The Product Analogy Of A Supply Chain Case Study

542 Words2 Pages
bulb-icon

Recommended: Final exam supply chain management quizlet

The reason why the products analogy of a supply chain is not appropriate for services
A supply chain consists of all operations involved in a company from production, distribution, to final delivery of an output to consumers. However, the supply chain of goods differs from that of services in many perspectives. Therefore, the commodity analogy is inappropriate for services industry.
Firstly, the service supply chain requires low capital investment in equipment and machinery. In comparison, both the manufacturing and the service industries need labor inputs to complete the production processes that are necessary for satisfaction of end consumer utilities (Maxwell 2013). In addition, the businesses in both sectors require various types of inputs from their suppliers. Moreover, capital investments in material are required in both businesses to enable employee render their services. However, most of the labor costs in manufacturing firms are involved in transporting, procuring, and physical material manipulation. On the other hand, labor costs in the service industry are a...

Show More
Related

  • NHS Supply Chain Case Study

    735 Words  | 2 Pages

    The purpose of supply chain is to improve overall performance of a business. Whether organisation is functioning national or worldwide the competition is always increasing and offering products at the lowest possible cost with the best possible customer service is a way to ensure market share.

    Read More

  • What is a Commodity Chain

    1463 Words  | 3 Pages

    A commodity chain is the process in which resources needed are gathered, and transformed into products for consumers. With the boom of transportation, this process is becoming less and less costly, as we reach out to where the resources are the cheapest, and where the labor to create the products is lowest. Mximizing, and increasing a brand's profits considerably

    Read More

  • Supply Chain Management Of Woolworths

    954 Words  | 2 Pages

    Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.

    Read More

  • Super U Supply Chain Management

    551 Words  | 2 Pages

    Which activities are managed is significant for a company's success. Moreover, the supply chain management is crucial within a firm's processes since it incorporates activities in which intermediate goods and final products are given to consumers through a distribution system. It is important to analyse it and take into consideration that this subject matter has a great impact within business procedures.

    Read More

  • Pampers Case Study

    925 Words  | 2 Pages

    Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,

    Read More

  • Case Study Of Operations And Process Management

    1207 Words  | 3 Pages

    For the process perspective at the level of the supply network, it can be complex due to the large numbers of suppliers and customers. The boundaries of the operation’s supply chain can be very wide ranging from procurement of the raw materials to the disposal of products. It is also always changing as suppliers may change from time to time while in some operations, some new customers may be won over but may result in the loss of some existing customers.

    Read More

  • An Overview of Business Strategies

    2251 Words  | 5 Pages

    The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...

    Read More

  • Unilever Supply Chain Case Study

    1134 Words  | 3 Pages

    "A lot of companies think of supply chain as a cost centre. They don’t always see it as helping to funnel top-line growth." Supply chain touches practically every part of operations inside an organization: from determining client interest, to sourcing crude materials, to assembling, distribution and returns Supply chain is to adjust supply and request, for example the demand for goods and services. You need to get the right quantity and quality of goods and services

    Read More

  • Role Of Supply Chain In Tesco

    1415 Words  | 3 Pages

    According to the Oxford Advanced Learner’s Dictionary, supply chain is the sequence of processes involved in the production and distribution of a commodity. From an industrial engineering point of view, the management of the supply chain is really important in order to give the customer the product they want, when they want it, as often they want it at a reasonable price but at the same time without sacrificing the profit of the company. A supply chain manager needs to make sure that all of these happen flawlessly.

    Read More

  • The Importance of Knowing How to Provide a Service

    857 Words  | 2 Pages

    Service is any act, performance or experience that one party can offer to another and that is essentially intangible, and does not result in ownership of anything. Its production may or may not be tie to a physical product (lovelock,Patterson & Wirtz, 2011). Services are processes that provide time, place, form, problem solving or experiential value to receiver (lovelock,Patterson et. Al, 2011). No matter how good a service is, it will always vary not only in terms of variability but also in terms of consumer’s expectation. The better the quality of a firm and its product, the more expectation will be there for its service.

    Read More

  • The Role and the Importance of Supply Chain Management

    1624 Words  | 4 Pages

    ‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...

    Read More

  • Supply Chain Management Essay

    886 Words  | 2 Pages

    Supply chain seen as a whole end to end process. It is began level of effectiveness of material flow until it become a customer product. Competition did occur during all level of production process until it becomes more priority compared to efficiency of production process.

    Read More

  • Advantages And Disadvantages Of Supply Chain Management

    2485 Words  | 5 Pages

    A supply chain is a network of business bodies where it engages from manufacturing products and services to the delivering of products and services to the final consumer for instance the process of designing new products or services, obtaining raw materials, converting the raw materials into semi-finished or finished goods, and delivering the final product or service to the end user is known as supply chain.

    Read More

  • Product Life Cycle Management Case Study

    705 Words  | 2 Pages

    The main dissimilarities between Products and services are products are tangible, but services intangible, frequently depends on receiver, and deal direct with customer,

    Read More

  • The Importance Of Operations Management

    697 Words  | 2 Pages

    ...bination of product and service is active for a company’s success, because it effects how a customer sees the product. Operations managers must for that reason direct consideration to both the product and the services that go with the product. In the manufacture of tangible goods, such as cars, cleanser, or alcoholic drink, customer contact is limited to the retail end, after actual manufacturing has been completed. In the project planning and regulator of the associated manufacturing process, the first choice of consumers are important, but the customer’s actual attendance is not. The main difference between service and manufacturing systems is that services are intangible productions that are consumed in the process of their production. The knowledge and process for supplying the service can differ considerably from one industry in the service sector to another.

    Read More

More about The Product Analogy Of A Supply Chain Case Study

Open Document