Professional Documents
Culture Documents
Supply 15
Supply 15
Learning Objectives
Contrast the supply chain for physical goods with the
customer-supplier duality of services.
Discuss the challenge of managing service supply
relationships.
Classify business services based on the focus of the
service and its importance to the outsourcing organization.
Discuss the managerial considerations to be addressed in
outsourcing services.
Discuss the challenges of delivering services in the field.
Prepare a delivery route using the Clarke-Wright
algorithm.
Supply Chain for Physical Goods
Suppliers
Recycling/Remanufacturing
Service Service
Provider Customer
Design
Performance Evaluation
Identify Evaluator Meet Deadlines
Quality of Work Flexibility
Communication Dependability
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 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
Facilitator Service
Professional Service
• Involve high level management in vendor
identification and selection
• Reputation and experience very important
• Performance evaluation by top management
Topics for Discussion
What are some possible disadvantages
associated with the product postponement
strategy?
Discuss the similarities and differences in the
product postponement strategy used by
Hewlett-Packard and Taco Bell?
Discuss the implication of service outsourcing
on employees, stockholders, customers, and
host country economy when a firm
outsources a call center overseas.
Interactive Exercise