Sustainable Value Proposition Design in a Product-Service System

Many companies have started to add services to their tangible products in order to defend themselves from increased competition from low-cost economies. Research regarding the transition towards product-service systems (PSS) and how the PSS providers' business models are affected exists, but there is a lack of research regarding how the suppliers to the PSS providers are affected by the transition towards PSS. Therefore, this thesis studies the situation for a supplier/partner to an OEM that has changed their business model to a PSS providing one. As the first step in a development of a new business model aims this thesis to provide guidelines for how to set up value propositions suitable for a supplier/partner in this new environment. When technologically complex products, such as aircraft engines, are provided through PSS offerings it is hard to translate customer needs into quality parameters, which makes it hard to sustain the value to customer over time. Therefore, how to keep the value offering sustainable over time is also investigated in this thesis. The aim of this study was to investigate how a sustainable value proposition can be designed for a product and technology supplier/partner to an OEM that offers PSS solutions. The research has been performed through studying relevant literature and collecting empirical data from a case company through semi-structured interviews and a workshop. The case company in this research is Volvo Aero Corporation (VAC). The empirical findings show that VAC wants to offer product-service bundled solution, which fit the whole spectra of PSS value propositions, to their partners/customers. To be able to deliver these different types of product-service bundled solutions different value propositions that suit the different kinds of PSS offerings are needed. Requirements that must be fulfilled to be able to offer and deliver the different types of value propositions exist in terms of securing sufficient information access, aligning the incentives of all actors involved and achieving an internal consensus of what is delivered

Supplier development practice: arising the problems of upstream delivery for a food distribution SME in the UK

The paper aims to emphasize on the impacts of the supplier development on reducing the defects in supplier quality for a food distribution small–medium sized enterprise (SME). An empirical study was conducted to measure the performance of the suppliers in three different key performance indicators of the outsourcing and supplier’s performance to arise the existing problems via information exchange, data collection and data analysis. It was found that supplier development through data and information exchange and better communication by any food distribution SME raises the problems more promptly. This can dramatically change the supplier’s behavior to improve the quality of the supplier’s service and products. It is suggested that more research is required to raise other key performance indicators and their related problems and to develop more improvement practices. Six sigma methodologies could be the potential good practices to be focused in future research studies. Supplier performance measurement, which encompasses data exchange and data collection, develops the systematic flow of information, which potentially improves the flow of goods and the whole food supply chain to address the final consumer satisfaction. The research took a novel approach in adopting some transport related key performance indicators of the food supply to the food distribution and retailing sector, which is almost a new approach in food industry

Information technology and performance management for build-to-order supply chains

En las siguientes líneas se plantea un artículo de reflexión que tiene en cuenta parte del marco teórico que sustenta la investigación titulada “Prácticas pedagógicas que promueven la competencia argumentativa escrita (CAE) en niños campesinos de los grados 4° y 5° del Centro Educativo Municipal La Caldera, Sede Principal de Pasto”, desarrollada en el año 2012. En él se contemplan los aportes de las ciencias del lenguaje y la comunicación, la teoría de la argumentación, la didáctica de la lengua escrita y los géneros discursivos, que dan cuenta de la necesidad de desarrollar la capacidad crítica en los estudiantes a través de la argumentación, lo cual implica transformar las prácticas pedagógicas para que se alejen de la transmisión de conocimientos y den paso a la comunicación, para que la palabra escrita sea apropiada de manera significativa

