Service Supply Chains

Abstract

The Economist defines services as “anything sold in the trade that cannot be dropped on your foot.” According to Levitt,¹ products can be seen as the physical embodiment of the services they deliver. For instance, a smartphone can be viewed as an object delivering a communication solution. In fact, as shown in Figure 7.1, a growing proportion of the active population in developed economies would describe their jobs as a service operation. Yet, with a few exceptions, this book has largely focused on supply chains that produce and deliver physical goods to final customers. The question that must be addressed is what portion of the concepts and ideas developed thus far also apply to service settings.