A supply chain management framework for services

Abstract

AbstractWhile services represent the largest sector of the global economy, 86.8% in the United States, most supply chain management (SCM) research is focused on product flows. Executives in manufacturing firms have benefited from frameworks created to implement SCM processes, but this is not the case for their counterparts in service companies. The two most cited SCM frameworks for services have methodological and conceptual deficiencies. Drawing upon the service‐dominant logic of marketing and using an empirical research approach, we developed supply chain structure maps for nine service firms. Our findings indicate that the supply chain structure maps of service companies are comparable to those in the product‐based literature, which supports the service‐dominant logic. Then, we identified the six key processes that constitute a framework to manage service supply chains. The customer relationship management and the supplier relationship management processes form the critical links in the supply chain, and the other four processes are coordinated through this linkage. The SCM framework for services provides direction for executives in service firms who need to increase cross‐functional integration within their firms and with other members of the supply chain. For academics, 12 avenues for future research are identified.