Skip to main content

Exploring Product-Service Supply Dynamics in the Defence Industry

  • Chapter
  • First Online:

ABSTRACT

This contribution explores the concept of Through-Life Management (TLM) in the context of the UK defence supply strategy. For firms seeking to extend profit horizons and engender closer relationships with their customers, this paper asks: what are the implications of TLM for the supply strategy in the UK defence industry? The paper defines TLM as a distinct approach from total cost analysis and lifecycle costing, and explores the theoretical and practical implications of through-life supply strategy in a case study of the UK defence industry. The findings suggest that TLM has important implications on supply strategy, shifting the focus from front-end production to long-term through-life issues and requirements for dynamic buyer-supplier relationships across all phases of the product-service lifecycle. Our contribution suggests cost and performance (i.e. availability) are managed across the full life of a platform or facility, including in-service support, repair and upgrade, not just the acquisition phase. Hence the impact on supply strategy changes over time, requiring a more dynamic, agile response from both Ministry of Defence (MoD) buyers and industry suppliers to meet the demands of frontline operations.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   44.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Anderson, J.C. and Narus, J.A. (1990), ’A Model of Distributor Firm and Manufacturer Firm Working Partnerships’, Journal of Marketing, Vol. 54, No. 1, pp. 42–58.

    Article  Google Scholar 

  • Araujo, L. and Spring, M. (2006), ’Services, Products, and the Institutional Structure of Pro-duction’, Industrial Marketing Management, Vol. 35, No. 7, pp. 797–805.

    Article  Google Scholar 

  • Beckman, C.M. and Haunschild, P.R. (2002), ’Network learning: The effects of partners’ heterogeneity of experiences on corporate acquisitions’, Administrative Science Quarterly, Vol. 47, pp. 92–124.

    Article  Google Scholar 

  • Bengtsson, L. and Berggren, C. (2008), ’The integrator’s new advantage - The reassessment of outsourcing and production competence in a global telecom firm’, European Management Journal, Vol. 26, pp. 314–24.

    Article  Google Scholar 

  • Birou, L.M. and Fawcett, S.E. (1994), ’Supplier Involvement in Integrated Product Devel-opment’, International Journal of Physical Distribution & Logistics Management, Vol. 24, No. 5, pp. 4–14.

    Article  Google Scholar 

  • Blanchard, B.S. (1978), Design and Manage to Life Cycle Cost (Portlad, Oregon: M/A Press).

    Google Scholar 

  • Box, J.M.F (1983), ’Extending product lifetime: Prospects and opportunities’, European Jour-nal of Marketing, Vol. 17, No. 4.

    Google Scholar 

  • Caniels, M.C.J. and Gelderman, C.J. (2005), ’Purchasing strategies in the Kraljic matrix - a power and dependence perspective’, Journal of Purchasing & Supply Management Vol. 11, pp. 141–55.

    Article  Google Scholar 

  • Christopher, M. (2000), ’The Agile Supply Chain - Competing in Volatile Markets’, Industrial Marketing Management, Vol. 29, No. 34–44.

    Article  Google Scholar 

  • Clark, K.B. and Fujimoto, T. (1991), Product Development Performance: Strategy, Organization, and Management in the World Auto Industry (Boston: Harvard Business School Press).

    Google Scholar 

  • Cooper, R. and Slagmulder, R. (2004), ’Achieving Full-Cycle Cost Management’, Sloan Man-agement Review, Vol. Fall, pp. 45–52.

    Google Scholar 

  • Cox, A. (2001), ’The Power Perspective in Procurement and Supply Management’, Journal of Supply Chain Management: A Global Review of Purchasing & Supply, Vol. 37, No. 2, pp. 4–7.

    Article  Google Scholar 

  • Davies, A., Brady, T., and Hobday, M. (2006), ’Charting a Path Toward Integrated Solu-tions’, Sloan Management Review, Vol. 47, No. 3, pp. 39–48.

    Google Scholar 

  • Degraeve, Z., Labro, E., and Roodhooft, F. (2005), ’Constructing a total cost of ownership supplier selection methodology based on activity-based costing and mathematical pro-gramming’, Accounting and Business Research, Vol. 35, No. 1, pp. 3–27.

    Article  Google Scholar 

  • DIS (2005), ’Defence Industrial Strategy ’, in Ministry of Defence (ed.), (December; London).

    Google Scholar 

  • Dubois, A. and Pedersen, A-C. (2002), ’Why relationships do not fit into purchasing portfo-lio models: a comparison between the portfolio and industrial network approaches’, Euro-pean Journal of Purchasing & Supply Management,Vol. 8, No. 1, pp. 35.

    Article  Google Scholar 

  • Fernandez, A. (2001), ’Quantification of dependability’, European Conference on Safety and Reliability (Torino, Italy).

