The unique challenges of managing services supply chain Essay

The unique ch in allenges of managing services supply chain - demonstrate Exampletween a manufacturing and service sector supply chain is that manufacturing operations require lots of inventory, patch in service operations there is none or little miscellaneous inventory such(prenominal) as office supplies. There is a difference in terms of how the labor is utilized in each supply chain. In manufacturing labor is used for procuring, transporting, and handling physical material, while almost all service industries labor is used to manipulate information and develop relationships. SCM includes supplier relationships, supplier network, and supplier collaborationism (Sengupta, Heiser, Cook). Logistics and transportation costs in the supply chain of manufacturing companies are high, while service souseds do not incur in these types of costs. The inventory category in manufacturing firms is subdivided into finished goods, work in process, and raw materials. no(prenominal) of those inve ntory accounts categories exist in the service industry. The service supply chain has more human engagement which makes it harder to standardize solutions to problems since they are resolve on case by case basis. In manufacturing lines processes are standardized. abbreviate for instance the service that is provided by a barber. Each individual hair cut service is various because each human on earth has a different set of hair.In order to break the supply chain of a service company the managers have to divide their strategy into three levels strategic, tactical, and running(a) level. The service supply chain is more visible at the operational level. A fast regimen restaurant can improve its operational level offering by always having three cashiers alternatively of one taking orders from the customers. Such a strategy would reduce the waiting time of the customers by eliminating the capacious lines. At the tactical level a service organization such as the global managing consu lting firm Accenture can begin recruiting its new batch rookie college graduates a year become the students graduate. Giving these