Вы находитесь на странице: 1из 45

Service Supply Relationships

Service Supply Relationships
Service Supply Relationships
Service Supply Relationships
Service Supply Relationships
Service Supply Relationships
Supply Chain for Physical Goods Suppliers Recycling/Remanufacturing Process and Customer Manufacturing Distribution
Supply Chain for Physical Goods Suppliers Recycling/Remanufacturing Process and Customer Manufacturing Distribution
Supply Chain for Physical Goods Suppliers Recycling/Remanufacturing Process and Customer Manufacturing Distribution
Supply Chain for Physical Goods Suppliers Recycling/Remanufacturing Process and Customer Manufacturing Distribution

Supply Chain for Physical Goods

Suppliers Recycling/Remanufacturing Process and Customer Manufacturing Distribution Retailing Customer Product
Suppliers
Recycling/Remanufacturing
Process and
Customer
Manufacturing
Distribution
Retailing
Customer
Product
Service
Design
Material transfer
Information transfer
Are Services ‘Intangible’?  Services are ``intangible products.'' If this were true, then service supply
Are Services ‘Intangible’?  Services are ``intangible products.'' If this were true, then service supply
Are Services ‘Intangible’?  Services are ``intangible products.'' If this were true, then service supply
Are Services ‘Intangible’?  Services are ``intangible products.'' If this were true, then service supply

Are Services ‘Intangible’?

Services are ``intangible products.'' If this were true, then service supply

chains would involve the sourcing and

delivery of intangibles.

As such, a major challenge in supply chain management would be dealing with the intangible nature of the product

It’s Different  Intangibles may be difficult to store – JIT delivery is a requirement,
It’s Different  Intangibles may be difficult to store – JIT delivery is a requirement,
It’s Different  Intangibles may be difficult to store – JIT delivery is a requirement,
It’s Different  Intangibles may be difficult to store – JIT delivery is a requirement,

It’s Different

Intangibles may be difficult to store

JIT delivery is a requirement, not an option

– „Production smoothing‟ is a non-issue

It can be difficult to account for

intangibles

Intangibles are not used up, but are continually available for sale

Inability to measure (account for) changing

levels of the intangible product

It’s Different  It could be difficult to identify the supplier of intangibles – Services
It’s Different  It could be difficult to identify the supplier of intangibles – Services
It’s Different  It could be difficult to identify the supplier of intangibles – Services
It’s Different  It could be difficult to identify the supplier of intangibles – Services

It’s Different

It could be difficult to identify the supplier of intangibles

Services may be viewed as coming from a

lot of suppliers, including many who are not compensated for supplying it

But is it really „intangible‟?

Other Definitions  A service is a personal performance (Levitt, 1972).  A service is
Other Definitions  A service is a personal performance (Levitt, 1972).  A service is
Other Definitions  A service is a personal performance (Levitt, 1972).  A service is
Other Definitions  A service is a personal performance (Levitt, 1972).  A service is

Other Definitions

A service is a personal performance (Levitt, 1972).

A service is a product which is a

process (Henkoff, 1994; Shostack,

1987).

Services are processes involving customer contact (Chase, 1978).

A service is a deed, act or performance (Berry, 1980).

All services can fit into one or more of four categories: (Lovelock 1996) 1. Services
All services can fit into one or more of four categories: (Lovelock 1996) 1. Services
All services can fit into one or more of four categories: (Lovelock 1996) 1. Services
All services can fit into one or more of four categories: (Lovelock 1996) 1. Services

All services can fit into one or more of four categories: (Lovelock 1996)

1. Services that act on people's minds (e.g. education, entertainment, psychology);

2. Services that act on people's bodies (e.g.

transportation, lodging, funeral services);

3. Services that act on people's belongings (e.g. landscaping, dry cleaning, repair);

4. Services that act on people's information (e.g.

insurance, investments, legal services).

