Supply Chain Service

Supply Chain Services

How To Understand Supply Chain Services

Supply Chain Service is a service business model that can be used to help companies achieve a higher level of customer service at a lower operating cost, ultimately increasing their profitability.

Supply Chain Service, because of the high level of after-sales service can significantly improve customer satisfaction, thus retaining customers, generating more business, obtaining highly profitable service contracts, and increasing the profitability of the company. The service supply chain is growing rapidly and has become a powerful tool for many companies to gain and improve their competitive advantage. Like traditional supply chain management, performance management of service supply chain is an important tool to measure and improve the efficiency of the supply chain.

Supply Chain Services-Theoretical Research

1. The research on service supply chain has started since 2000, and the research is still in immature stage. American scholar Lisa M. Ellram published an article “Understanding and managing service supply chain” in 2004, which marked that service supply chain formally started to get attention. The research on the application of service supply chain industry started to be carried out in the future, and the more concentrated discussions are mainly in the industries of property service, tourism service and logistics service.

2. In the research of property service supply chain, scholar Chen Xiaofeng believes that supply chain management is mainly applied to manufacturing and retail industry, and hardly involves property service. On the basis of analyzing the characteristics of property services, he proposed the characteristics of property service supply chain and believed that property service supply chain is a chain structure with property service providers, property service providers and owners as the mainstay. He also proposes the objectives of the property service supply chain and the business operation strategies of property integrators. His research perspective has actually focused on the relationship among the various members of the property service supply chain, but his research is still at the conceptual level and has not been explored in depth.

3. In the study of tourism service supply chain, Yingzhi Zhang points out that the tourism service portfolio product is actually a service supply chain provided to tourists by a system of division of labor and collaboration. The concept of supply chain management corresponds to the characteristics of tourism service system.

4. In the study of logistics service supply chain, Tian Yu believes that the basic structure is the integrated logistics service provider’s supplier → integrated logistics service provider → manufacturing and retail enterprise model, in which the integrated logistics service provider’s supplier refers to the traditional functional logistics enterprises, such as transportation enterprises, warehousing enterprises, etc., which are often limited to a certain region because of the single and standard service function they provide and the business development. They are absorbed as suppliers by integrated logistics service providers in building national or even global service networks.

In addition, Chenglin Shen believes that logistics service supply chain is a new type of supply chain with integrated logistics service provider as the core enterprise, whose role is to provide a full range of logistics services for the logistics demand side. The most obvious feature of integrated logistics service provider is to select suitable functional logistics enterprises to serve the logistics demand side through the form of business subcontracting.

Yang Mingming proposes a port service-oriented supply chain. He believes that the port service-based supply chain is different from the typical manufacturing supply chain in that there is no manufacturing link in the service-based supply chain, and it is a core enterprise with the service-based enterprise as the leading supply chain. Port supply chain refers to the port as the core enterprise, which effectively combines various service providers and customers into one, and distributes the right quantity of goods to the right place at the right time to achieve the lowest system cost. The various types of service providers depend on the port but are independent of the port, they are service providers to the port and economically they have their own profit objectives.

Supply Chain Services-Future trends

Given that the definition and basic framework of service supply chain have not yet reached a clear conclusion, further clarification of the concept of service supply chain, structural model and its connotation, and laying the foundation for systematic research on the basic theory of service supply chain is an important trend of future research.

The research on product supply chain has been relatively mature, and the related basic theory of supply chain has been greatly developed. Since the service supply chain has very different characteristics from the product supply chain, how to combine the characteristics of the service supply chain itself and apply the relevant theories of the product supply chain to the service supply chain, and strengthen the research on the basic theory of service supply chain operation will become a trend. This trend includes the following points.

1. Excellent service supply chain will play an important role in service performance, and the design of service supply chain and partner selection as an important work in the early stage of service supply chain operation and management, which has both commonality and dissimilarity of product supply chain, will become one of the important trends of research.

2. Because of the intangible nature of service products, the research will further focus on the control of service agreements and service quality level in the service supply chain, especially the quality supervision and quality control of the service supply chain under asymmetric information conditions.

3. Due to the large influence of human subjective factors in service supply chain evaluation, the service supply chain performance evaluation index system and measurement will become one of the key research contents.

For example, the bullwhip effect of service capability has been actively carried out, but the research only focuses on some special industries, and there is no universal research yet.

Since the service supply chain involves more service industries, and the actual characteristics of different service industries are different. Therefore, two types of trends will be formed in the research. One type is to carry out common research on service supply chain of different industries and build a general model on this basis; the other type is to carry out systematic research on service supply chain with industry characteristics for different service industries, for example, logistics service industry, so as to better guide the practice of the industry.


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