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UK defence change and the impact on supply relationships

Author

Listed:
  • Thomas Johnsen

    (Audencia Recherche - Audencia Business School)

  • Mickey Howard

    (University of Bath [Bath])

  • Joe Miemczyk

    (Audencia Recherche - Audencia Business School)

Abstract

The paper's aim is to evaluate the changing patterns of defence requirements and their implications on supply chains and relationships within the UK defence industry. The paper builds a case study on the UK defence industry comprising 22 face-to-face interviews with senior management from the Ministry of Defence (MoD) and major first tier suppliers, as well as senior officers in the British armed forces. The results suggest that there are major changes currently taking place that have major impacts on defence supply relationships. The authors find a consensus in the industry concerning a shift towards through-life management (TLM), where major equipment platforms are kept in service for several decades. TLM is widely acknowledged as requiring much closer partnerships in the defence supply chain, in which suppliers assume much greater responsibilities in areas such as in-service support and maintenance. Yet the findings with MoD and suppliers reveal different perceptions of the feasibility and practical implications of the proposed changes. Product-service specific capabilities need to be developed especially in areas such as accurate lifecycle costing. The development of integrated supply partnerships requires greater emphasis on openness, risk and reward sharing, trust and long-term commitment in supplier relationships. There is also a need for early supplier involvement to ensure not only design for manufacture, but design for maintainability and logistics, instigated and managed by the customer (i.e. MoD). The analysis demonstrates the importance of adopting a through-life perspective when considering industrial contexts characterised by very long product lifecycles. This study shows that a through-life perspective creates a blurring of the boundary between customers and suppliers, and increases long-term supplier responsibility. This gives rise to new considerations, such as sophisticated risk and rewards sharing mechanisms, design for maintainability, and technology insertion.

Suggested Citation

  • Thomas Johnsen & Mickey Howard & Joe Miemczyk, 2009. "UK defence change and the impact on supply relationships," Post-Print hal-00771092, HAL.
    • Handle: RePEc:hal:journl:hal-00771092
    DOI: 10.1108/13598540910970108
    Note: View the original document on HAL open archive server: https://hal.science/hal-00771092
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    References listed on IDEAS

    as
    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    3. Lamming, Richard & Caldwell, Nigel & Phillips, Wendy & Harrison, Deborah, 2005. "Sharing Sensitive Information in Supply Relationships:: The Flaws in One-way Open-book Negotiation and the Need for Transparency," European Management Journal, Elsevier, vol. 23(5), pages 554-563, October.
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    Cited by:

    1. Ozgur T rpan, 2019. "Analyzing the Enablers for Turkish Defence Industry Supply Chains: An Interpretive Structural Modelling Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 205-212.
    2. Öhman, Mikael & Finne, Max & Holmström, Jan, 2015. "Measuring service outcomes for adaptive preventive maintenance," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 457-467.

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