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We illustrate how new service concepts, where product suppliers are integrated and more involved in customers' operations, enable suppliers to organise their own supply chains more efficiently, while simultaneously providing better service to customers. A case study of a process equipment supplier illustrates how the company's new value-added maintenance services, including planning of the customer's maintenance operations and inventory management of the customer's spare parts, could help the supplier to improve its operational efficiency. However, the proposed benefits of increased planning possibilities, improved planning accuracy and reduced stock-keeping units are not gained automatically. Moreover, the operations planning competencies for the customer and the supplier are demanding if such benefits are to accrue.
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Auramo et al. (2004) studied this question.
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