The application of product service systems for hydraulic excavators

The concept of Product Service Systems (PSS) was introduced as an alternative business model for Original Equipment Manufacturers (OEMs), who are motivated to shift their traditional manufacturing focus towards the after-sale service, to meet the market demand and gain additional profit and market share. A PSS is a system that integrates product and service as one package at the point of sale. It is increasingly popular because customers are demanding more supplier involvement to prolong and maintain the life of products they purchase and keep them functioning at maximum performance levels. Furthermore, it is also widely accepted within the community that the PSS concepts enhance competitiveness and promote the shift towards sustainable practices and society simultaneously. The flexibility of different PSS models allows OEMs to open new opportunities to improve relationships between customers and suppliers, or better understand the strengths and weaknesses of their own business strategy and products. [Continues.]