An optimisation framework for improving supply chain performance: case study of a bespoke service provider

Abstract

A service supply chain can be described as a system of systems with a highly interactive and complex network of suppliers, service providers, OEMs and customers. Supply chain management could create value for bespoke service providers, customers and stakeholders cooperating through the supply chain. Bespoke service provider companies are responsible for managing their asset based on different service contracts and possibly through the end of the asset lifetime. Providing a through-life service requires tailored strategic dimensions to measure the supply chain performance. The performance can be evaluated with regards to several supply chain elements such as demand management, procurement, logistics, etc. This article takes a different angle to the current supply chain performance frameworks by discussing performance through DMAIC cycle. Considering a through-life service, this paper presents a performance optimization framework to improve the supply chain performance in terms of an asset or component availability and cost of service. Moreover, an exhaustive list of KPIs to evaluate the supply chain performance are identified. A case study of fleet management for a bespoke service provider is considered to test the validity of the framework. The DMAIC technique has demonstrated to be an effective method to improve supply chain strategies and performance.