Management Operation

#6 Supply Chain Management in Services

Dr Palti Marulitua Sitorus

Bandung 2021
 Supply-Chain Management

The objective of supply chain management is to

coordinate activities within the supply chain to
maximize the supply chain’s competitive advantage
and benefits to the ultimate consumer
 The Supply Chain’s Strategic Importance

▪The coordination of all supply chain activities, starting

with raw materials and ending with a satisfied
customer
▪Includes suppliers, manufacturers and/or service
providers, distributors, wholesalers, retailers, and final
customer
 The Supply Chain’s Strategic Importance

▪Large portion of sales dollars spent on purchases

▪Supplier relationships increasingly integrated and long
term
▪ Improve innovation, speed design, reduce costs
▪Managing supplier relationships has added emphasis
The Supply For Physical Goods
Supply Chain Management on Services

Service Supply Relationships Are

Hubs, Not Chains
Service Supply Bidirectional Relationships
Single-Level Bidirectional Service Supply Relationships
Two-Level Bidirectional Service Supply Relationships
Supply Chain Management on Services

▪ Service Capacity Is Analogous to Inventory

▪ Customer Supplied Inputs Can Vary in Quality

Impact of Service Relationship Management on Home Health Care
Attribute of Professional Service Firms

Cognitive knowledge (know-what)

is the basic mastery of a discipline achieved through extensive training
and certification. This knowledge is necessary but not sufficient for
commercial success.

Advanced skills (know-how)

translate “book learning” into effective execution. The ability to apply
the rules of a discipline to complex real-world problems is the most
widespread value-creating professional skill level.
James Brian Quinn, Philip Anderson, and Sydney Finkelstein
Attribute of Professional Service Firms
Systems understanding (know-why)
is deep knowledge of the web of cause-and-effect
relationships underlying the discipline. Professionals with know-why
can anticipate subtle interactions and unintended consequences. The
ultimate expression of a systems understanding is highly trained
intuition.
Self-motivated creativity (care-why)
consists of will, motivation, and adaptability for success. Without self-
motivated creativity, intellectual leaders can lose their knowledge
advantage through complacency..

James Brian Quinn, Philip Anderson, and Sydney Finkelstein

Operational Characteristics

Margin

Productivity

Leverage

Leverage is the ratio of the number of professional staff members to the

number of partners, an essential factor in determining the profit-per-
partner.

Margins often are the most-utilized factor in measuring the profitability

of departments within a professional services firm. Unfortunately,
however, margins frequently are inaccurate and misleading indicators.
Productivity

Value

Utilization

Utilization is the ratio of the number of hours billed to the number of

possible billable hours
Profitability Tactics
Outsourcing Process
Taxonomy for Outsourcing Business Service
Research Paper

Management of service supply chains with

a service-oriented reference model:
the case of management consulting
Terima Kasih
paltisitorus@telkomuniversity.ac.id
08122125724
pmts_dori@yahoo.com