The purpose of this paper is to summarize previously reported benefits, drawbacks and important aspects for implementation of performance-based logistics (PBL), and to identify knowledge gaps.
This is a literature review based on 101 articles. The reviewed articles are relevant to PBL in particular, but also to performance contracting, product-service systems (PSS) and servitization in general. The research method involved database searches, filtering results and reviewing publications.
PBL is a business concept that aims to reduce the customer's total costs for capital-intensive products and increase the supplier's profit. The design of the contract, performance measurements and payment models are important aspects for successful implementation. However, the authors find a reason for concern to be the lack of empirical evidence of the profitability of PBL for the customer and the supplier.
This literature review of PBL also includes publications from the related research areas: performance contracting, PSS and servitization. Developing PBL can benefit from results in these research areas.
The authors are grateful for the financial support provided by the Swedish Governmental Agency for Innovation Systems (Vinnova). The authors thank our colleagues Dr Rickard Garvare, Helena Ranängen and Peder Lundkvist for their constructive criticism and creative ideas that have improved this paper. The authors also thank the anonymous reviewers for valuable comments that significantly improved this paper.
Holmbom, M., Bergquist, B. and Vanhatalo, E. (2014), "Performance-based logistics – an illusive panacea or a concept for the future?", Journal of Manufacturing Technology Management, Vol. 25 No. 7, pp. 958-979. https://doi.org/10.1108/JMTM-06-2012-0068Download as .RIS
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