Supplier Development - Moving from a Reactive to a Proactive Approach

Leverantörsutveckling började under och efter andra världskriget att utvecklas i Japan. Traditionellt sett fokuserade industrin på leverantörer med lågt inköpspris och att byta ut leverantörer som inte presterade tillräckligt bra. Idag är det emellertid känt att byte av leverantörer inte är kostnadseffektivt och därmed har vikten av leverantörsutveckling ökat. Detta är även tydligt då både industrin och forskningen har fått ett ökat intresse för leverantörsutveckling. När företag idag fokuserar på sin kärnverksamhet är leverantörsutveckling en vital del i processen att öka ett företags konkurrenskraft. En starkt fungerande försörjningskedja, från underleverantör till kund, är det som stärker företag konkurrensmässigt. Fokus för detta projekt har varit att undersöka hur man går från ett reaktivt till ett proaktivt leverantörsutvecklingsarbete. Anledningen till att ABB Robotics önskade ett projekt om leverantörsutveckling var att de ville ha mer och djupare kunskap inom leverantörsutveckling för att kunna ta sig till nästa nivå inom området. Under projektet konstaterades att nästa steg för ABB Robotics är att börja arbeta mer proaktivt. Leverantörsutveckling har i studien analyserats kring fem olika faktorer; mål, aktiviteter, leverantörs nyckeltal, framgångsfaktorer och resultat av utvecklingsarbetet. Metoden som valdes för att nå ett trovärdigt resultat för studien var en multipel fallstudie. Fem företag besöktes och intervjuer hölls med 25 olika personer för att samla in empirisk data. På varje företag intervjuades både operativa och ledande personer för att generera en objektiv och grundlig förståelse för varje enskilt företag. I analysen användes först insamlad data i en cross-case analys för att hitta likheter och skillnader mellan företagen. Därefter jämfördes dessa med teorin från litteraturstudien och slutligen kategoriserades arbetet i de fem faktorerna som reaktiva respektive proaktiva. Det viktigaste resultatet från studien är vikten av en strategi för leverantörsutveckling. Strategins syfte är att samordna arbetet och de olika avdelningarna involverade i leverantörsutvecklingen. I och med detta är det mycket fördelaktigt att ha en dedikerad person på ledande nivå, ansvarig för leverantörsutvecklingen och dess strategi. Denna person bör ha ett holistiskt perspektiv och se till att den valda strategin implementeras. Samtidigt ger det ett större fokus på området i hela företaget. Leverantörsbasen bör kategoriseras och olika leverantörskategorier ska behandlas individuellt. Det vill säga, de mindre kritiska leverantörerna kan hanteras med strukturerade kontrakt och konkurrens mellan flera leverantörer, medan strategiska leverantörer ska erhålla det mesta av utvecklingsarbetet och ses som strategiska partners. En viktig faktor är att det köpande företaget förstår att leverantörsutveckling handlar om gemensamt arbete tillsammans med leverantörerna så att de i slutändan når målet, partnerskap. Ett företag måste alltså lägga resurser på att utveckla sina leverantörer och inte bara tvinga dem att utvecklas på egen hand. Det köpande företaget måste dessutom underlätta för leverantören, genom att utveckla sina egna processer så att leverantören får en möjlighet att prestera på topp. Ständiga förbättringar bör implementeras både hos leverantören och för de interna processerna hos det köpande företaget för att öka leverantörsprestandan.Supplier development was established during and after World War II in Japan. The industry is moving from a traditional approach where low purchasing price were the main focus and supplier switching was common. Today the high price of supplier switching is well known and the importance of supplier development has increased both in research and in the industry. When companies focus more and more on their core competences supplier development is very important to generate competitive advantage. The reason is because the performance of the whole supply chain sets the level of competitiveness. This project focuses on how to move from a reactive to a proactive approach within supplier development. The reason for this project is ABB Robotics’ lack of knowledge within supplier development and their need to take the next step in developing the area. This research analyze supplier development in terms of five factors; Objectives, Activities, Supplier KPI, Success factors and Outcome. To generate credible results for this research the method chosen is a multiple case study. Five case companies were visited, which resulted in interviews with 25 different people. Both operational and management levels were interviewed at each case company to obtain an objective and in-depth understanding for each individual case. This generated the data collected for the empirical findings, which was used together with the Frame of References as the foundation for the analysis. The analysis begins with a cross-case analysis to find differences and similarities between the cases. These findings are compared to the literature study. Finally supplier development efforts are categorized as reactive or proactive, based on literature and the empirical findings. The most important result of this study is the importance of having a strategy for supplier development to align the efforts at different departments involved. A dedicated person at management level with a holistic view and responsibility for implementing the strategy and increase focus of this area is recommended. The supplier base should be categorized and each category should be treated differently. Non-critical suppliers need a good contract and competition through multiple sourcing while the relationship with strategic suppliers should aim for partnership. Strategic suppliers should receive most development efforts to achieve partnership. It is also vital to see the supplier development as a mutual work together with the suppliers. The focal company needs to dedicate resources for development and facilitate for the suppliers so that they can perform at their top level. Continuous improvements should be implemented both at the suppliers and for internal processes at the focal company to increase supplier performance

Strategic and Operational Management of Supplier Involvement in New Product Development: a Contingency Perspective