Customer-Supplier Duality in Service Supply Relationships (Hubs) Supplier Service Design Service Provider Customer
Customer-Supplier Duality in Service Supply Relationships (Hubs) Supplier Service Design Service Provider Customer
Customer-Supplier Duality in Service Supply Relationships (Hubs) Supplier Service Design Service Provider Customer
Customer-Supplier Duality in Service Supply Relationships (Hubs) Supplier Service Design Service Provider Customer

Customer-Supplier Duality in

Service Supply Relationships (Hubs)

Supplier
Supplier
Duality in Service Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material

Service

Design

Service

Provider

Customer
Customer
Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material transfer Information transfer
Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material transfer Information transfer
Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material transfer Information transfer

Material transfer

Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material transfer Information transfer

Information transfer

Supply Relationships (Hubs) Supplier Service Design Service Provider Customer Material transfer Information transfer
Single-Level Bidirectional Service Supply Relationship Service Customer > Input Service Category -
Single-Level Bidirectional Service Supply Relationship Service Customer > Input Service Category -
Single-Level Bidirectional Service Supply Relationship Service Customer > Input Service Category -
Single-Level Bidirectional Service Supply Relationship Service Customer > Input Service Category -

Single-Level Bidirectional

Service Supply Relationship

Service

Customer

>

Input

Service

Category

-

Supplier

Output>

Provider

Minds

 

Student

>Mind

Professor

 

Knowledge>

Bodies

 

Patient

>Tooth

Dentist

 

Filling>

Belongings

 

Investor

>Money

Bank

 

Interest>

Information

 

Client

>Documents

Tax Preparer

 

1040>

Two-Level Bidirectional Service Supply Relationship Service Customer > Input Service > Input
Two-Level Bidirectional Service Supply Relationship Service Customer > Input Service > Input
Two-Level Bidirectional Service Supply Relationship Service Customer > Input Service > Input
Two-Level Bidirectional Service Supply Relationship Service Customer > Input Service > Input

Two-Level Bidirectional Service

Supply Relationship

Service

Customer

>

Input

Service

>

Input

Provider’s

Category

-

Supplier

Output>

Provider

Output>

Supplier

Minds

Patient

>Disturbed

Therapist

>Prescription

Pharmacy

 

Treated>

Drugs>

Bodies

 

Patient

>Blood

Physician

>Sample Test Result>

Lab

 

Diagnosis>

Belongings

 

Driver

>Car

Garage

>Engine

Machine

 

Repaired>

Rebuilt>

Shop

Information

 

Home

>Property

Mortgage

>Location

Title

Buyer

Loan>

Company

Clear Title>

Search

Single-level Bi-Directional Supply Chain
Single-level Bi-Directional Supply Chain
Single-level Bi-Directional Supply Chain
Single-level Bi-Directional Supply Chain

Single-level Bi-Directional Supply

Chain

Single-level Bi-Directional Supply Chain
Two-level Bi-Directional Supply Chain
Two-level Bi-Directional Supply Chain
Two-level Bi-Directional Supply Chain
Two-level Bi-Directional Supply Chain

Two-level Bi-Directional Supply

Chain

Two-level Bi-Directional Supply Chain
Uni-Directional Supply Chain  Customer provides input to Service Provider  After processing, Service Provider
Uni-Directional Supply Chain  Customer provides input to Service Provider  After processing, Service Provider
Uni-Directional Supply Chain  Customer provides input to Service Provider  After processing, Service Provider
Uni-Directional Supply Chain  Customer provides input to Service Provider  After processing, Service Provider

Uni-Directional Supply Chain

Customer provides input to Service Provider After processing, Service Provider delivers to an entity other than Customer

Interactive Exercise The class divides into small groups and members come up with examples of
Interactive Exercise The class divides into small groups and members come up with examples of
Interactive Exercise The class divides into small groups and members come up with examples of
Interactive Exercise The class divides into small groups and members come up with examples of

Interactive Exercise

The class divides into small groups and members come up with examples of

multilevel bidirectional service

relationships (i.e, service supplier relationships with three or more levels).

