Positioning of spare part contracts in the servitisation process

Sabaei, Davood and Erkoyuncu, John and Roy, Rajkumar (2015) Positioning of spare part contracts in the servitisation process. Procedia CIRP, 38. pp. 106-111. ISSN 2212-8271 (https://doi.org/10.1016/j.procir.2015.08.035)

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In today's competitive market, servitisation as a relatively new term in academia and industry is finding its place to offer services within selling products, as after sale products and sometimes offering services instead of products. Different types of servitisation have been introduced during the last two decades, where each implementation has its own demands and effects on the revenue and efficiency of companies in different sectors. The aim of this paper is to address and position spare part contracts as a form of servitisation in industries and look at its demands and features. For this paper, literatures relating to servitisation and its different types have been studied with keywords such as: servitisation, spare part contracts and support contracts, then positioning the spare part contracts in servitisation concept has been studied and tried to show the difference between service supply chain and product supply chain. Gaps in the literature have been identified such as the financial benefits of spare part contracts as a part of servitisation concept, supply chain of different spare part contracts, and clarifying the detailed differences between of spare part contracts with other servitisation forms such contract for availability, and contracts for capability from the supply chain point of view, revenues and responsibilities of involved partners.