The optimization of pricing strategy for the wind power equipment aftermarket service

Purpose Although the wind power industry has been booming in China during the last decade, the development of wind turbine aftermarket service is still lagging behind, which seriously affects the operational efficiency of wind farms. If wind turbine manufacturers get involved in the aftermarket, the service pricing policy will impact the profits of both the manufacturer and the wind farm. Therefore, it is necessary to discuss an optimal service pricing strategy in the wind turbine aftermarket and design a method to improve electricity generation efficiency through service contract design. The paper aims to discuss these issues. Design/methodology/approach In order to decide the maintenance quantity and channel effort level, the authors design a normal Stackelberg game and an efficiency value-added revenue-sharing contract and discuss two kinds of revenue increment sharing models under situations, in which the supply chain’s leaders are the wind farm and the wind turbine manufacturer, respectively. Findings The results show that in either case, there exist optimal power generation revenue-sharing ratios that can maximize profit. At the same time, the authors outline an optimal service pricing policy, maintenance demand policy and channel service effort-level policy. The results summarize the influences of wind aftermarket services on wind farms’ and wind turbine manufacturers’ profit, which provides managerial insights into the process of manufacturing servitization. Practical implications The manufacturer’s channel effort level will influence the power generation increments very much, so the authors have developed a mechanism to stimulate the manufacturer improving the efficiency of aftermarket services. Originality/value Taking the power generation increment revenue as the profit increment function, the authors discuss the influence of service price on the profit increment of the wind farm and the wind turbine manufacturer and also consider the influence of service price on the wind farms maintenance quantity and wind turbine manufacturers channel effort level.

Big data in spare parts supply chains

Purpose The purpose of this paper is to explore and propose how product-in-use data can be used in, and improve the performance of, the demand planning process for automotive aftermarket services. Design/methodology/approach A literature review and a single case study investigate the underlying reasons for the demand for spare parts by conducting in-depth interviews, observing actual demand-generating activities, and studying the demand planning process. Findings This study identifies the relevant product-in-use data and divides them into five main categories. The authors have analysed how product-in-use data are best utilised in planning spare parts with different attributes, e.g. different life cycle phases and demand frequencies. Furthermore, the authors identify eight potentially relevant areas of application of product-in-use data in the demand planning process, and elaborate on their performance effects. Research limitations/implications This study details the understanding of what impact context has on the potential performance effects of using product-in-use data in aftermarket demand planning. Propositions generate several strands for future research. Practical implications This study shows the potential impact of using product-in-use data, using eight different types of interventions for spare parts, in the aftermarket demand planning. Originality/value The literature focusses on single applications of product-in-use data, but would benefit from considering the context of application. This study presents interventions and explores how these enable improved demand planning by analysing usage and effects.

Research on the Service System of Wind Power Equipment Aftermarket

With a lot of wind power farms were built and put into operation, the importance of constructing aftermarket and developing aftermarket services becomes more and more obvious to wind power equipment manufacturers. In this paper, the motivations for wind power equipment manufacturers to develop aftermarket services were analyzed. A service system of wind power equipment aftermarket based on wind power industry service alliance was proposed.

Expanding the Reliability Process to More Accurately Assess Business Risks and Opportunities Associated With Long-Term Maintenance Contracts

Many aerospace manufacturers, including Rolls -Royce, have expanded beyond direct product sales into a variety of aftermarket services. Long-term maintenance agreements are a prime example, where the customer pays an agreed monthly fee and the manufacturer takes responsibility for all covered repairs and maintenance. The company’s obligation to cover future repair costs brings with it the need to accurately predict those costs years into the future. This infers a need for detailed and accurate service data, advanced analysis methods and tools, and effective communication of analysis results. Recognizing this, Rolls-Royce formed a cross-functional team to assess these needs and to design an improved reliability process that meets them. This paper describes the improved process recommended by the team, along with the rationale supporting this recommendation.