    Google Scholar 

  • Hayes, R. and Wheelwright, S.C. (1984), Restoring our Competitive Edge (New York: Wiley & Sons).

    Google Scholar 

  • Ireland, R. Duane and Webb, Justin W. (2007), ’A multi-theoretic perspective on trust and power in strategic supply chains’, Journal of Operations Management,Vol. 25, pp. 482–97.

    Article  Google Scholar 

  • Johnsen, T., Howard, M., and Miemczyk, J. (2009), ’UK defence change and the impact on supply relationships’, Supply Chain Management: An International Journal,Vol. 14, No. 4, pp. 270–79.

    Article  Google Scholar 

  • Johnstone, S., Dainty, A.R.J, and Wilkinson, A. (2009), ’Integrating products and services through life: an aerospace experience’, International Journal of Operations & Production Man-agement,Vol. 29, No. 5, pp. 520–38.

    Article  Google Scholar 

  • Jones, S.R. and Zsidisin, G.A. (2008), ’Performance implications of product life cycle exten-sion: the case of the a-10 aircraft’, Journal of Business Logistics,Vol. 29, pp. 189–214.

    Article  Google Scholar 

  • Kirkham, R.J. (2005), ’Re-engineering the whole life cycle costing process’, Construction Management and Economics,Vol. 23, pp. 9–14.

    Article  Google Scholar 

  • Kleyner, A. and Sandborn, P. (2007), ’Minimizing life cycle cost by managing product reli-ability via validation plan and warranty return cost’, International Journal of Production Eco-nomics,Vol. 112, No. 2, pp. 796–807.

    Article  Google Scholar 

  • Kovács, G. and Tatham, P. (2009), ’Responding to disruptions in the supply network - from dormant to action’, Journal of Business Logistics,Vol. 30, No. 2, pp. 215–29.

    Article  Google Scholar 

  • LaBahn, D.W. and Krapfel, R. (2000), ’Early Supplier Involvement in Customer New Prod-uct Development: A Contingency Model of Component Supplier Intentions’, Journal of Business Research,Vol. 47, No. 3, pp. 173–90.

    Article  Google Scholar 

  • Lambert, D.M. (ed.), (2006), Supply Chain Management: Processes, partnerships and performance (Second edn., Florida: Supply Chain Management Institute).

    Google Scholar 

  • Lee, H.L. (2004), ’The Triple-A Supply Chain’, Harvard Business Review, Vol. October.

    Google Scholar 

  • Linton, J. D. and Jayaraman, V. (2005), ’A framework for identifying differences and simi-larities in the managerial competencies associated with different modes of product life extension’, International Journal of Production Research,Vol. 43, No. 9, pp. 1807–29.

    Article  Google Scholar 

  • Loomba, A.P.S. (1996), ’Linkages between product distribution and service support func-tions’, International Journal of Physical Distribution & Logistics Management, Vol. 26, No. 4, pp. 4–22.

    Article  Google Scholar 

  • MacDonnell, M. and Clegg, B. (2007), ’Designing a support system for aerospace mainte-nance supply chains’, Journal of Manufacturing Technology Management, Vol. 18, No. 2, pp. 139–52.

    Article  Google Scholar 

  • McGuire, G.G. (1971), ’The Defense Department’s Use of Discounting in the Procurement of Equipment by the Life Cycle Costing Concept’, Journal of Purchasing, Vol. 7, No. 3, pp. 41–55.

    Google Scholar 

  • NAO (2003), ’Through-Life Management’, in National Audit Office Controller and Auditor General (ed.), HC 698 Session 2002-03.

    Google Scholar 

  • Oksanen, P., Hallikas, J., and Sissonen, H. (2010), ’The evolution of value networks’, Interna-tional Journal of Networking and Virtual Organisations, Vol. 7, No. 4, pp. 381–98.

    Article  Google Scholar 

  • Oliva, R. and Kallenberg, R. (2003), ’Managing the transition from Products to Services’, International Journal of Service Industry Management, Vol. 14, No. 2, pp. 160–72.

    Article  Google Scholar 

  • Paulraj, A. and Chen, I. J. (2007), ’Environmental uncertainty and strategic supply manage-ment: A resource dependence perspective and performance implications’, The Journal of Supply Chain Management: A Global Review of Purchasing and Supply, Vol. Summer, pp. 29–42.

    Google Scholar 

  • Persona, A., Regattieri, A., Pham, H., Battini, D. (2007), ’Remote control and maintenance outsourcing networks and its applications in supply chain management’, Journal of Opera-tions Management, Vol. 25, No. 6, pp. 1275–91.

    Article  Google Scholar 

  • Petersen, K.J., Handfield, R.B., and Ragatz, G.L. (2005), ’Supplier integration into new product development: coordinating product, process and supply chain design’, Journal of Operations Management, Vol. 23, No. 3/4, pp. 371–88.

