Exploring product-service supply dynamics in the defence industry
Résumé
This contribution explores the concept of Through-Life Management (TLM) in the context of the UK defence supply strategy. For firms seeking to extend profit horizons and engender closer relationships with their customers, this paper asks: what are the implications of TLM for the supply strategy in the UK defence industry? The paper defines TLM as a distinct approach from total cost analysis and lifecycle costing, and explores the theoretical and practical implications of through-life supply strategy in a case study of the UK defence industry. The findings suggest that TLM has important implications on supply strategy, shifting the focus from front-end production to long-term through-life issues and requirements for dynamic buyer-supplier relationships across all phases of the product-service lifecycle. Our contribution suggests cost and performance (i.e. availability) are managed across the full life of a platform or facility, including in-service support, repair and upgrade, not just the acquisition phase. Hence the impact on supply strategy changes over time, requiring a more dynamic, agile response from both Ministry of Defence (MoD) buyers and industry suppliers to meet the demands of frontline operations.