Supply chains and the logistics associated with the same are something that all companies have to deal with at some level. This is true, of course, of manufacturing and product-based businesses. However, it is also true when it comes to businesses that supply services. Even if there is a marked difference between the two business types when it comes to supply chains, it is important to note that both supply chain frameworks and types must be taken seriously. The important aspects that exist within both frameworks would include the overall design of the applicable supply chain, how decisions are made, the role of the consumer and the importance of quality. While there are definite and distinct differences with supply chains from one business type to another, knowing how they work and the impact they have on the business is of the utmost importance.
Analysis
The first thing that shall be looked at when it comes to supply chains is how they are designed. Of course, the design of the supply chain will vary based on whether the business in question does services, products or a combination of the two. There are indeed businesses that do both and they thus must have a hybrid design that has the proper supplies and materials needed for both parts of the business. When it comes to products, the two main examples of this would be manufacturing and resale. In the former, products are made and then shipped out to be sold. With resale, the products are typically already completed by another party, are purchased by the business in question and then are sold. An example of the former would be Nike. An example of the latter would be stores that sell Nike goods off of the shelf. Since a particular example of each type of major service was asked for as part of this report, the author shall focus on resellers. Example of resellers would be Wal-Mart, Target and smaller chains like Foot Locker and the like. There is a modicum of those stores that has to focus on appearances and so forth. This is where things like fixtures, wall hangings and so forth come in. These supplies and materials are meant to showcase what is being sold, hold what is being sold so the customer can select it or otherwise beautify the store so that the people shopping there are not taken aback by what they see. The inventory, however, and the management thereof is where resellers have to execute. Rather than just order what money allows and get the highest amount of stock possible, there instead needs to be a balance between having enough and not having too much. There are also seasonal considerations such as not having a glut of football gear after football season is underway or over or having too much skiing gear when the peak skiing season is over. Either one of those (among others) will lead to those items taking up space in the storage areas until the next year and/or they will have to be sold at a steep discount, often at a loss. A concept that is used in the stores and the distribution centers is just in time, or JIT. This is the idea that goods and materials will get where they need to go on time, but not too early (Salam, Panahifar & Byrne, 2016).
The supply chain of a service provider, on the other hand, is much more devoid of the space considerations. However, to suggest that no supply chain considerations are at issue would be folly. Indeed, even service providers have to ensure that they keep their office and work areas nice and neat. They do indeed need supplies such as paper, toner, folders and other things that will be used for or given to the customer. For example, a tax provider like H&R block would be an example of a service provider. They do taxes for people in the United States. Obviously, they would need the paper, toner and other things that go into delivering the service to the client. Providing a service is all about efficiency as well, although the manifestation is a bit different with service providers than it is for resellers or manufacturers (Liu, Xie, Liu & Liu, 2015).
As far as how decisions are made, both resellers and service providers have concerns when it comes to that. However, they are necessarily going to be different. One area where they are the same is that appearances and service quality matter a lot. When it comes to services in particular, however, the service quality matters a lot more because it is the entirety of what is being offered. Indeed, if a man buys a pair of Nikes and the service is sub-par, they could take solace in the fact that they got the new pair of Michael Jordan tennis shoes that they were coveting. It is true that the man could choose to shop elsewhere at a future point. However, the product he is able to procure (or not procure) is just as important (if not more so) than the quality of the service provided. When it comes to service providers in particular, the customer service and the intangible tasks that are being completed are the end-all, be-all of the product. Thus, the person receiving bad service is much more likely to depart and find a different service provider if they are not getting the service that they want (Dahan et al, 2016).
How decisions are made or not made is also important to consider when it comes to both frameworks. However, there are obviously going to be differences. When it comes to selling shoes, not a lot of talent is needed to do that in most cases. Of course, special orders and things like that may take some special care. However, shoes are often sold with little to no help from the person that is minding the register or the sales floor. However, the only reason that becomes possible is because the store is stocked well and people are able to find what they want. Obviously, the people minding the store can and should help if and when it is needed. However, the inventory management mentioned above and the decisions that go into that are going to feed what happens with just about every task completed as part of the daily grind. As such, preparation is a huge part of the battle when it comes to how well sales are. As such, the decisions made are based on getting the sales floor filled with as many saleable products as is possible so as to maximize what the store makes in terms of money. That means having the football gear in stock just before football season. That means having ski gear present when the ski season is about to start. However, there are other little touches that have to be done as well and the decisions have to be made correctly when it comes to that as well. The people on the sales floor need to know where the products are, how to do special orders, how to make sure that there is receipt tape in the register and so forth (Selvalakshmi & Ravichandran, 2015).
As far as how decisions are made with service providers, the calculus is obviously going to be different. This is necessarily true because the level and quality of service and the people providing the same is such a huge part of what is being done. H&R Block employees, for example, need to know what forms the client needs to bring in, how to process them, the rules and procedures that are to be followed and so on. Beyond that, the people making those policies and procedures need to be on point as well and ensure that everything being done maximizes customer satisfaction and leads to the job being done correctly and legally. Indeed, if a tax return being completed by H&R Block leads to a negative IRS action like an impound or a tax audit, that is going to cause a bad day for the client. As such, decisions are (and should be) made based on maximizing revenue, maximizing service quality and maximizing accuracy. Since the service is the product, it matters greatly who is providing the service. Thus, who is hired, who is not and why matters greatly as well and the decisions made should reflect that (Halperin & Lai, 2015).
The role of the consumer is crystal clear when it comes to service providers. However, the relationship is a little more nebulous and complex when it comes to resellers. Indeed, the stores that sell the Nike shoes (excluding Nike themselves if they are operating their own store) are the middlemen in the situation. Even so, this does not mean that the store can or should just blame Nike when something goes wrong. Indeed, if a shoe is defect, the reselling store will often accept returns and exchange out a new pair of shoes or a refund to the customer. (Bernon, Cullen & Gorst, 2016). When it comes to consumers and the service realm, the role of the consumer is much more direct and there is no demarcation between the role of the consumer and the role of the service provider. There is supposed to be a symbiotic relationship between the two whereby the consumer pays for a service and receives that service in kind (Marbach, Lages & Nunan, 2016). With both services and resellers/retailers, the role of the consumer is to basically keep the company honest when it comes to what they are doing or providing. The consumer expects the service or product to match up with what is advertised and promised. If there is a deficit, the retailer or service provider is expected to remedy the wrong. (Karaosmanoglu, Atigigne & Isiksal, 2016; Chakrabarty, Brown & Widing, 2013).
The final dimension to be covered is quality. Quality is defined differently by different people. This is true when it comes to products and this is true when it comes to services. Regardless of the type of product or service, quality is in the eye of the beholder and a related detail is what the priorities are for a given person. Some people focus on cost while others focus on quality or utility. This is what leads to the disparate and different decisions that are made by people when they buy products or services. There are differing outcomes and concepts that abound when it comes to quality. Even so, it is important to note that quality is generally the same or similar across the board. For a reseller, that means clean stores, plenty of stock on hand to cover demand and staff present that are least competent and able to complete basic tasks. With service providers, it is about having people that know the service, know how to provide it and how to interact with the consumers while doing all of the above (Dalaeen, 2016).
Conclusion
As is clear from this report, the supply chain is important irrespective of the type of business in question. Indeed, the only differences between the two major types of businesses, those being service providers and product sellers/makers, are that the manifestation of the supply chain is different. Regardless of the business type, it is important that the needed frameworks, supplies and materials are in place so that service is as high-quality and efficient as possible. If there is a breakdown in either of those main dimensions, the customer will tend to notice and react as such.
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