    Article  Google Scholar 

  • Potts, G. (1988), ’Exploit your products service life cycle’, Harvard Business Review, Vol. Sept-Oct, pp. 32–36.

    Google Scholar 

  • Prahinski, C. and Kocabasoglu, C. (2006), ’Empirical research opportunities in reverse sup-ply chains’, Omega, Vol. 34, pp. 519–32.

    Article  Google Scholar 

  • Prasad, B. (1997), ’Re-engineering life-cycle management of products to achieve global suc-cess in the changing marketplace’, Industrial Management & Data Systems, Vol. 97, No. 3, pp. 90–98.

    Article  Google Scholar 

  • Saccani, N., Songini, L., and Gaiardelli, P. (2006), ’The role and performance of after-sales in the durable consumer goods industries: an empirical study’, International Journal of Produc-tivity and Performance Management, Vol. 55, No. 3/4, pp. 259–83.

    Article  Google Scholar 

  • Singh, P. and Sandborn, P. (2006), ’Obsolescence driven design refresh planning for sus-tainment-dominated systems’, The Engineering Economist, Vol. 51, pp. 115–39.

    Article  Google Scholar 

  • Smart, P., Bessant, J., and Gupta, A. (2007), ’Towards technological rules for designing in-novation networks: a dynamic capabilities view’, International Journal of Operations & Pro-duction Management, Vol. 27, No. 10, pp. 1069–92.

    Article  Google Scholar 

  • Stark, J. (2006), Product Lifecycle Management - 21st Century Paradigm for Product Realisation (London: Springer-Verlag).

    Google Scholar 

  • Staudenmayer, N., Tripsas, M., and Tucci, C.L. (2005), ’Interfirm Modularity and Its Impli-cations for Product Development’, Journal of Product Innovation Management, Vol. 22, No. 4, pp. 303–21.

    Article  Google Scholar 

  • Stringfellow, A., Teagarden, M.B., and Winter, N. (2008), ’Invisible costs in offshoring ser-vices work’, Journal of Operations Management, Vol. 26, No. 2, pp. 164–79.

    Article  Google Scholar 

  • Taylor, W.B. (1981), ’The use of life cycle costing in acquiring physical assets’, Long Range Planning, Vol. 14, No. 6, pp. 32–43.

    Article  Google Scholar 

  • Thierry, M., Salomon, M., Van Nunen, J., Van Wassenhove, L. (1995), ’Strategic issues in product recovery management’, California Management Review, Vol. 37, No. 2, pp. 114–36.

    Article  Google Scholar 

  • Toffel, M.W. (2003), ’The Growing Strategic Importance of End-of-Life Product Manage-ment’, California Management Review, Vol. 45, No. 3, pp. 102–29.

    Article  Google Scholar 

  • Vargo, S. and Lusch, R. (2004), ’Evolving a New dominant Logic for Marketing’, Journal of Marketing, Vol. 68, No. 1, pp. 1–17.

    Article  Google Scholar 

  • Ward, Y. and Graves, A. (2007), ’Through-life management: the provision of total customer solutions in the aerospace industry’, International Journal of Services Technology and Manage-ment, Vol. 8, No. 6, pp. 455–77.

    Article  Google Scholar 

  • Winter, S. (2003), ’Understanding Dynamic Capabilities’, Strategic Management Journal, Vol. 24, pp. 991–95.

    Article  Google Scholar 

  • Womack, J. and Jones, D.T. (1996), ’Beyond Toyota: How to root out Waste and pursue Perfection’, Harvard Business Review, Vol., No. September-October, pp. 140–58.

    Google Scholar 

  • Womack, J.P. and Jones, D.T. (2005), ’Lean Consumption’, Harvard Business Review, Vol. 83, No. 3, pp. 58–68.

    Google Scholar 

  • Yang, X. (2007), ’Product lifecycle information acquisition and management for consumer products’, Industrial Management & Data Systems, Vol. 107, No. 7, pp. 936–53.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Joe Miemczyk .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer Fachmedien Wiesbaden

About this chapter

Cite this chapter

Miemczyk, J., Howard, M., Johnsen, T. (2014). Exploring Product-Service Supply Dynamics in the Defence Industry. In: Eßig, M., Glas, A. (eds) Performance Based Logistics. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-8349-3726-1_9

Download citation

  • DOI: https://doi.org/10.1007/978-3-8349-3726-1_9

  • Published:

  • Publisher Name: Springer Gabler, Wiesbaden

  • Print ISBN: 978-3-8349-3081-1

  • Online ISBN: 978-3-8349-3726-1

  • eBook Packages: Business and Economics (German Language)

Publish with us

Policies and ethics