The service supply chain is the section of the supply chain committed to providing product service. It deals with the provision of parts, materials, personnel, and services required to provide swift and appropriate product service, such as maintenance and upkeep.
The logistics required to restore a product for repair, servicing, replacement, or recycling, known as reverse logistics, are also part of the service supply chain. Many manufacturers outsource this part of the service supply chain to third-party logistics providers (3PLs).
While some industry veterans from certified supply chain service in Malaysia may joke that supply chain is associated with chaos, it’s critical to understand that this type of informal, problem solving is not only inconvenient but also has real consequences for the business and supply chain operations. SCM ensures constant, repeatable, and efficient supply chain processes by providing supply chain processes as a service. SCSM eliminates the need for firefighting, keeps supply chain teams from becoming exhausted, and makes customers happier.
What is the difference between service supply chain and manufacturing supply chain?
Originally, the term supply chain alluded to the procurement, parts, and other goods required in the manufacturing process. Supply chain management (SCM) is now a broad series of activities for planning, controlling, and executing not only the flow of materials for manufacturing a product, but also the distribution of the product to wholesalers, retailers, and end customers. The objective of service supply chain, on the other hand, is to provide after-sales support and service for a product, such as routine maintenance and warranty repairs.
Often these enterprise resource planning (ERP) software suites include SCM. While it was focused primarily on the manufacturing supply chain, it has since expanded to also include the supply chains of service sectors, retail, and others. Few ERP and SCM vendors specialise in service supply chain management software, instead including it in their standard offerings. Specified service processes, such as field service management, have devoted software that connects to the service supply chain via SCM and ERP integration. Furthermore, many product-service steps, such as reverse logistics and parts management, are handled by service lifecycle management (SLM) processes and software.
The term service supply chain is also used to refer to a type of supply chain for service areas such as banking, healthcare, hospitality, and professional services. It can also refer to a wide range of service providers and supporting elements such as information, process, competency, and money management. According to some sources, the category is divided into merchandise service supply chains and service-only supply chains.
Service chain management
There are also related terms that have different meanings. For example, service chain management and service supply chain management have significant overlap, particularly in terms of the parts and materials required to provide efficient service. However, service chain management, in addition to the physical side, focuses on the “chain” of solutions themselves and the individuals who provide those services. It is similar to SCM in that it includes the stream of services to the clients rather than finished goods.