Logistics and Supply Chain Management, 6th Edition

Implications of servitisation for logistics

As we have already commented, most of the tools and techniques developed over the years to manage logistics have been designed with physical products in mind. These tools are still relevant today but they need to be augmented to reflect the impact of servitisation.

Some of the most important implications of this shift in emphasis are summarised below:

• ●With the shift from owning to using, the responsibility for supporting and maintaining the product is now with the supplier or original equipment manufacturer (OEM).
• ●Customers who have contracted with suppliers for the provision of performance will expect continuous ‘up time’ and so the need for preventative maintenance and total care type arrangements ...