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SRO - Session 19

Customer-supplier duality is a key characteristic of service supply chains. Customers play a dual role as both the recipient of a service and as a supplier providing necessary inputs. This creates a bi-directional relationship between the service provider and customer. Managing human elements is also challenging as service relies on human capital which can vary more than manufacturing. Service capacity is analogous to inventory, with some excess held in reserve to accommodate random customer demand and expectations of immediate service.

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Nilisha Deshbhratar
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90 views7 pages

SRO - Session 19

Customer-supplier duality is a key characteristic of service supply chains. Customers play a dual role as both the recipient of a service and as a supplier providing necessary inputs. This creates a bi-directional relationship between the service provider and customer. Managing human elements is also challenging as service relies on human capital which can vary more than manufacturing. Service capacity is analogous to inventory, with some excess held in reserve to accommodate random customer demand and expectations of immediate service.

Uploaded by

Nilisha Deshbhratar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Specific Characteristics of Service Supply Chain

A) Customer-supplier duality
Service – an act or deed performed on customer’s mind, body,
belongings or information provided by service provider.
Customer also acts like a supplier to the service provider who gets the
service done.
Dual role of customer also being supplier is called “Customer-supplier”
duality. Service delivery

Service provider Customer


Inputs provided
by customer

Bi-directional relationship
Single level bi-directional relationship

Service

Service provider Inputs Customer

Type of Service Customer as supplier Customer as customer


Customer
Service provider supplying inputs receiving service

Air travel Airline Passenger Themselves and Transported passengers and


luggage luggage

Education Educational Students Minds Enlightened mind


institutions
Health care Body with Body without
Doctor
Treating a disease Patient disease disease
Two level bi-directional relationship
Service Service

Next level Service provider Customer


Customer’s Inputs
Service provider
input
Type of Supplier of Customer Customer Customer supplying inputs to
service customer interfacing the initial service provider
interfacing service who sends to another supplier
service provider
provider As supplier As customer

Healthcare Laboratory Doctor Patient Blood/test Test result and


request diagnosis
B) Pure services provide packaged service
Airlines

Hotels

Transportation Tour Travel


Customer
providers operator agent
Sight seeing
operators

Set of services A Typical tourism and hospitality supply chain


C) From a customer’s perspective, many service supply relationships
are Hubs not Chains Audio/Visual
inputs
Cases/Readings

Service
46 students
Operations

Problem solving
Textbook
D) Service capacity is analogous to inventory
 In a manufacturing supply chain, inventory is used as a buffers to
deal with variations in customer demand.
 Customers arrivals may be random with expectation of immediate
service.
 Services cannot be inventoried; some excess capacity must be held
in reserve to accommodate expectation.
E.g - Reservations to schedule customer arrival to match with
capacity.
Challenges in managing service supply chain
Human element in service
Manufacturing Service
Human capital is typically the most
contributory asset.
 People work differently even if
standardization prevail in the
organization
 Varying outcomes of service employee,
managing and controlling performance
in service supply chain is challenging

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