Service Supply Relationships

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Service Supply Relationships
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Learning Objectives

• Discuss the concept of customer-supplier duality.
  
• Discuss the challenge of managing a bidirectional
  service supply relationship.
• Classify the purchase of a business service.
• Discuss the implications of purchasing business
  services.

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Supply Chain for Physical Goods
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Customer-Supplier Duality in Service Supply
Relationships (Hubs)
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Single-Level Bidirectional Service Supply
Relationship
Service Category Customer -Supplier gtInput Outputgt Service Provider
Minds Student gtMind Knowledgegt Professor
Bodies Patient gtTooth Fillinggt Dentist
Belongings Investor gtMoney Interestgt Bank
Information Client gtDocuments 1040gt Tax Preparer
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Two-Level Bidirectional Service Supply
Relationship
Service Category Customer -Supplier gtInput Outputgt Service Provider gtInput Outputgt Providers Supplier
Minds Patient gtDisturbed Treatedgt Therapist gtPrescription Drugsgt Pharmacy
Bodies Patient gtBlood Diagnosisgt Physician gtSample Test Resultgt Lab
Belongings Driver gtCar Repairedgt Garage gtEngine Rebuiltgt Machine Shop
Information Home Buyer gtProperty Loangt Mortgage Company gtLocation Clear Titlegt Title Search
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Managing Service Supply Relationships

• Bi-directional Optimization
• Managing Productive Capacity- Transfer make
  knowledge available (e.g. web based FAQ
  database)- Replacement substitute technology
  for server (e.g. digital blood pressure device)-
  Embellishment enable self-service by teaching
  (e.g. change surgical dressing)
• Management of Perishability

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Impact of Service Supply Management
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Impact of Service Chain Management
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Purchasing Business Services

• The Business Service Purchasing Process
  intangible, many personnel affected, often
  customized, end user involvement, and complex.
• Classification of Business Services - Focus of
  Service (property, people, process) with
  consideration for tangibility - Importance of
  Service (in relation to firms core business)

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Purchasing Process
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Taxonomy for Purchasing Business Services
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Purchasing Considerations
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Purchasing Considerations
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Purchasing Considerations
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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?