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Service Supply
Relationships
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 Our Team

Siti Khusnul Khotimah Nadhiratul Maghvirah

202010160311175 202010160311635
 Supply Chain
Management
Service Supply
Relationship
Managing Service
Table Of Relationships

Contents Professional
Service Firms
Outsourching Service
Supply Chain Service Supply Managing Service Professional
Relationships Outsourcing Services
Management Relationship Service Firms

Supply Chain
Management
The supply chain management challenge is to meet
customer and fast delivery requirements with
production and inventory costs.
Supply chain modeling allows managers to develop
which options will increase customer satisfaction the
most at a reasonable cost.
The supply chain is modeled as a network that captures
the relationship between asset costs (inventory and
capital equipment) and customer service time
characteristics (responsiveness and delivery in
customer deliveries).
Supply Chain Service Supply Managing Service Professional
Relationships Outsourcing Services
Management Relationship Service Firms

Network
Model
Supply Supply Chain for Physical
Chain Goods

Managemen Managing
Uncertainty
t
 Supply Chain Service Supply Managing Service Professional
Relationships Outsourcing Services
Management Relationship Service Firms

Customer-Supplier Duality
The nature of the service creates a customer-supplier duality that
results in a service supply relationship rather than the supply chain
found in manufactured goods which describes a physical object that is
passed from one entity to another.

Service Supply Relationships Are Hubs, Not

Service Supply
The supply chain can be extended to include suppliers to service
Chains
providers. The service provider relationship is more like a hub than a
chain as the service provider acts as an agent for the customer when
dealing with outside suppliers

Relationship Analog Service Capacity with

In the supply chain, inventories are used to buffer variations in final
Inventory
customer demand and enable full utilization of productive capacity. For
services, customer feedback is generally a random occurrence with the
expectation that it will be processed soon.

Customer Provided Feedback May Vary in

Customer feedback can be incomplete, unprepared, or have unrealistic
Quality
expectations. The lack of consistency in the quality of input that
customers provide is a challenge for service providers to deliver on
promises when input is questioned
Supply Chain Service Supply Managing Service Professional
Management Relationships Outsourcing Services
Relationship Service Firms

Managing Service Tw o - w a y o p t i m i z a t i o n i m p l i e s t h e p o s s i b i l i t y o f d o i n g w h a t ' s

Relationships
Tw o - w a y O p t i m i z a t i o n best from the customer's perspective while doing what's best
f o r t h e s e r v i c e c o m p a n y.

Capacity A key consideration of productive capacity for field workers is

the amount of time spent between jobs, which is correlated with the
distance between jobs. As value is created primarily while field workers
Productive are at customer sites, time spent traveling between customer sites loses
p r o d u c t i v e c a p a c i t y, c r e a t i n g o p p o r t u n i t i e s t o g r e a t l y i n c r e a s e t h e
productive capacity of the workforce with better management of service
relationships resulting in more cumulative time for workers to work. with
customers

Perishability management is an approach used in service chain

management to minimize the negative impact of idle time on the
Perishability productive capacity of a distributed service workforce. The
productive capacity of a service worker is limited to the time he or
she is at the customer site with the right tools and skills and
knowledge of customer requirements and preferences
Supply Chain Service Supply Managing Service Professional
Management Relationships Outsourcing Services
Relationship Service Firms

Professional Service Firms

Professional Service Attributes

The term professional service describes the services provided by knowledge

workers and has four distinguishing features. First, the job involves a high
degree of specialization and adjustment. Such highly specialized and customized
work creates a different management problem than occurs in the standard mass
m a r k e t a p p r o a c h o f o t h e r s e r v i c e s . M o s t i m p o r t a n t l y, m a n a g i n g p r o f e s s i o n a l
services requires the ability to manage activities and information without the
proven routines common in other businesses. Second, the frequency and
importance of face-to-face interactions with customers, often referred to as
clients, requires special attention.
Supply Chain Service Supply Managing Service Professional
Management Relationships Outsourcing Services
Relationship Service Firms

Professional Service Firms

Operational Characteristics
Professional services firms are often organized as
partnerships, not corporations. Partners have equity in the
company and, as a group, represent regulatory bodies.

The economic success of a partnership is measured by profit

per partner, which is driven by three factors: margin,
productivity and leverage as shown in the relationship below:

Margin Productivity
Supply Chain Service Supply Managing Service
Management Relationships Professional Service Firms Outsourcing Services
Relationship

Outsourcing Services
Benefits and Risks of Outsourcing Services
Allows the company to focus on its core competencies.

Provides access to the latest technology without investment.

Ta k e a d v a n t a g e o f s u p p l i e r s w h o h a v e e c o n o m i e s o f s c a l e .

O u t s o u r c i n g s h o u l d b e d o n e w i t h c a r e d u e t o t h eC f o l l o w i n g
considerations:
Loss of direct control over qualit.
Endangering employee loyalty due to fear of losing their jobs.
Exposure to customer data security and privacy concerns.
Reliance on one supplier compromises the influence of future
negotiations.
Additional costs of coordination and delays. Atrophy in-house
capabilities to outsource services.
Supply Chain Service Supply Managing Service
Management Relationships Professional Service Firms Outsourcing Services
Relationship

Outsourcing Services
Business Service Classification

Business services are often classified according to their level of

existence. The degree of tangibles describes the extent to which a
s e r v i c e h a s a p h y s i c a l l y m e a s u r a b l e o u t p u t p r o p e r t y. H o w e v e r, i n
general, the form of services will decrease as the focus of services shifts
from property to people to processes. The second dimension which
represents the criticality or importance of the service for the buying
company must be considered in the purchasing decision.
The importance of the service is considered high or low depending
on the relationship of the service to the company's core business
activities. Services that are critical to the core business will attract
high-level management involvement in purchasing decisions, because
conformity to corporate objectives is critical and involves substantial
risk exposure in the event of failure.
Supply Chain Service Supply Managing Service
Management Relationships Professional Service Firms Outsourcing Services
Relationship

Outsourcing Services
Managerial Considerations with Service Outsourcing

• Facility Support Services (Property/Low Important)

• Equipment Support Services (Property/High Interest)

• Employee Support Services (People/Low Important)

• Employee Development (People/High Interest)

• Facilitator Service (Process/Low Important)

• Professional Service (Process/High Interest)

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