IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i4p2235-d750539.html
   My bibliography  Save this article

Case Study Research to Foster the Optimization of Supply Chain Management through the PSS Approach

Author

Listed:
  • Mario Fargnoli

    (Department of Mechanical and Aerospace Engineering, Sapienza—University of Rome, Via Eudossiana 18, 00184 Rome, Italy)

  • Nicolas Haber

    (Department of Mechanical and Aerospace Engineering, Sapienza—University of Rome, Via Eudossiana 18, 00184 Rome, Italy)

  • Massimo Tronci

    (Department of Mechanical and Aerospace Engineering, Sapienza—University of Rome, Via Eudossiana 18, 00184 Rome, Italy)

Abstract

The optimization of a product’s whole life cycle has become a mandatory task for manufacturers seeking to deal with circular economy requirements while gaining competitiveness in the market. In order to achieve such a sustainability goal, alignment of production, distribution, and field service activities is needed. In the literature, numerous studies indicate the product–service system (PSS) approach as one of the most promising business models to combine the needs of manufacturers and customers in an efficient and effective manner. However, PSS solutions aimed at practically optimizing supply chain management have scarcely been addressed. In order to reduce this gap, the current study proposes a procedure based on the PSS Functional Matrix, the Screening Life Cycle Modelling (SLCM) method, and stock management theory to optimize aftermarket services based on market demand. A case study in the medical equipment sector, where market demand can fluctuate during the contract period, is presented. The analytical results show beneficial effects in terms of both costs and environmental impact, suggesting the need for further research to augment knowledge on PSS and supply chain management. In particular, the PSS allowed the company to customize the manufacturer’s business model, adapting the supply of aftermarket services to varying customer needs.

