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Business Model Innovation at the Interface Between Global Production Systems and Local Demand

In: Contemporary Operations and Logistics

Author

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  • Peter Wells

    (Cardiff University)

Abstract

In this chapter, the evolving role of transport and logistics as the crucial intermediary processes between supply and demand is shown to be in tension. That is, the quest for least-cost manufacturing, in part enabled by the financial efficiency of mass transport via container ships, has resulted in the spatial dispersal of production and, inevitably, long lead times in supply. Simultaneously, the growth in the on-demand economy with instant gratification, again enabled by the financial efficiency of local delivery systems, has resulted in a growing ‘separation’ of demand from supply. The chapter argues that the entire production–consumption nexus may morph in unpredictable yet important ways, and that business model innovation is one mechanism by which organisations may seek to manage these tectonic shifts. The chapter highlights that further disruptive change is likely, in part arising from further technological innovations but more profoundly because dispersed production and concentrated consumption in the form of rampant urbanisation is not sustainable in a fundamental sense.

Suggested Citation

  • Peter Wells, 2019. "Business Model Innovation at the Interface Between Global Production Systems and Local Demand," Springer Books, in: Peter Wells (ed.), Contemporary Operations and Logistics, chapter 0, pages 45-60, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-14493-7_4
    DOI: 10.1007/978-3-030-14493-7_4
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