Practical Implications  Bidirectional supply chains are generally short – Service stages are simultaneous as
Practical Implications  Bidirectional supply chains are generally short – Service stages are simultaneous as
Practical Implications  Bidirectional supply chains are generally short – Service stages are simultaneous as

Practical Implications

Bidirectional supply chains are generally short

Service stages are simultaneous as far as

service-provider involvement is concerned Extremely compressed supply chain

Service providers usually do not pay for inputs coming from customer-suppliers

Variable Costs are negligible –

Practical Implications  Bidirectional supply chains are inherently JIT – Service Provider can not regulate
Practical Implications  Bidirectional supply chains are inherently JIT – Service Provider can not regulate
Practical Implications  Bidirectional supply chains are inherently JIT – Service Provider can not regulate
Practical Implications  Bidirectional supply chains are inherently JIT – Service Provider can not regulate

Practical Implications

Bidirectional supply chains are

inherently JIT

Service Provider can not regulate delivery of input

Once input is present, output is expected immediately (JIT)

Planning of inventory may be beneficial

Bidirectional supply chains have implicit

expectations for value added

Sources of Value in Service Supply Relationships  Bi-directional Optimization  Managing Productive Capacity -
Sources of Value in Service Supply Relationships  Bi-directional Optimization  Managing Productive Capacity -
Sources of Value in Service Supply Relationships  Bi-directional Optimization  Managing Productive Capacity -
Sources of Value in Service Supply Relationships  Bi-directional Optimization  Managing Productive Capacity -

Sources of Value in Service

Supply Relationships

Bi-directional Optimization

Managing Productive Capacity

- Transfer: make knowledge available (e.g.

web based FAQ database)

-

server (e.g. digital blood pressure device)

Embellishment: enable self-service by teaching (e.g. change surgical dressing)

-

Replacement: substitute technology for

Management of Perishability

Why its bothering  Supply base issues – Manufacturers are faced with three levels of
Why its bothering  Supply base issues – Manufacturers are faced with three levels of
Why its bothering  Supply base issues – Manufacturers are faced with three levels of
Why its bothering  Supply base issues – Manufacturers are faced with three levels of

Why its bothering

Supply base issues

Manufacturers are faced with three levels

of decisions pertaining to determining the

supply base

make versus buy (vertical integration)

many versus few suppliers (supplier selection)

supplier selection

Why its bothering  Supply Chain Integration – Manufacturing supply chains become integrated by co-ordinating
Why its bothering  Supply Chain Integration – Manufacturing supply chains become integrated by co-ordinating
Why its bothering  Supply Chain Integration – Manufacturing supply chains become integrated by co-ordinating
Why its bothering  Supply Chain Integration – Manufacturing supply chains become integrated by co-ordinating

Why its bothering

Supply Chain Integration

Manufacturing supply chains become

integrated by co-ordinating the efforts

among the various stages of the supply chain by way of

Communication

Partnering and

Vendor development

 Service Design – In manufacturing processes, supply chain concepts motivate design which considers the
 Service Design – In manufacturing processes, supply chain concepts motivate design which considers the
 Service Design – In manufacturing processes, supply chain concepts motivate design which considers the
 Service Design – In manufacturing processes, supply chain concepts motivate design which considers the

Service Design

In manufacturing processes, supply chain

concepts motivate design which considers the

needs and capabilities of various players in the process. It is not good enough to be “locally optimal”, meaning that each element of

the supply chain does what is in its own best

interest without regard for players up or down the supply chain

Service Blueprinting

Impact of Service Supply Relationships Element or Link Before After Channel Structure Functional silos
Impact of Service Supply Relationships Element or Link Before After Channel Structure Functional silos
Impact of Service Supply Relationships Element or Link Before After Channel Structure Functional silos
Impact of Service Supply Relationships Element or Link Before After Channel Structure Functional silos

