A lifecycle perspective on buyer-supplier collaboration in process development projects

Purpose - Development and implementation of new process equipment within the process industries frequently necessitate strong collaboration between process firms and their equipment suppliers in joint process development projects. However, collaboration in this setting entails significant challenges over the lifecycle of these projects. Accordingly, the purpose of this article is to explore the problems and opportunities faced by equipment suppliers during collaboration with process firms, throughout the various lifecycle stages of process development projects. Design/methodology/approach - The article synthesizes results from 22 interviews in a multiple case study of eight equipment suppliers in the process industries and a comprehensive review of relevant literature to identify critical problems of opportunities during the lifecycle. In total, data were gathered from firms in six different countries. Findings - A deficient pre-study may create problems due to miscommunication during development when close interaction is required. Purchasing discussions can be done simultaneously to development when a supplier has been selected, although uncertainty is a problem. It is important to get end-user feedback and commitment during development and later stages. During assembly and installation and start-up, a variety of actors are working simultaneously which requires coordination and planning from an early stage. Close interaction and education with end-user is critical for the technology transfer in the start-up stage. Sharing of experiences enhances operational performance during production. Research limitations/implications - This study contributes by employing information rich case study data to describe the problem and opportunities faced over the full lifecycle in joint process development projects in the process industry. In particular, key issues over the lifecycle have been identified and described (e.g. purchasing, start-up, education). Moreover, the adoption of a lifecycle perspective has indicated how activities, issues, and managerial challenges in specific stages are interconnected and affect the joint work in the following stages. Practical implications - The findings of this article serves as guidelines to managers in equipment supplier firms and their customers by highlighting the problems and opportunities for improvement that occur during the interconnected stages of process development projects. Originality/value - By focusing on the collaborative activities in different stages, this study higlights the critical problems and opportunities in the lifecycle of process equipment. In addition this article outlines how joint process development activities can facilitate enhanced operational performance, by means of collaborative design, installation and operation of new process equipment - i.e. "open operation".