Regan notes that the change in the business model we ’ ve seen in IT means that companies will have to look at that same business model with the physical service they provide . “ For example , if I get a puncture on my car tyre , I buy a new one then 20,000 miles later replace the set … why can ’ t I buy a tyre as a service ?” he asks . “ The manufacturer can come along and replace it for me when they tell me it needs replacing , based on sensor information that picks up on degradation and performance .
That approach to buying products as a service will become more commonplace . That has an effect on the manufacturing space because it changes what they produce , and the way they do it , while altering the dynamics of the supply chain . Inventory replenishment at stockists point of sale will still be needed , but the relationship will not always be with the distributor and will move more towards being direct to the consumer .”
Regan concludes : “ We ’ re going to see a philosophical shift because the primary stakeholder has changed . The challenge is to think with their mind set and understand what the end consumer wants .”
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