1. Service Supply Relationships

2. 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.

3. Supply Chain for Physical Goods

4. Customer-Supplier Duality in Service Supply Relationships (Hubs)

5. Single-Level Bidirectional Service Supply Relationship
Category
Customer
-Supplier
>Input
Output>
Provider
Minds
Student
>Mind
Knowledge>
Professor
Bodies
Patient
>Tooth
Filling>
Dentist
Belongings
Investor
>Money
Interest>
Bank
Information
Client
>Documents
1040>
Tax Preparer

6. Two-Level Bidirectional Service Supply Relationship
Category
Customer
-Supplier
>Input
Output>
Provider
Provider’s
Supplier
Minds
Patient
>Disturbed
Treated>
Therapist
>Prescription
Drugs>
Pharmacy
Bodies
>Blood
Diagnosis>
Physician
>Sample
Test Result>
Lab
Belongings
Driver
>Car
Repaired>
Garage
>Engine
Rebuilt>
Machine
Shop
Information
Home
Buyer
>Property
Loan>
Mortgage
Company
>Location
Clear Title>
Title
Search

7. 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

8. Impact of Service Supply Management

9. Impact of Service Chain Management

10. 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 firm’s core business)

11. Purchasing Process

12. Taxonomy for Purchasing Business Services

13. Purchasing Considerations

14. Purchasing Considerations

15. Purchasing Considerations

16. 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?