This paper examines how firms succeed to leverage supplier involvement in product development. The paper extends earlier work on managing supplier involvement by providing an integrated analysis of results, processes and conditions both at the level of individual development projects and the overall firm. Following a multiple-case study approach with theoretical sampling, the study is carried out by examining eight projects in which four manufacturers from different industries involve multiple suppliers. The findings suggest that successful supplier involvement is dependent on the coordinated design, execution and evaluation of strategic, long-term processes and operational, short-term management processes and the presence of enabling factors such as a cross-functional oriented organization. The required intensity of these processes and enablers depends on contingencies such as firm size and environmental uncertainty. In contrast with previous research, we find no indications that managing supplier involvement requires a different approach in highly innovative projects compared to less innovative projects.innovation;new product development;purchasing;supplier relations;R&D management

Resilience in supplier management in energy industry

Abstract. Currently, there is variation and development need in Finnish companies how prepared and resilient they are against crisis and disruptions. In the energy industry, supply chain resilience (SCRes) is a critical part of strategic management due to its critical role in society and effect on competitiveness. Disruption effects to supply chain (SC) performance are minimized by proactive risk management and ensuring business continuity by different capabilities in buyer company and suppliers. Crisis and disruptions are not completely predictable or preventable and different capabilities ensure fast recovery from disruptions and crisis. The aim of this research is to define how SCRes can be managed and developed by supplier relationship management in the energy industry in Finland. The research consists of a literature review and empirical study implemented as qualitative research using a semi-structured interview. The research target is achieved by research questions defined below: RQ1: How can SCRes be defined in an energy industry context? RQ2: How to manage SCRes? RQ3: What capabilities are critical to be considered to ensure high SCRes in the energy industry in Finland? RQ4: How to improve SCRes in the energy industry in Finland? The key findings indicate that SCRes needs to be continuously assessed and improved by several intra-organizational and inter-organizational collaborative capabilities. Business Continuity Plan needs to be implemented proactively in collaboration with suppliers and other networks. SCRes is managed through the whole SC by systematic and proactive supplier relationship management (SRM). As the research is a wide interview study, the findings of this research can be utilized for other industrial fields by management and improvement of SCRes. It needs to be considered that the findings are subjective as done by one researcher.Alihankkijoiden resilienssiarviointi energiateollisuudessa. Tiivistelmä. Toimitusketjun resilienssi vaihtelee suomalaisissa yrityksissä ja siinä on kehitettävää sen mukaan, miten varautuneita ja kriisinkestäviä yritykset ovat. Energiateollisuudessa toimitusketjun resilienssi on kriittinen osa strategista johtamista yhteiskuntakriittisyyden ja kilpailukyvyn vaikutuksen vuoksi. Häiriöiden vaikutukset toimitusketjuun minimoidaan proaktiivisella riskienhallinnalla ja varmistamalla liiketoiminnan jatkuvuus erilaisilla kyvykkyyksillä. Kriisejä ja häiriöitä ei voida täysin ennustaa tai estää, joten erilaisia kyvykkyydet varmistavat nopean toipumisen kriiseistä. Tämän diplomityön tavoite oli selvittää, miten toimitusketjun resilienssiä voidaan johtaa ja kehittää toimittajasuhteiden hallinnan kautta energiateollisuudessa Suomessa. Tutkimus koostuu kirjallisuuskatsauksesta ja empiirisestä tutkimuksesta, joka on toteutettu laadullisena tutkimuksena puolistrukturoitujen haastatteluiden avulla. Tutkimuksen tavoitteet saavutetaan seuraavilla tutkimuskysymyksillä: TK1: Miten toimitusketjun resilienssi määritellään energiateollisuudessa? TK2: Miten toimitusketjun resilienssiä johdetaan? TK3: Mitkä tekijät ovat kriittisiä toimitusketjun korkean resilienssin varmistamisessa energiateollisuudessa Suomessa? TK4: Miten toimitusketjun resilienssiä voidaan kehittää energiateollisuudessa Suomessa? Keskeisimmät löydökset osoittavat, että toimitusketjun resilienssiä tulee parantaa jatkuvasti yritysten sisäisten kyvykkyyksien ja yritysten välisten, yhteistyöllä vahvistettavien kyvykkyyksien kautta. Liiketoiminnan jatkuvuussuunnitelma otetaan käyttöön proaktiivisesti yhteistyössä toimittajien ja muiden sidosryhmien kanssa. Toimitusketjun resilienssiä johdetaan koko toimitusketjun matkalla systemaattisen ja proaktiivisen toimittajahallinnan kautta. Koska kyseessä on laaja haastattelututkimus, löydöksiä voidaan soveltaa myös muille teollisuuden aloille toimitusketjun resilienssin johtamiseen ja kehittämiseen. On otettava huomioon, että löydökset ovat subjektiivisia yhden tutkijan tekemiä löydöksiä

