A service decoupling point framework for logistics,manufacturing, and service operations

Abstract

Competing through goods only has turned out to be increasingly difficult unless efficiency and low-cost manufacturing are at the core of the business. Extending the offering by introducing customisation in combination with services has improved the effectiveness capability. Still, much remains to understand how these servitised businesses can be managed in an integrated fashion. Service operations management and manufacturing operations management have evolved along separate paths but are beginning to align, and by focusing on value adding processes some fundamental principles can be identified. Using a value driven and process-based approach the value offering is defined as provided by initial capabilities and adapting capabilities of the provider. From a supply chain perspective this is shown to be identical to the established approach of balancing efficiency and responsiveness (also referred to as leagility) based on the customer order decoupling point. As a consequence focus on efficiency is at the core of goods-based supply and focus on responsiveness is at the core of service-based supply.