Supply Chain Management in Service

Supply Chain Management

The supply chain- includes every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. Supply-chain management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels and delivery to the customer.

The Five Rights of SCM

Right Items, needed for consumption or production, Right Place Right Time Right Condition Right Cost,

Customer service phases

It is mainly divided in three phases.
1. Pre transaction phase. 2. Transaction phase. 3. Post transaction phase.

1. Pre transaction phase : Important elements of pre transaction phases are : Customer service policy. Service organization. Structuring the service. Customer education System design.

2. Transaction phase :
During this phase routine activities are performed. Steps are, Order fulfillment reliability Delivery consistency Order convenience Order postponement Product substitute

Post transaction stage This phase is important since it is related to customer satisfaction and building up of a long term relationship with the customer. Order status information Customer complaints Product installation & commissioning Customer education and training

Competition
Today the real competition is not company against company but rather supply chain against supply chain.
Throughout the history ; wars have been won and lost through logistics strengths and capabilities or the lack of them.

CUSTOMER SERVICE
Good customer service supports customer satisfaction. Customer service is the output of the logistics system. The key trade off of customer service: cost of lost sales Dissatisfied customer tells to average of nine others

Need of SCM in bank :

Global deployment Customer stickiness Sale value added services Tried and tested working solution Easily deployed

Supply chain stratergy Planning Supply chain operations Supply Chain Managem ent

logistic

Enterprise application

Product lifecycle managt

procurem ent

Limitation of SCM
Resistance with in the company High initial cost Not suitable for small firms

Benefit for Banks

Reduces operational costs Increases working capital Improves customer service Increases supplier loyalty Greater competitiveness

Benefit for Customers

Complete on-line order management Access to faster cash Flexible supplier financing Greater visibility of future cash flows Reduced Day Sales Outstanding Time saving Cost savings

Thank you for Attention