What is Service Management?
The aim of high performance Service Management is to optimize the service-intensive supply chains.
Service Management is integrated into Supply Chain Management as the joint between the actual sales and the customer.
Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties. This means:
- Inconsistent/uncertain demand
- Establishing advanced information flows
- Establishing advanced product flows
- Co-ordinating processes across numerous service locations
- Large numbers of parts
- Multiple supply chain levels
Among typical manufacturers, post-sale services (maintenance, repair and parts) comprise less than 20 percent of revenue. But among the most innovative companies in Service, those same activities often generate more than 50 percent of the profits.
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