Impact of Service Supply Relationships

Element or Link Before After Channel Structure Functional silos Process orientation Service Recipient

Element or Link

Element or Link

Before

After

Before After
Channel Structure Functional silos Process orientation Service Recipient Passive Active as a co-producer
Channel Structure Functional silos Process orientation Service Recipient Passive Active as a co-producer
Channel Structure Functional silos Process orientation

Channel Structure

Functional silos

Process orientation

Channel Structure Functional silos Process orientation
Service Recipient Passive Active as a co-producer

Service Recipient

Passive

Active as a co-producer

Service Recipient Passive Active as a co-producer
 

Channel Integration

Vertical (own the channel to

Virtual (IT and other

 

integrate)

mechanism permit integration

without ownership)

without ownership)

without ownership)
Flow of Service Available waiting for demand Activated upon demand

Flow of Service

Available waiting for demand

Activated upon demand

Flow of Service Available waiting for demand Activated upon demand
 

Flow of Information

Pull: manual reporting of

Push: high level of connectivity

(upstream)

demand data results in

and transparency with fast or

 

delayed management

instantaneous access to most

response. recent demand data.

response.

recent demand data.

response. recent demand data.
 

Flow of Information

Little or no knowledge of

Real-time tracking and

(downstream) resource deployment dispatching

(downstream)

resource deployment

dispatching

(downstream) resource deployment dispatching
 

Business Processes

Predominantly in-house;

In-house for key processes,

 

locally optimized for

others out-sourced for

efficiency

flexibility; integrated and

 

synchronized to match supply

with demand

with demand

with demand
 

Demand Management

Limited to use of

Proactive involving customer in

 

appointments and

scheduling to achieve bi-

reservations.

directional optimization

Impact of Service Supply Relationships Element or Link Capacity Management   Facilitating Goods  
Impact of Service Supply Relationships Element or Link Capacity Management   Facilitating Goods  
Impact of Service Supply Relationships Element or Link Capacity Management   Facilitating Goods  
Impact of Service Supply Relationships Element or Link Capacity Management   Facilitating Goods  

Impact of Service Supply Relationships

Element or Link

Element or Link

Capacity Management

  Facilitating Goods   Service Delivery   Routing and scheduling   New Service Design  
 

Facilitating Goods

  Facilitating Goods   Service Delivery   Routing and scheduling   New Service Design   Pricing
 

Service Delivery

  Facilitating Goods   Service Delivery   Routing and scheduling   New Service Design   Pricing
 

Routing and scheduling

Goods   Service Delivery   Routing and scheduling   New Service Design   Pricing  
 

New Service Design

Service Delivery   Routing and scheduling   New Service Design   Pricing   International Operations
 

Pricing

Service Delivery   Routing and scheduling   New Service Design   Pricing   International Operations
 

International

Operations

  Routing and scheduling   New Service Design   Pricing   International Operations

Before

After

After

Creative use of cross-trained

employees, outsourcing, and

customer self-service.

Creative use of cross-trained employees, outsourcing, and customer self-service.

Limited to use of part-time

employees

 
 

High; in anticipation of

Lower; owing to process

demand

transparency

demand transparency

Inflexible; standardized and

Flexible; personable with

impersonal

customization possible.

impersonal customization possible.

Static; fixed daily schedules

Dynamic; based on system

connectivity and process

visibility

visibility

Marketing initiatives based on

Virtual value chain design with

firm's perception of customer

customer data base information

needs

driving new services

needs driving new services

Fixed

Variable; yield management

promotes off-peak demand and

avoid idle capacity

avoid idle capacity

Focus on domestic market

Global reach with Internet

Outsourcing Services  Benefits - allows the firm to focus on its core competence -
Outsourcing Services  Benefits - allows the firm to focus on its core competence -
Outsourcing Services  Benefits - allows the firm to focus on its core competence -
Outsourcing Services  Benefits - allows the firm to focus on its core competence -

