Knowledge@wharton

Imagine paying for your car only when it works. Or your television. Or even your high-end toaster. That might sound far-fetched but it could be the future model for purchases requiring service over time. According to research by two Wharton professors of operations and information management Morris Cohen and Serguei Netessine and doctoral student Sang-Hyun Kim this new approach to service supply chains is already reshaping customer-supplier relationships in defense and aerospace contracting under the name ”Performance-based Logistics” (PBL). It could have implications for certain retail sectors as well. See acast.com/privacy for privacy and opt-out information.