Conceptualizing and managing service supply chains

Abstract

The supply chain management (SCM) literature is dominated by studies in industrial markets and studies that deal with the supply chains of manufactured goods. This paper develops a framework for conceptualizing and managing the supply chains of services. The few studies that deal with services' supply chains either focus on a particular business service sector or they adopt an unvaried approach to the management of different service supply chains. The paper draws insights from the existing frameworks for SCM and takes into account the peculiar characteristics for the production and delivery of services across several service industries. Based on the analysis of several processes, areas of concern for supply chain managers are identified, and a research agenda for services SCM phenomena is proposed.

Keywords:

• service industries
• supply chain management
• conceptual framework
• research agenda

Notes

The service economy refers to the service sector, in addition to service activities performed in the extractive and manufacturing sectors. In the UK, the service economy accounts for 75% of the GDP, around 55% of the total employment (World Bank, 2009). Nearly 30% of the expenses for the manufacturing of goods involve service procurement as well (report of European Commission Enterprise DG, 2004).