Discuss the major differences between supply chains for services
and manufacturing. Which supply chain is easier to coordinate
effectively? Explain and provide examples.
Please be very detailed :)
Differences:
a). Inputs:
In a manufacturing firm inputs required are more of men, material, equipment and machinery. All these involve high amounts of capital investments for organisations operating in manufacturing industry.
Compared with Service firm, organisation with automation and technology, there is not much machinery required, which involves low capital investments.
b). Logistics
In service servers and software are upgraded from time to time, while in manufacturing the transportation of goods is essential and shipping rates are present.
c). Finished product:
In service industry the finished product is intangible while in manufacturing industry it is in the form a product that is tangible.
d). Optimisation
In service optimisation is seen in the form of information flow, while in manufacturing it is seen in the form of speed of delivery of product.
Service supply chain is easier because software can be upgraded within the organisation, while in terms of manufacturing involving man power resources cannot be transferred on time.
For example: In service technology can be upgraded and training of employees can be made prior to upgradation or simultaneously which consumes less time and effort.
In manufacturing to produce a product, resources must be procured on time, transported on time and manufactured on time with right measurements all these are highly complex in nature.
Discuss the major differences between supply chains for services and manufacturing. Which supply chain is easier...
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