Nicola Saccani

Performance measurement of the after-sales service network-Evidence from the automotive industry

The after-sales activities are nowadays acknowledged as a relevant source of revenue, profit and competitive advantage in most manufacturing industries. Top and middle management, therefore, should focus on the definition of a structured business performance measurement system for the after-sales business. In addition, since many actors are involved along the after-sale service supply chain, an integrated and multi-attribute set of measures needs to be designed consistently at every level of the supply chain. Nonetheless, little attention was devoted by scientific and managerial literature to this topic. The paper aims at filling this gap, and proposes an integrated framework for the after-sales network performance measurement, and provides an empirical application to two automotive case companies and their official service network. The cases show that performance measurement systems of different supply chain actors should be aligned in order to achieve strategic consistency. In particular, the performance of different actors at the process level of the framework concurs in determining the after-sales service overall performance towards the final customer. In addition, linkages at other levels (mainly the business and activity ones) may be needed or helpful in ensuring consistency between strategic and operational objectives, inside the organisations and thus for the whole supply chain.

Performance measurement systems in after-sales service: an integrated framework

In todays competitive markets, companies are shifting from a Product-centric to a Customer-centric view. The After-Sales (AS) service can become a key differentiator and a major profit source. Thus, after-sales cannot be considered simply a set of operative activities; rather it plays a strategic role, affecting the definition of the product-service mix offered to the customer and the physical and organisational configuration of the overall logistics chain. Therefore, importance should be given to its strategic management and to the definition of a structured business performance measurement system. In this context, this paper a) provides a review of the existing body of knowledge about AS performance measurement systems, b) proposes an integrated framework for AS performance measurement consisting of four levels (business, process, activity, and development and innovation), and c) provides an empirical application of the framework to four case studies in durable consumer goods – automotive, home appliances and consumer electronics.

The role and performance measurement of after‐sales in the durable consumer goods industries: an empirical study

Purpose – To analyse the role of after‐sales services in manufacturing contexts, and the related after‐sales performance measurement systems.Design/methodology/approach – An exploratory case study research was performed in the automotive, household appliance, IT and consumer electronics industries. The sample is made up of 48 firms with after‐sales operations in Italy.Findings – The role attributed to after‐sales activities in the IT and consumer electronics and household appliance industries shows an orientation to improve company image, customer satisfaction and retention (marketing focus). A different situation characterises the companies studied in the automotive industry. In most firms, however, measurement systems are quite simple and short‐term oriented, especially in the IT and consumer electronics and household appliance industries. The measurement of non‐financial performance emphasises effectiveness rather than efficiency, and the automotive industry, on the whole, presents more advanced measur...

Service development in product-service systems: a maturity model

The paper proposes a model for assessing the maturity of new service development (NSD) processes in manufacturing companies that offer product-services. The model adopts a five-stage scale on which key elements are evaluated according to the following dimensions: (1) the approach used to manage processes and projects (2) the use of specific resources, skills and tools (3) the involvement of customers, suppliers and other stakeholders and (4) the adoption of performance management systems. An empirical application of the model was carried out based on an inter-company workshop and in-depth interviews. Such a model allows not only to describe the maturity of NSD processes of a company but also to identify the main gaps and to prioritize improvement actions.

Integration techniques in customer-supplier relationships: An empirical research in the Italian industry of household appliances

Abstract The paper explores the management of customer–supplier relationships through the adoption of a set of practices supporting integration in interface processes. A classification of relevant integration techniques (i.e. decisions on how to manage interface processes) and tools (i.e. assets or resources that support the adoption of techniques) is provided: techniques are grouped into the operations, technological and strategic domains, while tools are divided into the information technology, management and organization classes. An in-field research in the Italian industry of components for household appliances provided the ground to measure the diffusion of techniques and tools in the relationships between component manufacturers and appliance OEMs. The study found that the most adopted are the techniques related to operations management, coherently with the industry priorities, while the diffusion of technological and strategic techniques is low. Tools, on the other hand, have generally a low diffusion rate, except for vendor rating systems and e-procurement. Analyzing firms’ efficiency and effectiveness performances, it is possible to notice how the best performing firms are the ones adopting the higher number of techniques and tools in all domains, while efficiency-oriented companies focus their integration practices (that are actually light) in the logistic domain, and growth-oriented companies give great importance to coordination in new product development and strategic planning.

