The Role of SCM in the Product-Service Systems Integration Process: A Case Study in the Automotive Industry

Abstract

Purpose: Little research has been conducted on the important role of supply chain management in developing and implementing servitization. Most manufacturers struggle to design, develop, and implement the product-service systems (PSS) business model. This study seeks to explore the supply chain's (SC) function in the design, development, and implementation of servitization. Firstly, the present study focuses on the design for SC, design for Product and Service (PS) supportability, and Internet of Things (IoT) technologies concerning the design for PSS. Secondly, the study aims to improve the servitization measurement systems by enhancing SC practices. Lastly, this study examines the role of SC viability in the context of servitization. Design/methodology/approach: The present study employs a multiple-case study research design to collect primary data from four global car manufacturers and two research scholars through in-depth interviews. Findings: First, the present study emphasises the need for improved SC design to develop a service supportability approach, which subsequently aids in designing the PSS. Furthermore, IoT technologies enable manufacturers to facilitate the continuous evolution of the PSS business model. Ultimately, enhancing the design of PSS is crucial for reinforcing the integration of PS offerings. Second, the study highlights the importance of measuring servitization progress and outcomes to enhance the servitization process and offerings. In particular, SC viability practices are essential in improving the entire PSS lifecycle. Finally, this paper stresses the need for increased viability across the SC and in the servitization process to strengthen recovery and adaptation to the new normal SCs. Practical implications: This study proposes that developing the PS viability model is essential for managing servitization challenges and opportunities across the SC. Originality/value: This paper is among the first studies to explore SC viability in the context of servitization within a dynamic business environment, examining different PSS interactions. Keywords: servitization, product-service systems, designing process, supply chain viability, recovery strategy, adapting to the new normal, automotive industry