Impact of Servitisation on Global Optimisation and Managing Uncertainties

Coursework

Table of Contents
INTRODUCTION...........................................................................................................................3
Servitisation.....................................................................................................................................3
Interact and efforts of servitisation in global optimisation..........................................................3
Uncertainties in supply chain and the way firms manage uncertainties......................................5
Potential barriers to and drawbacks of its implementation of servitisation.....................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Supply chain management can be defined as process and practice of managing flow of goods
and services. This practice of managing supply chain also includes processes for converting raw
material into final products. In other words, SCM is optimisation of products’ creation and flow
from sourcing of raw material to manufacturing and followed by this logistics and delivery to
final customers. Supply chain management integrates all planning and execution of movement of
materials, finance and information. Because of increasing complexity of production and supply
processing, supply chain management have undergone several advances and future development
are also taking place in supply chain management. This report will discuss impact of servitisation
on global optimisation and managing uncertainties. Followed by this report will also discuss
potential barriers and drawbacks of its implementation.
Servitisation
Servitisation can be defined as transformation of production facility of firm in which offering of
products extends to providing innovation and invaluable services alongside their products. In
other words, servitisation involves offering services to customers along with products that
manufacturing firm provides to customers (Kowalkowski and et.al., 2017). An example of
servitisation is that automobile organisations offer services for maintenance along with
automobile products. Concerned with supply chain servitisation is likely to create and enhance
complexity of supply chain of the organisation. This is because supplying products are easier but
when product also associates services it creates complexity in supply chain of the organisation.
This means that through regular supply chain products will be delivered to customers but how
will organisation supply maintenance services to customers.
Interact and efforts of servitisation in global optimisation
Global optimisation is concerned with optimisation of global market for a product or service and
concerned with servitisation it includes both product and service. Supply chain management in
global optimisation is very difficult and challenging but challenges and difficulty are higher
when they are combination of service and products by a manufacturing firm. This requires
manufacturing firms to effectively integrate its supply chain management in servitisation so that