Understanding and managing the services supply chain - Translating to a services supply chain model

8 important questions on Understanding and managing the services supply chain - Translating to a services supply chain model

Which seven processes need to be managed in a service supply chain?

  • Information flow
  • Capacity management
  • Demand management
  • Customer relationship management
  • Supplier relationship management
  • Service delivery management
  • Cash flow management

Information flow is the foundation of any effective supply chain and reduces the uncertainty that can make all types of supply chains very risky and reactive. Information flow is critical in:

  • Identifying demand
  • Sharing information
  • Establishing expectations (service level agreement/statement of work)
  • Clearly defining the scope of the work
  • The skills required of service providers
  • Feedback on the performance
  • Monitoring on going performance

Based on what can service providers differentiate itself in terms of capacity and skill management?

Services can differentiate itself by making good investments in:
  • Its organisation
  • Processes
  • Assets
  • Staff (especially the availability and quality of staff or the lack thereof)
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Where does demand management focus on?

It focuses on how to meet, and in many cases how to generate, customer demand.

Why is customer relationship management (CRM) important in terms of services?

It develops a good understanding of what the customer needs and focuses efforts on meeting those needs.

What should service contracts include in order to reduce uncertainty in supplier relationship management?

A service level agreements (SLAs) based on the statement of work, which if done properly, reduce uncertainty in supplier performance outcomes and reduce the likelihood of any severe contract overruns.

How to reduce the uncertainty in supplier relationship management?

Once the needs of the customer are identified, these need to be communicated to the supplier.

Who should determine the timing and amount of payment made in services?

The party responsible for service delivery management.

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