"Hi, It's me again! Listen…" : How perceived supplier proactive customer orientation influences long-term relationship with the customer

The purpose of this thesis is to explore how customers experience the supplier proactive customer orientation facilitated by value-based selling effort, and how it affects the long-term business relationship with the customer. Research on long-term business relationships is important since there is tough competition for front-line positions in business-to-business markets. To explore connections between value-based selling, perceived supplier proactive customer orientation and commitment to relationship, the conceptual thinking of value-based selling (Terho et al. 2012; 2015) and the examination of proactive customer orientation and its role for creating customer value by Blocker et al. (2011) are applied. The phenomenon is investigated through concepts of value-based selling, proactive customer orientation, perceived supplier value, customer adaptiveness, satisfaction, trust, and loyalty. The study was conducted as an explanatory survey research among technology industry. The data consists of 42 returned questionnaires collected from the customer contacts of two global technology conglomerates operating in service business. The data was collected electronically in a cross-sectional survey among business-to-business customer contacts in Finland and in US. The research model is based on the concepts, and hypotheses set are empirically tested with quantitative research methods. The data was analysed by using PLS-SEM technique and SmartPLS 3.0 software. According to the results perceived supplier proactive customer orientation has a positive effect on the level of customer's perception on value and customer's willingness to adapt. Customers are more satisfied and trusting when they are willing to adapt their processes and daily routines. The customer level of trust and satisfaction is significantly increased when the perception on value is high. When customers experience trust towards the supplier, they also are more loyal. Increased loyalty together with trust and satisfaction enables the building of the long-term business relationships.Tutkimuksen tarkoituksena on selvittää, miten asiakkaat kokevat arvomyynnin kautta ilmentyvän toimittajan ennakoivan asiakaslähtöisyyden ja miten se vaikuttaa pitkäikäiseen liikesuhteeseen asiakkaan kanssa. Pitkäikäisten liikesuhteiden tutkimus on tärkeää, sillä b2b-markkinoilla vallitsee kova kilpailu etulinjan asemista. Arvomyynnin, asiakkaan kokeman toimittajan ennakoivan asiakaslähtöisyyden ja suhteeseen sitoutumisen välisten yhteyksien selvittämiseen sovelletaan arvomyynnin käsitteellistä ajattelua (Terho ym. 2012; 2015) sekä Blockerin ym. (2011) tutkimusta ennakoivan asiakaslähtöisyyden vaikutuksista asiakkaan arvon luontiin. Ilmiötä tutkitaan arvomyynnin, ennakoivan asiakaslähtöisyyden, koetun toimittaja-arvon, asiakkaiden sopeutumishalukkuuden, tyytyväisyyden, luottamuksen ja asiakasuskollisuuden käsitteiden avulla. Tutkimus suoritettiin selittävänä kyselytutkimuksena teknologiateollisuuden alalla. Aineisto koostuu 42 palautetusta kyselylomakkeesta, jotka on kerätty kahden globaalissa palveluliiketoiminnassa operoivan teknologiakonsernin asiakaskontaktien keskuudesta. Poikkileikkaustutkimuksen aineisto kerättiin sähköisesti b2b-asiakaskontakteilta Suomessa ja Yhdysvalloissa. Tutkimusmalli perustuu käsitteisiin ja hypoteesien empiirinen testaus suoritetaan kvantitatiivisilla tutkimusmenetelmillä. Aineisto analysoitiin PLS-SEM-tekniikalla käyttäen SmartPLS 3.0 -ohjelmistoa. Tulosten mukaan ennakoivalla asiakaslähtöisyydellä on positiivinen vaikutus asiakkaan arvokokemukseen ja asiakkaan sopeutumishalukkuuteen. Asiakkaat ovat tyytyväisempiä ja luottavaisempia, kun he ovat valmiita mukauttamaan prosessejaan ja päivittäisiä rutiinejaan. Asiakkaan luottamuksen ja tyytyväisyyden taso kasvaa merkittävästi, kun käsitys arvosta on korkea. Kun asiakkaat tuntevat luottamusta toimittajaa kohtaan, he ovat myös uskollisempia. Lisääntynyt uskollisuus yhdessä luottamuksen ja tyytyväisyyden kanssa mahdollistaa pitkäikäisten liikesuhteiden rakentumisen