Suggested Citation

  • Mario Fargnoli & Nicolas Haber & Massimo Tronci, 2022. "Case Study Research to Foster the Optimization of Supply Chain Management through the PSS Approach," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2235-:d:750539
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/4/2235/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/4/2235/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    2. Huiskonen, Janne, 2001. "Maintenance spare parts logistics: Special characteristics and strategic choices," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 125-133, May.
    3. Christopher M. Durugbo, 2020. "After-sales services and aftermarket support: a systematic review, theory and future research directions," International Journal of Production Research, Taylor & Francis Journals, vol. 58(6), pages 1857-1892, March.
    4. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    5. Johansen, Søren Glud, 2019. "Emergency orders in the periodic-review inventory system with fixed ordering costs and stochastic lead times for normal orders," International Journal of Production Economics, Elsevier, vol. 209(C), pages 205-214.
    6. Johannes Matschewsky & Marianna Lena Kambanou & Tomohiko Sakao, 2018. "Designing and providing integrated product-service systems – challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2150-2168, March.
    7. Vasilis C. Kapsalis & Grigorios L. Kyriakopoulos & Konstantinos G. Aravossis, 2019. "Investigation of Ecosystem Services and Circular Economy Interactions under an Inter-organizational Framework," Energies, MDPI, vol. 12(9), pages 1-29, May.
    8. Jingchen Hou & Andy Neely, 2018. "Investigating risks of outcome-based service contracts from a provider’s perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2103-2115, March.
    9. Zhaoyi Cui & Xiuli Geng, 2021. "Product Service System Configuration Based on a PCA-QPSO-SVM Model," Sustainability, MDPI, vol. 13(16), pages 1-22, August.
    10. Nicolas Haber & Mario Fargnoli, 2021. "Sustainable Product-Service Systems Customization: A Case Study Research in the Medical Equipment Sector," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    11. Mario Fargnoli & Nicolas Haber & Tomohiko Sakao, 2019. "PSS modularisation: a customer-driven integrated approach," International Journal of Production Research, Taylor & Francis Journals, vol. 57(13), pages 4061-4077, July.
    12. Federica Acerbi & Claudio Sassanelli & Sergio Terzi & Marco Taisch, 2021. "A Systematic Literature Review on Data and Information Required for Circular Manufacturing Strategies Adoption," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    13. Minkyu Kwon & Jihwan Lee & Yoo S. Hong, 2019. "Product-Service System Business Modelling Methodology Using Morphological Analysis," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    14. Nicolas Haber & Mario Fargnoli, 2017. "Design for product-service systems: a procedure to enhance functional integration of product-service offerings," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 22(2), pages 135-164.
    15. Tomohiko Sakao & Tatsunori Hara & Ryo Fukushima, 2020. "Using Product/Service-System Family Design for Efficient Customization with Lean Principles: Model, Method, and Tool," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    16. Sergio Cavalieri & Paolo Gaiardelli & Stefano Ierace, 2007. "Aligning strategic profiles with operational metrics in after‐sales service," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(5/6), pages 436-455, June.
    17. Visnjic, Ivanka & Jovanovic, Marin & Neely, Andy & Engwall, Mats, 2017. "What brings the value to outcome-based contract providers? Value drivers in outcome business models," International Journal of Production Economics, Elsevier, vol. 192(C), pages 169-181.
    18. Marek Szwejczewski & Keith Goffin & Zissis Anagnostopoulos, 2015. "Product service systems, after-sales service and new product development," International Journal of Production Research, Taylor & Francis Journals, vol. 53(17), pages 5334-5353, September.
    19. Carlos Pablo Sigüenza & Bernhard Steubing & Arnold Tukker & Glenn A. Aguilar‐Hernández, 2021. "The environmental and material implications of circular transitions: A diffusion and product‐life‐cycle‐based modeling framework," Journal of Industrial Ecology, Yale University, vol. 25(3), pages 563-579, June.
    20. Till Blüher & Theresa Riedelsheimer & Sonika Gogineni & Antje Klemichen & Rainer Stark, 2020. "Systematic Literature Review—Effects of PSS on Sustainability Based on Use Case Assessments," Sustainability, MDPI, vol. 12(17), pages 1-26, August.
    21. Emilia Ingemarsdotter & Ella Jamsin & Gerd Kortuem & Ruud Balkenende, 2019. "Circular Strategies Enabled by the Internet of Things—A Framework and Analysis of Current Practice," Sustainability, MDPI, vol. 11(20), pages 1-37, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wahiba Yaïci & Michela Longo, 2022. "Feasibility Investigation of Hydrogen Refuelling Infrastructure for Heavy-Duty Vehicles in Canada," Energies, MDPI, vol. 15(8), pages 1-31, April.
    2. Nicolas Haber & Mario Fargnoli, 2022. "Product-Service Systems for Circular Supply Chain Management: A Functional Approach," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    3. Salman Alfarisi & Yuya Mitake & Yusuke Tsutsui & Hanfei Wang & Yoshiki Shimomura, 2023. "Nurture: A Novel Approach to PSS-Rebound Effect Identification," Sustainability, MDPI, vol. 15(9), pages 1-25, April.
    4. Beata Michaliszyn-Gabryś & Janusz Krupanek & Mariusz Kalisz & Jonathan Smith, 2022. "Challenges for Sustainability in Packaging of Fresh Vegetables in Organic Farming," Sustainability, MDPI, vol. 14(9), pages 1-29, April.
    5. Luis Montesinos & Pedro Checa Rifá & Mireya Rifá Fabregat & Javier Maldonado-Romo & Stefano Capacci & Alessia Maccaro & Davide Piaggio, 2024. "Sustainability across the Medical Device Lifecycle: A Scoping Review," Sustainability, MDPI, vol. 16(4), pages 1-25, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Haber & Mario Fargnoli, 2021. "Sustainable Product-Service Systems Customization: A Case Study Research in the Medical Equipment Sector," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    2. Nicolas Haber & Mario Fargnoli, 2022. "Product-Service Systems for Circular Supply Chain Management: A Functional Approach," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    3. Lena Ries & Markus Beckmann & Peter Wehnert, 2023. "Sustainable smart product-service systems: a causal logic framework for impact design," Journal of Business Economics, Springer, vol. 93(4), pages 667-706, May.
    4. Nizar Abdelkafi & Jinou Xu & Margherita Pero & Federica Ciccullo & Antonio Masi, 2023. "Does the combination of sustainable business model patterns lead to truly sustainable business models? Critical analysis of existing frameworks and extensions," Journal of Business Economics, Springer, vol. 93(4), pages 597-634, May.
    5. Jackson, Canek & Pascual, Rodrigo & Mac Cawley, Alejandro & Godoy, Sergio, 2023. "Product–service system negotiation in aircraft lease contracts with option of disagreement," Journal of Air Transport Management, Elsevier, vol. 107(C).
    6. Zhaoyi Cui & Xiuli Geng, 2021. "Product Service System Configuration Based on a PCA-QPSO-SVM Model," Sustainability, MDPI, vol. 13(16), pages 1-22, August.
    7. Peng Zhang & Shaohua Jing & Zifeng Nie & Boyuan Zhao & Runhua Tan, 2021. "Design and Development of Sustainable Product Service Systems Based on Design-Centric Complexity," Sustainability, MDPI, vol. 13(2), pages 1-27, January.
    8. Yong Se Kim & Kumiko Suzuki & Seok Jin Hong, 2019. "Product Redesign for Service Considerations Using Affordances for Service Activities," Sustainability, MDPI, vol. 12(1), pages 1-20, December.
    9. Zaifang Zhang & Darao Xu & Egon Ostrosi & Hui Cheng, 2020. "Optimization of the Product–Service System Configuration Based on a Multilayer Network," Sustainability, MDPI, vol. 12(2), pages 1-25, January.
    10. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    11. Johannes Matschewsky, 2019. "Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    12. Karen V. Czachorowski, 2021. "Cleaning Up Our Act: Systems Engineering to Promote Business Model Innovation for the Offshore Exploration and Production Supply Chain Operations," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    13. Friedrich A. Halstenberg & Kai Lindow & Rainer Stark, 2019. "Leveraging Circular Economy through a Methodology for Smart Service Systems Engineering," Sustainability, MDPI, vol. 11(13), pages 1-36, June.
    14. Korkeamäki, Lauri & Kohtamäki, Marko & Parida, Vinit, 2021. "Worth the risk? The profit impact of outcome-based service offerings for manufacturing firms," Journal of Business Research, Elsevier, vol. 131(C), pages 92-102.
    15. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    16. Mariusz Salwin & Ilona Jacyna-Gołda & Andrzej Kraslawski & Aneta Ewa Waszkiewicz, 2022. "The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods," Sustainability, MDPI, vol. 14(7), pages 1-23, April.
    17. Mohamad Kaddoura & Marianna Lena Kambanou & Anne-Marie Tillman & Tomohiko Sakao, 2019. "Is Prolonging the Lifetime of Passive Durable Products a Low-Hanging Fruit of a Circular Economy? A Multiple Case Study," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    18. Moa Nyvall & Thomas Zobel & Cecilia Mark‐Herbert, 2023. "Use‐oriented business model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1314-1324, May.
    19. Sarunnoud Phuphisith & Kiyo Kurisu, 2022. "Understanding the Determinants and Motivations for Collaborative Consumption in Laundromats," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    20. Sgarbossa, Fabio & Peron, Mirco & Lolli, Francesco & Balugani, Elia, 2021. "Conventional or additive manufacturing for spare parts management: An extensive comparison for Poisson demand," International Journal of Production Economics, Elsevier, vol. 233(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2235-:d:750539. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.