Service Supply Chain Strategies to Increase Corporate Profitability [Archive.org URL]

“The last decade has witnessed a substantial shift in emphasis on the part of many OEM manufacturers, from a focus on the products they produce to a concentration on their customers and the value that their customers derive from ownership and use of these products after the initial product sale.

With an increasing awareness of the strategic value of service, companies are beginning to focus on their service supply chains, which can be defined as the network of resources that includes the appropriate service parts, customer engineers, and infrastructure for material movement and storage, repair, transportation, information systems, and communication.

In this paper, we describe the unique challenges of the service supply chain, and a framework for understanding the service management decision hierarchy. Most importantly, we highlight the dramatic value proposition available to companies that deploy advanced service strategies and decision-support tools to address these challenges. Brief case studies from leading service organizations Cisco and KLA-Tencor describe examples of successful deployments of service supply chain strategies that leverage this approach.”

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