Exploring a Supply Network Model … For Services [PRO]

In a world where everything is becoming a service, including manufacturing itself and other core value chain processes, you’d hope that managing those services would be a core competency – even if many or most of those processes are increasingly outsourced. You would also hope that managing a portfolio of critical third-party service relationships with strategic advisory firms, BPO providers, third-party logistics firms, value-added distributors, managed service providers for temporary labor, and so on, would be coordinated just as rigorously as critical direct material suppliers in the supply chain. But, as you may have expected, it’s not. We find that while product supply chains are managed at Six Sigma levels, “services supply chains” for contingent labor (in the broadest sense) managed at about two sigma levels.

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