Time-based responsive logistics for a maintenance service network

Abstract

PurposeThe purpose of this paper is to identify the main reasons for spare parts logistics failures and address logistics distribution design in order to achieve the desired level of after-sales maintenance service.Design/methodology/approachThis research is based on an empirical case study on a large corporation providing worldwide with retail banking hardware, software and services. The case study focuses on the automated teller machine (ATM) part of activities, with a focus on the spare parts distribution and after-sales service network in the Eastern Europe.FindingsThe proposed network solution of multiple distribution centers with short-cut distance saving approach will enable the case study company to redesign their spare part logistics architecture in order to achieve short response time. Research findings reveal possible spare parts delivery delays and thus the service-level agreement failures with clients in the case study company.Research limitations/implicationsThis research covers a particular supply chain environment and identified research gaps. It discusses a time-based responsive logistics problem and develops a conceptual framework that would help researchers to better understand logistics challenges of installed equipment maintenance and after-sales service.Originality/valueThis case study research shows the “big picture” of spare parts logistics challenges as vital part of installed equipment after-sales and maintenance service network, as well as emphasizes how the unique context of a market like Russian Federation can set-up a distribution network efficiently. Strategies applied to handle such service-level failures, reverse logistics aspects of repairable and non-repairable spare parts to such large ATM after-sales service network based on this longitudinal case offer value for similar scale companies.