Outsourcing Services

Benefits

- allows the firm to focus on its core competence - service is cheaper to outsource than perform in- house

- provides access to latest technology

- leverage benefits of supplier economy of scale

Risks

- loss of direct control of quality

- jeopardizes employee loyalty

- exposure to data security and customer privacy

- dependence on one supplier compromises future negotiation leverage

- additional coordination expense and delays

- atrophy of in-house capability to perform service

Outsourcing Process Need Identification Information Search Vendor Selection Problem Def inition Ref erences
Outsourcing Process Need Identification Information Search Vendor Selection Problem Def inition Ref erences
Outsourcing Process Need Identification Information Search Vendor Selection Problem Def inition Ref erences
Outsourcing Process Need Identification Information Search Vendor Selection Problem Def inition Ref erences

Outsourcing Process

Need Identification Information Search Vendor Selection Problem Def inition Ref erences Experience Cost "Do-v
Need Identification
Information Search
Vendor Selection
Problem Def inition
Ref erences
Experience
Cost
"Do-v ersus-Buy " Analy sis
Personal Contact
Reputation
Location
Inv olv e Interested Parties
Recommendations
Ref erences
Size
Specif ication Dev elopment
Trade Directory
Performance Evaluation
Identif y Ev aluator
Meet Deadlines
Quality of Work
Flexibility
Communication
Dependability
Taxonomy for Outsourcing Business Services Importance of Service   Low High Facility Support: Equipment
Taxonomy for Outsourcing Business Services Importance of Service   Low High Facility Support: Equipment
Taxonomy for Outsourcing Business Services Importance of Service   Low High Facility Support: Equipment
Taxonomy for Outsourcing Business Services Importance of Service   Low High Facility Support: Equipment

Taxonomy for Outsourcing

Business Services

Importance of Service

 

Low

High

Facility Support:

Equipment Support:

 

Property

-Laundry

-Repairs

 

-Janitorial

-Maintenance

Focus

-Waste disposal

-Product testing

Employee Support:

Employee Development:

of

People

-Food service

-Training

 

-Plant security

-Education

-Temporary personnel

-Medical care

Service

Facilitator:

Professional:

 

Process

-Bookkeeping

-Advertising

 

-Travel booking

-Public relations

-Packaged software

-Legal

Outsourcing Considerations Focus on Property Facility Support Service • Low cost • Identify responsible party
Outsourcing Considerations Focus on Property Facility Support Service • Low cost • Identify responsible party
Outsourcing Considerations Focus on Property Facility Support Service • Low cost • Identify responsible party
Outsourcing Considerations Focus on Property Facility Support Service • Low cost • Identify responsible party

Outsourcing Considerations

Focus on Property

Facility Support Service

• Low cost

• Identify responsible party to evaluate performance

Precise specifications can be written

Equipment Support Service

• Experience and reputation of vendor

• Availability of vendor for emergency response

• Designate person to make service call and to

check that service is satisfactory

Outsourcing Considerations Focus on People Employee Support Service • Contact vendor clients for references •
Outsourcing Considerations Focus on People Employee Support Service • Contact vendor clients for references •
Outsourcing Considerations Focus on People Employee Support Service • Contact vendor clients for references •
Outsourcing Considerations Focus on People Employee Support Service • Contact vendor clients for references •

Outsourcing Considerations

Focus on People

Employee Support Service

• Contact vendor clients for references

• Specifications prepared with end user input

• Evaluate performance on a periodic basis

Employee Development Service

• Experience with particular industry important

• Involve high levels of management in vendor

identification and selection

• Contact vendor clients for references

• Use employees to evaluate vendor performance

Outsourcing Considerations Facilitator Service Focus on Process • Knowledge of alternate vendors important • Involve
Outsourcing Considerations Facilitator Service Focus on Process • Knowledge of alternate vendors important • Involve
Outsourcing Considerations Facilitator Service Focus on Process • Knowledge of alternate vendors important • Involve
Outsourcing Considerations Facilitator Service Focus on Process • Knowledge of alternate vendors important • Involve

