Marketing complex product designs in the contemporary value chain
by Per Engelseth; Hamid Jafari
International Journal of Value Chain Management (IJVCM), Vol. 9, No. 4, 2018

Abstract: Theory on supply postponement and speculation has gained widespread use in industry to mitigate risk and improve customer value. We suggest alternative conceptualisation of product customisation focusing in the emergent properties of production in a value chain context. Based on the transvection model, servitisation theory, contingency theory focusing on interdependencies and complexity, we discuss how a variety of goods, information and service deliverables may be timed in relation to each other to customise in relation to customer value objectives. Through a single case study of retail distribution practices, an alternative modelling of supply timing is empirically grounded. The 'supply palette model' is introduced based on a fundamental view on products as technically fragmented entities, as well as the fact that production includes product design as emergent through complex supplier-customer interaction. This model serves as a marketing tool founded in operations practices by exposing the complexity of deliverables provided to customers associated with operational decision-making events. This study also exposes how marketing and supply chain management necessarily are, when supplying postponed products, integrated business functions.

Online publication date: Tue, 02-Oct-2018

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