Supply Chain Chapter 12

State Utility Service

A type of service directly involve things owned by the customer (e.g., car repair, dry cleaning, haircut, and healthcare).

End Product Service

A type of service offer tangible components along with the service component (e.g., restaurants; food along with the dining service)

Pure Service

A type of service offer very few or no tangible products to customers (e.g., consulting, storage facilities, training / education, etc.)

inventoried unique high decentralized

Differences between goods and services: Services cannot be _____________ (in most cases). Typically, services are produced and consumed simultaneously. Services are often ___________ to the customer (e.g., insurance policies, legal services, tax preparation, etc.) Services have _______ customer interaction Services are _________________. Due to the inability to inventory or transport most services, they must be located near to the customer base.

customers vary economic

Global services are increasing all over the world and managing them involves a number of issues: Identifying global ____________. Labor, facilities, and infrastructure support ______ by country Legal and political issues: -Laws may restrict foreign competitors. Domestic competitors and the _________ climate: -Managers must be aware of local competition and their environment.

tangibility involvement of the customer facility location

How does supply chain management in the service industry differ from supply chain management in manufacturing? The ______________ of the end product. Services are generally not tangible [i.e., you can't touch or hold them in your hands] The ________________________ in the service process. Customers are much more directly involved in the service industry The assessment of quality. Quality is assessed differently in the service industry The labor content. There is a much higher ratio of labor to materials in the service industry The ___________________ considerations. Services are largely provided very near where customers are located and heavily impacted by location decisions.

labor customized automating

Improving service productivity is challenging due to: High __________ content Individual ____________ services Difficulty of ____________ services Problem of assessing service quality