Jan Holmström, William E. Hoover, Eero Eloranta and Antti Vasara
It is evident from examples such as Dell that successful shapers of the supply chain really do change the game, but how can your company do it? Value reengineering is a new…
Abstract
It is evident from examples such as Dell that successful shapers of the supply chain really do change the game, but how can your company do it? Value reengineering is a new approach for how a company can systematically implement breakthrough solutions for its customers. The key is finding the right value offering point in the customer:s demand chain. A company can then carve‐out a new business model that offers better value to the customer in a way that also helps lower costs.
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Jan Holmström, Timo Ala‐Risku, Jaana Auramo, Jari Collin, Eero Eloranta and Antti Salminen
The purpose of this paper is to propose demand‐supply chain representation as a tool to support economic organizing between original equipment manufacturers going downstream and…
Abstract
Purpose
The purpose of this paper is to propose demand‐supply chain representation as a tool to support economic organizing between original equipment manufacturers going downstream and customers considering how to better outsource maintenance and asset management.
Design/methodology/approach
This paper is a presentation of a representation tool using a design theory template.
Findings
The concept of demand visibility point and requirements penetration point can be used to describe different ways of economic organizing as interaction between demand and supply. The proposed representation scheme supports the identification of visibility‐based changes in economic organization, such as vendor‐managed inventory and reliability‐based maintenance services.
Research limitations/implications
The paper is conceptual and requires further empirical work.
Practical implications
The representation tool can be used both by practitioners engaged in outsourcing maintenance and practitioners involved in the development of industrial service offerings.
Originality/value
The paper introduces demand‐supply chain representation to development of industrial service offerings and outsourcing of maintenance activities.
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Jari Collin, Eero Eloranta and Jan Holmström
This paper aims to present an approach that two leading supply chain companies have used to identify and design alternative supply chain solutions according to their customers'…
Abstract
Purpose
This paper aims to present an approach that two leading supply chain companies have used to identify and design alternative supply chain solutions according to their customers' demand chains.
Design/methodology/approach
The paper describes industry best practice.
Findings
The supplier of telecommunications equipment found that by deploying three different supply chains that corresponded to three types of customers' demand chains it could simultaneously improve customer satisfaction and effectiveness. The supplier of fasteners found it could serve its different industrial customers with essentially two supply chain designs.
Research limitations/implications
This is a practical best practice description and does not aim to contribute to academic research. However, there are no academic contributions on procedures for supply chain re‐design according to customer demand chains. Thus, the best practice described in the paper implies a need for research on this type of supply chain customization.
Practical implications
Customer requirements and collaboration capabilities can be systematically taken into consideration in supply chain designs.
Originality/value
The paper presents a practical approach for taking both product characteristics and customer differences into account in supply chain re‐design.