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Ch. 13 Service Supply Relationships

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實務問題

1. transaction business VS. relationship business

2. Supply Chain Management→ Service Industry

3. outsourcing: uncertainty

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Learning Objectives

1. supply chain management

2. bidirectional service supply relationship

3. sources of value in SSR

4. outsourcing services

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1. Supply chain management

(1) Total systems view of the entire supply chain. “Bullwhip effect”(2) Network of value-adding material- processing stages.(3) Uncertainty: supplier delivery performance,

manufacturing reliability, customer demand.(4) Buffered by inventory stocks.

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1. Supply Chain for Physical Goods

Suppliers

Product and Process Design

Manufacturing Distribution Retailing Consumer

DisposalRecycling/Remanufacturing

After-salesService

Material Transfer Information Transfer

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1. Customer-Supplier Duality in Service Supply Relationships (Hubs)

Material transfer Information transfer

Supplier

Service Design

Service

Provider Customer

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1. Strategy of postponement

(1) Partially completed product is held until a customer order is received.(2) Fast-food restaurants: assemble-to-order. VS make-to-order. (3) Dell computer: “service-like” goods producer.

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2. Single-Level Bidirectional Service Supply Relationship

Service

Category

Customer

-Supplier

>Input

Output>

Service

Provider

Minds Student >Mind

Knowledge>

Professor

Bodies Patient >Tooth

Filling>

Dentist

Belongings Investor >Money

Interest>

Bank

Information Client >Documents

1040>

Tax Preparer

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2. Two-Level Bidirectional Service Supply RelationshipService

Category

Customer

-Supplier

>Input

Output>

Service

Provider

>Input

Output>

Provider’s

Supplier

Minds Patient >Disturbed

Treated>

Therapist >Prescription

Drugs>

Pharmacy

Bodies Patient >Blood

Diagnosis>

Physician >Sample

Test Result>

Lab

Belongings

Driver >Car

Repaired>

Garage >Engine

Rebuilt>

Machine

Shop

Information

Home

Buyer

>Property

Loan>

Mortgage

Company

>Location

Clear Title>

Title

Search

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2. Managerial implications of BR

(1) Service supply relationships are hubs, not chain.(2) Service capacity is analogous to inventory.(3) Customer supplied inputs can vary in quality.

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3. Source of value in SSR(1) Bi-directional Optimization

(2) Managing Productive Capacity- Transfer: make knowledge available

(ex. web based FAQ database)- Replacement: substitute technology for

server (ex. digital blood pressure device)- Embellishment: enable self-service by

teaching (ex. change surgical dressing)

(3) Management of Perishability: mobile workers.

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4. Outsourcing Process

Need Identification

Problem Definition"Do-versus-Buy" AnalysisInvolve Interested PartiesSpecification Development

Information Search

ReferencesPersonal ContactRecommendationsTrade Directory

Vendor Selection

Experience

ReputationReferences

Cost

LocationSize

Performance Evaluation

Identify Evaluator Meet DeadlinesQuality of Work FlexibilityCommunication Dependability

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Outsourcing Services Benefits

• Allows the firm to focus on its core competence• Service is cheaper to outsource than perform in-house• Provides access to latest technology• Leverage benefits of supplier economy of scale

Risks • Loss of direct control of quality • Jeopardizes employee loyalty • Exposure to data security and customer privacy • Dependence on one supplier compromises future negotiation leverage • Additional coordination expense and delays • Atrophy of in-house capability to perform service

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4. Taxonomy for Purchasing Business Services

Importance of Service Low High

Property

Focus

Facility Support: -Laundry -Janitorial -Waste disposal

Equipment Support: -Repairs -Maintenance -Product testing

of

PeopleEmployee Support: -Food service -Plant security -Temporary personnel

Employee Development: -Training -Education -Medical care

Service Process

Facilitator: -Bookkeeping -Travel booking -Packaged software

Professional: -Advertising -Public relations -Legal

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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

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Focus on People Employee Support Service • Contact vendor’s clients for references • Specifications prepared with end user input • Evaluate performance on a periodic basis Employee Development Service • Experience with particular industry important • Involve high levels of management in vendor

identification and selection • Contact vendor clients for references • Use employees to evaluate vendor performance

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• Involve high level management in vendor identification and selection

Focus on Process

Facilitator Service

• Knowledge of alternate vendors important• Involve end user in vendor identification• References or third party evaluations useful• Have user write detailed specifications

Professional Service

• Reputation and experience very important• Performance evaluation by top management

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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?

Speculate on the effect that the Internet will have on the process of business-to-business purchase of services?

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Interactive Exercise

The class divides into small groups and members come up with examples of multilevel bidirectional service relationships (i.e, service supplier relationships with three or more levels). Be prepared to argue why such service relationships are so rare.