Understanding and managing the services supply chain - Issues facing the services supply chain
5 important questions on Understanding and managing the services supply chain - Issues facing the services supply chain
Name four issues facing the services supply chain.
- Many professional services agreements are executed without clear specifications.
- Service specifications are often difficult to develop.
- Significant opportunity exists for service providers to profit unfairly in the current system.
- Lack of recognition of a problem in services management.
What are the consequence from not having clear specifications in service agreements (SLA)?
Why are service specifications difficult to develop?
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What are two reasons value leakage in services happen?
- It is impossible to objectively determine whether a service provider is doing its job as agreed.
- The services purchasing system generally lacks proper control.
Several types of behaviour result in firms paying more for purchased services than they expect. Name these seven.
- Appropriate procurement leverage (demand payments from sub-suppliers, e.g. ordering fees)
- Hidden cost adders (not explicitly addressed by SLA)
- Cost of money (YT)
- Billing and calculation errors
- Substitution of lower-skilled staff or inputs
- Providing levels of service below commitment
- Bundling of services with others services or goods (unique packages; therefore, difficult to compare cost of individual elements)
The question on the page originate from the summary of the following study material:
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