP-related knowledge. Originality/value This original survey from 100 small and medium enterprises including foundries and AM service providers suggests that establishing 3DSP hubs around original equipment manufacturers as a shared resource to produce molds and cores would be beneficial. This provides traditional foundries means to continue mass production of castings using existing hard tooling while integrating 3DSP for new complex low volume parts, replacement parts, legacy parts and prototyping.


2011 ◽  
Vol 204-210 ◽  
pp. 1283-1286
Author(s):  
Yi Hong Hu ◽  
Jian Tong Zhang

This paper studies the problem of computing market share in competitive service supply chains characterized by service congestion phenomena. Heterogenous customers choose services based on the utility maximization principle taking congestion into account. We use customer choice theory and infinite dimensional variational inequality to model the customer behavior and estimate service product’s market share. An extended Frank and Wolfe algorithm for solving this market share problem and a numerical example is given. The results shows that that service providers with poor service quality can also win some market share due to customers’ aversion to congestion.


2017 ◽  
Vol 117 (7) ◽  
pp. 1469-1484 ◽  
Author(s):  
Victoria Muerza ◽  
Emilio Larrodé ◽  
José María Moreno-Jiménez

Purpose Following the methodology designed for selecting the best industrial and technological diversification strategy, one of the best methods for achieving the long-term sustainability of companies, the purpose of this paper is to describe its application in the service supply chains (SSCs) sector, specifically, in freight transport in product service supply chains. Design/methodology/approach The methodology used in diversification processes comprises four stages: evaluation of the technological diversification suitability; selection of the technological diversification strategy; implementation of the diversification strategy; and evaluation of the process. Findings The main contributions of the paper are: the proposal of a taxonomy or functional inventory for information and communication technologies (ICTs) in the freight transport industry (FTI); the introduction of a new concept, the technological shrub, a variant of the technological tree that allows interdependencies between the functionality systems; the construction of a technological shrub for ICTs in a standard FTI firm; and the multicriteria selection, based on the Analytic Hierarchy Process (AHP), of the best diversification strategy that can be incorporated by this standard firm for improving competitiveness. This selection utilises a “bottom-up” approach. Originality/value The paper deals with the long-term sustainability of companies by means of technological diversification strategies. Based on the taxonomy constructed for ICTs in the SSC sector and the identification of key technologies for a particular firm, a technological shrub is constructed and a multicriteria procedure is developed in order to select the best diversification strategy.


2015 ◽  
Vol 20 (2) ◽  
pp. 163-178 ◽  
Author(s):  
Inga-Lena Darkow ◽  
Bernadette Foerster ◽  
Heiko A. von der Gracht

Purpose – This study aims to examine the management of food supply chains in complex and volatile business environments, where the sustainability requirements of customers and legislation are increasing. This challenging situation gives rise to the question as to how a logistics company can achieve and sustain competitive advantage through environmentally-oriented sustainability. Design/methodology/approach – This empirical study gathers insights on emerging practices in European food service supply chains from two parallel Delphi surveys conducted with 145 industry experts from 27 countries. The long-term industry expectations of a leading provider in food service logistics are compared with an industry-wide external panel. The questions were designed to understand how managers perceive the emerging domain of sustainability in supply chains. Findings – Environmentally oriented sustainability will remain a key driver of success in the field. However, after applying the dominant logic concept for analyzing results, it becomes apparent that managers have to continuously challenge internal existing expectations to translate an emerging domain into strategy. We show how the senior management team under investigation was challenged in its dominant logic and how it tried to overcome this situation during strategy development. Originality/value – The study shows how managers perceive and cope with the emerging domain of environmentally oriented sustainability, how they translate it into strategy, and utilize resources for creating customer value. The research supports managers in adapting to new competitive environments. Furthermore, the study contributes by visualizing the dominant logic of a firm and the approach of top management for adjustment.


Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ulrich Schmitt

Purpose In further conceptualizing a novel generative knowledge management system (KM/KMS), this paper aims to focus on identifying and mitigating the risks related to its envisaged scaling from a prototype to an application with a rapidly growing user base. Design/methodology/approach It follows up on prior publications using design science research (DSR) methodologies in compliance with theory effectiveness, a principle expecting system designs to be purposeful in terms of utility and communication. The KMS perspective taken prioritizes a decentralizing agenda benefiting knowledge workers while also aiming to foster a fruitful co-evolution with conventional organizational KM approaches. Findings The utilization and further extension of the CKDT and a “scalable innovation” heuristic are assisting the detecting of potential scaling risks related to the logics and logistics, generative interoperability, technological capacitating, knowledge dynamics and value chain which further validates the viability of the proposed KM concept and system. Research limitations/implications Although the prototype development is still in progress, the paper conforms to the DSR practice to report on early visions of technology impact on users, organizations and society but also reflects on expectations of viability, desirability and commitment, as well as the system’s prospect as a general-purpose-technology or disruptive innovation. Originality/value In addition to the novel KM-related perspectives, the paper’s practical emphasis on the scaling of more complex systems is rarely dealt with in the literature due to the respective projects’ often large-scale collaborative nature, broad methodological scope and diverse stakeholders’ interests. In this case, the task is eased as prior DSR outputs can be referred to.


2019 ◽  
Vol 27 (1) ◽  
pp. 232-249
Author(s):  
Matloub Hussain ◽  
Mehmood Khan ◽  
Mian Ajmal ◽  
Bilal Ahmad Khan

Purpose Supply chain quality management (SCQM) has gained less attention in the Arab world, and there is a clear dearth in existing research on this topic, particularly in service organizations. Therefore, the purpose of this paper is to propose a conceptual framework for investigating the impact of SCQM and associated indicators on organizational performance (OP). Design/methodology/approach Empirical data have been collected through a survey distributed to a sample of major telecom companies in United Arab Emirates (UAE). To test the conceptual framework, structural equation modeling (SEM) has been used to analyze the data collected from 248 respondents of telecom companies. Findings The empirical data showed that SCQM practices are significantly correlated with innovation and operations performance. Statistical analysis through SEM also revealed that customer satisfaction has highest direct impact on OP. Research limitations/implications External factors (government regulations, policies and culture) also affect the SCQM practices. Hence, future work should incorporate these parameters as well. Practical implications This is a contribution to the continuing research into SCQM, giving supply chain managers and designers a practical way for measuring and implementing SCQM practices across service supply chains. Originality/value The contribution of this research, through successive stages of data collection, measurement analysis and refinement, is a set of reliable and valid framework that can be subsequently used in conceptualization and measuring quality of service supply chains.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aline Pietrix Seepma ◽  
Carolien de Blok ◽  
Dirk Pieter Van Donk

Purpose Many countries aim to improve public services by use of information and communication technology (ICT) in public service supply chains. However, the literature does not address how inter-organizational ICT is used in redesigning these particular supply chains. The purpose of this paper is to explore this important and under-investigated area. Design/methodology/approach An explorative multiple-case study was performed based on 36 interviews, 39 documents, extensive field visits and observations providing data on digital transformation in four European criminal justice supply chains. Findings Two different design approaches to digital transformation were found, which are labelled digitization and digitalization. These approaches are characterized by differences in public service strategies, performance aims, and how specific public characteristics and procedures are dealt with. Despite featuring different roles for ICT, both types show the viable digital transformation of public service supply chains. Additionally, the application of inter-organizational ICT is found not to automatically result in changes in the coordination and management of the chain, in contrast to common assumptions. Originality/value This paper is one of the first to adopt an inter-organizational perspective on the use of ICT in public service supply chains. The findings have scientific and managerial value because fine-grained insights are provided into how public service supply chains can use ICT in an inter-organizational setting. The study shows the dilemmas faced by and possible options for public organizations when designing digital service delivery.


2016 ◽  
Vol 20 (4) ◽  
pp. 219-222
Author(s):  
Ruth Marion Eley

Purpose The purpose of this paper is to highlight the need for proper involvement of people with dementia and carers in policy making and to suggest practical ways to achieve this. Design/methodology/approach Drawing from personal experience derived from a long career in service development in health and social care, the author outlines the importance of recognising that people with dementia and family carers are experts by experience and the merits of involving people at an early stage. Findings The best ideas come from involved people. Without the insights gained through the lived experiences of people with dementia and family carers, policy makers and professionals run the risk of developing costly services that do not meet the needs of those who will be using them. Practical implications A number of key practical pointers are developed and summarised. Engagement and one-off consultations are not enough. Real involvement has to be part of everyday practice, at all levels. It requires investment to enable people with dementia and carers to have a seat at the table, speak about what matters to them and help professionals develop relevant services that meet their needs. Originality/value The author is able to draw on particular insights gained as Programme Lead for Dementia at the Department of Health during the development of the first English National Dementia Strategy and, more recently, experience of developing engagement strategies in various localities. This included supporting people with dementia and family carers before, during and after key events at which they shared their experiences with commissioners and service providers.


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