The manufacturer's value chain as a service - the case of remanufacturing

Manufacturing enterprises globally have already largely adopted the product-service strategy into their operations. However, due to gradual commoditization of services, manufacturing enterprises will have to further extend this strategy. One possibility is for manufacturers to servitize, not only their final products, but also a part of their value chain, with the aim of increasing their long-term competitive advantage. In this article, the application of servitization to remanufacturing, as a set of operational and business competences and processes, is conceptualized. By offering remanufacturing as a service, manufacturers will create an additional revenue stream. The synergies created from integrating remanufacturing into an enterprise with a product-service system are scrutinized. The impact of offering remanufacturing as a service (servitizing) is then assessed from the perspective of the competitive advantage of both, the provider and the consumer of the service. Three main sets of implications are identified. The first is that the integration of remanufacturing into a product-service system could increase customer satisfaction through a larger service scope and higher service quality, while decreasing operational costs. Furthermore, it is shown that the higher the level of servitization, the stronger is the positive impact of remanufacturing. The second set of results shows that servitizing remanufacturing can substantially increase the competitive advantage of both the provider and the consumer. While the first two sets of results have industrially oriented implications, the third set constitutes a theoretical contribution through the proposal and conceptual validation of extension of the application of servitization theory. Finally, while the reasoning is of a conceptual nature, it is based on established theories and includes remanufacturing-related industrial cases as a basis for assessment

The Cornerstone of Sustainability Strategy in Manufacturing Enterprises

Sustainability has already been seen to impact positively the competitive advantage of an enterprise. Nonetheless managing sustainability still too often represents a conundrum. Consequently, the aim of this article is to help managers of manufacturing enterprises to understand, from an integrative perspective, the impact of the concept of sustainability onto their enterprise, with the objective to increase their long-term success. Thus, it was first assayed, if sustainability is a strategy and what are its main characteristics. To ensure validity, we leaned on the most renowned definitions of “strategy”. Secondly, an integrative framework for sustainability in manufacturing enterprises was designed, depicting the interrelations among the enterprise’s core elements (strategies, tactics, operations) and also with the environment (legislature and market), while dedicating special attention the concept of “fit”. The results altogether creates the cornerstone of the strategy of sustainability for manufacturing enterprises

Servitization of the Manufacturer’s Value Chain

Part III: Sustainable ServicesInternational audienceServitization, the offering of product-services, is a more and more pervasive concept. When applied correctly, it exploits the product and generates additional added value for the manufacturer as for the customer. Until now, servitization has been applied only onto the usage phase of the product, creating services around it. However the product is not the only valuable and tradable asset in a manufacturing enterprise. Therefore this article scrutinizes the possibility to additionally exploit the manufacturer’s value chain, by servitizing its components and hence transforming them into products per se. To test this possibility Thoben’s seminal representation of servitization was taken and applied onto the components of the value chain identified by Porter. It was elucidated that the proposed concept is feasible and under certain circumstances, it increases the seller’s and buyer’s sustainable competitive advantage. The article concludes by questioning the effect of this novel concept onto sustainability

Information – The Hidden Value of Servitization

Part III: Sustainable ServicesInternational audienceToday, in a product-service offering, the product and its related services can represent two main sources of revenue streams for the manufacturer. Tomorrow, information deriving from servitization and exploited on an ecosystem level, could represent the third one, whereas due to their ample potential in sharp market value increase, they could even become the manufacturer’s main revenue stream. This article of explorative nature questions the possibility to introduce such disruptive approach. In order to do so, servitization is evinced through a new perspective, through information. In order to exploit this new potential, the concept of an information ecosystem is introduced. Secondly, a new role is proposed, helping manufacturers to span the boundary between product and service. To depict the impact of the introduced concepts while positioning it in relevant literature, a third layer of added value was added to Thoben’s representation of servitization levels [1], the information layer