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Chapter 9
Service Supply Relationships
Chapter 9
Service Supply Relationships
PAGE 144
PAGE 145
143
CHAPTER 9
SERVICE SUPPLY RELATIONSHIPS
TEACHING NOTE
The physical supply chain for goods is receiving considerable attention by operations managers because taking a total systems view of the entire process has allowed firms to realize efficiencies beyond the factory walls. We explore the concept of a customer-supplier duality that leads to a view that services are better understood as relationships instead of a chain. Sources of value in the service relationship include bi-directional optimization, management of productive capacity, and management of perishability. Social media such as Facebook and Twitter are recognized as elements in service strategy. Students will identify with the professional service firm material because many aspire to positions in accounting or consulting firms. The chapter concludes with a discussion of the issues associated with service outsourcing.
SUPPLEMENTARY MATERIALS
Case: Toyota: Service Chain Management (HBS: GS41-PDF-ENG)
In addition to its world-class supply and demand chain management practices, Toyota Motor Co. Ltd excels in managing its service chain. The service chain, which the company views as key to its long-term success, is responsible for providing products in the form of service parts for maintenance and repair, and services in the form of improving the value that a customer derives from a vehicle. Service chain management is based on establishing strong links with customers, both through the dealer channel and directly. (service chain, networks, CRM)
Case: Dell Computers (A): Field Service for Corporate Clients (HBS: 603067-PDF-ENG)
Explores the highly successful PC and low-end server manufacturers entry into the large-scale server market in the United States. A key difference of this new market is the intense service element required to support the larger hardware. Specifically, the industry standard is to hav
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