Outsourcing Considerations

Facilitator Service

Focus on Process

• Knowledge of alternate vendors important

• Involve end user in vendor identification

• References or third party evaluations useful

• Have user write detailed specifications

Professional Service

• Involve high level management in vendor

identification and selection

• Reputation and experience very important

• Performance evaluation by top management

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry
Example Software Industry

Example Software Industry

Example Software Industry
Services Supply Chain Model • End-to-end processes link entities • Based on out-sourced services •
Services Supply Chain Model • End-to-end processes link entities • Based on out-sourced services •
Services Supply Chain Model • End-to-end processes link entities • Based on out-sourced services •
Services Supply Chain Model • End-to-end processes link entities • Based on out-sourced services •
Services Supply Chain Model • End-to-end processes link entities • Based on out-sourced services •

Services Supply Chain Model

Services Supply Chain Model

End-to-end processes link entities

Based on out-sourced services

Capacity and Service Delivery identified as key processes ………a service process viewpoint

THE IUE-SSC MODEL Baltacioglu et al 2007 • • of customer • Core & supporting
THE IUE-SSC MODEL Baltacioglu et al 2007 • • of customer • Core & supporting
THE IUE-SSC MODEL Baltacioglu et al 2007 • • of customer • Core & supporting

THE IUE-SSC MODEL

THE IUE-SSC MODEL Baltacioglu et al 2007 • • of customer • Core & supporting services

Baltacioglu et al 2007

THE IUE-SSC MODEL Baltacioglu et al 2007 • • of customer • Core & supporting services

of customer

Core & supporting services

Unique transaction requiring presence

Process relevance …….a service supply chain viewpoint

supporting services Unique transaction requiring presence Process relevance …….a service supply chain viewpoint

THE IUE-SSC MODEL (extended)

Information Flow & Technology Management

Network Supporting Services Supply Base Service Delivery Supplier A Supplier D Service The Supplier B
Network Supporting Services Supply Base
Service Delivery
Supplier A
Supplier D
Service
The
Supplier B
Consumer
Provider
Service
Supplier E
Supplier C
Demand Management
Capacity & Resources Management
Supplier Relationship Management
Service Performance
Management
Order Process
Management
Customer Relationship Management
Product based supply chains Service based supply chains Tangible, physical Intangible Transported from
Product based supply chains Service based supply chains Tangible, physical Intangible Transported from

Product based supply chains

Service based supply chains

Tangible, physical

Intangible

Transported from production to point of consumption

‘Consumed’ at point of production

Customer removed from

Customer contributes to

production process

production process

Inventory buffers variability of demand (& supply)

Resources buffer variability of demand

Capital intensive

Resource intensive

Standard & mass produced

Unique & customised

Linear; sequential

Networked; non-sequential

intensive Standard & mass produced Unique & customised Linear; sequential Networked; non-sequential
intensive Standard & mass produced Unique & customised Linear; sequential Networked; non-sequential
intensive Standard & mass produced Unique & customised Linear; sequential Networked; non-sequential
intensive Standard & mass produced Unique & customised Linear; sequential Networked; non-sequential
intensive Standard & mass produced Unique & customised Linear; sequential Networked; non-sequential
Travel ChaCha – Ready when you are… 1. Where are opportunities for bidirectional optimization? 2.
Travel ChaCha – Ready when you are… 1. Where are opportunities for bidirectional optimization? 2.
Travel ChaCha – Ready when you are… 1. Where are opportunities for bidirectional optimization? 2.

Travel ChaCha – Ready when you are…

1. Where are opportunities for bidirectional optimization?

2. How can they manage service

perishability?

3. How can they manage productive

bidirectional optimization? 2. How can they manage service perishability? 3. How can they manage productive capacity?

capacity?

bidirectional optimization? 2. How can they manage service perishability? 3. How can they manage productive capacity?