A multi-variable service supply management portfolio model for Telecom industry

Abstract

Supply operations require some kind of classification according to the features of items. Based on the literature review and expert interview, a multi-variable service supply management portfolio model was developed to classify the procurable service items in the Telecom industry in a more realistic way with better precision. First, a multi-level relational reflective model was built based on four dimensions using the fuzzy Delphi method and the model was validated by factor analysis. Then, 50 service items were placed in 16 clusters of the portfolio model. For each category of services in the model, the pertinent supplier relationship management practices were proposed using the literature review accompanied by a focus group. The presented model contributed to the development of previous theoretical trends in supply management portfolio models by introducing a new dimension, called “pace of innovation in technology”, to those extracted from the literature review, such as “strategic importance of the items”, “supply risk”, and “extent of buyer captivity”. Despite the classical models targeting tangible goods and products, our model was customized for the service industry context and can be considered a starting point towards service supply market segmentation procedures according to the attributes of each service item category.