Internal and external alignment in the servitization journey – overcoming the challenges

Research and anecdotal evidences indicate that manufacturers undertaking the path towards servitization face several challenges that may generate both internal inconsistencies, e.g. between the servitization strategy and the internal organisational arrangements, and external ones, e.g. with the customer needs and culture or with the service supplier network. This study provides a systematisation of 17 challenges of servitization through a literature review. Five case studies investigate empirically such challenges. A framework is developed, based on the research findings, which points out and discusses alignment areas in servitization. Two alignment directions concern internal aspects: (i) the strategic orientation and the service portfolio and (ii) the strategic orientation and the internal organisation. The other two alignment directions discussed concern: (iii) the internal dimensions with the service network and (iv) the internal dimensions with the customer one.

Combining make-to-order and make-to-stock inventory policies: an empirical application to a manufacturing SME

This article focuses on decoupling point and inventory policy decisions in manufacturing companies supplying products with different demand patterns and customisation levels. In such a context, adopting a pure make-to-order (MTO) approach may severely affect the response time for standard and regular products while, on the other hand, a pure make-to-stock (MTS) policy may result in excess inventory. To overcome this, companies tend to adopt hybrid and dynamic MTO–MTS policies, but decisions are often taken without the support of a rational model. In this article we develop a rational model to support inventory management decisions in a MTO–MTS context and bridge the gap between theory and practice. Starting from a real-life case study, we develop a decision-making approach that employs simple models, methods and tools, thus making it suitable for practical implementation in small and medium sized enterprises (SMEs). Different product characteristics are analysed in order to develop a framework for choosing the most suitable decoupling point and replenishment policy (such as economic order quantity, EOQ) and for determining the parameters of the chosen policy (such as lot size). The simplicity of the procedure together with the positive results achieved in this first case study implementation suggest that the new framework has the potential to improve the inventory policies adopted by SMEs in a MTO–MTS context and should be refined and developed through further case study research.

Managing the after-sales logistic network–a simulation study

The after-sales business has in recent years acquired a strategic role for firms manufacturing durable or capital goods, as it represents a source of revenue, profit and a means to achieve customer satisfaction and retention. The case study analysed in this article concerns a world player of heavy equipment based in Europe. This article analyses the spare parts classification method adopted by the company, and the allocation decisions concerning a second European warehouse and the transfer to that warehouse of a set of suppliers. A simulation model has been developed in order to support these choices. This study suggests that the support of quantitative methods such as spare part classification models and the use of simulation may be of great help to practitioners, in order to focus their effort on what really matters, to adopt cost-effective decisions and to assess the robustness of their decisions to varying exogenous conditions.

The role of digital technologies for the service transformation of industrial companies

The role of digital technologies in service business transformation is under-investigated. This paper contributes to filling this gap by addressing how the Internet of things (IoT), cloud computing (CC) and predictive analytics (PA) facilitate service transformation in industrial companies. Through the Data–Information–Knowledge–Wisdom (DIKW) model, we discuss how the abovementioned technologies transform low-level entities such as data into information and knowledge to support the service transformation of manufacturers. We propose a set of digital capabilities, based on the extant literature and the findings from four case studies. Then, we discuss how these capabilities support the service transformation trajectories of manufacturers. We find that IoT is foundational to any service transformation, although it is mostly needed to become an availability provider. PA is essential for moving to the performance provider profile. Besides providing scalability in all profiles, CC is specifically used to implement an industrialiser strategy, therefore leading to standardised, repeatable and productised offerings.

Business models for the service transformation of industrial firms

ABSTRACT This study comprehensively reviews the literature on the service transformation of industrial firms, applying the business model (BM) perspective. Despite the wide use of the BM terminology, a true BM approach to this phenomenon is an emergent trend. We provide a threefold contribution to the research debate. First, we identify the reasons of relevance of such a BM approach to the service transformation phenomenon. Second, based on a reference model, we provide a characterization of the service transformation literature according to the BM perspective, both from the structural and the content standpoints. Third, we outline four future research directions: (i) the comprehensive and detailed structural description of BMs; (ii) the adoption of a differentiated approach to BMs; (iii) the internal and external factors affecting the choice of BMs; (iv) the transition paths.