Service Supply Relationships and SCM – Chapter 9 Vocabulary

A comprehensive set of vocabulary flashcards covering major terms and concepts from Chapter 9 on service supply relationships, supply-chain management, professional services, and outsourcing.

Service Supply Chain Management

Coordinating activities and relationships in services, emphasizing customer–supplier duality rather than a linear chain.

Total Systems View

An approach that looks at the entire value chain from product design to after-sale service to optimize performance.

Information Technology (IT) Enabler

Technology that allows the coordination of interrelated supply-chain activities among independent firms.

Customer–Supplier Duality

Concept that customers in services also act as suppliers of inputs (e.g., information, belongings, bodies).

Network Model

A supply-chain representation of interconnected value-adding stages linked by material and information flows.

Material Processing Stage

A point in the network where inputs are transformed, creating inventory that moves downstream.

Product-Life-Cycle Management

Managing a product from design through end-of-life, including recycling or remanufacturing.

Information Transfer

Upstream flow of demand, design, and service data used to coordinate supply-chain activities.

Bullwhip Effect

Amplification of small retail demand changes as orders move upstream to distributors and manufacturers.

Asset Costs

Expenses tied up in inventory and capital equipment within the supply network.

Time Domain Customer Service

Performance measures such as delivery responsiveness and reliability.

Supply Chain Modeling

Using analytical tools to balance customer service with inventory and manufacturing costs.

Supply Chain Uncertainty

Variability introduced by suppliers, manufacturing processes, and customer demand.

Safety Stock

Extra inventory held to protect against supply-chain uncertainties and meet service levels.

Supplier Delivery Performance

A supplier’s track record of on-time, in-full deliveries used in negotiations and planning.

Manufacturing Reliability

Consistency of production processes to meet specifications and schedules.

Total Quality Control (TQC)

Methods such as statistical process control used to improve process reliability.

Postponement

Delaying final product customization to increase responsiveness and reduce inventory.

Omnichannel Supply Chain

Integrated fulfillment network that serves physical stores, e-commerce, and other channels seamlessly.

Amazon Effect

Pressure on retailers to offer fast, transparent fulfillment modeled after Amazon’s service standards.

Service Supply Relationship Hub

A model where the service provider coordinates directly with multiple suppliers on behalf of the customer.

Partnering / Sole-Sourcing

Preferred supplier relationships to reduce delays and share information efficiently.

Perishability (Services)

Loss of productive capacity when service resources are idle because services cannot be inventoried.

Bidirectional Optimization

Simultaneously achieving the best outcome for both customer satisfaction and service provider efficiency.

Distributed Service Workforce

Mobile employees delivering services at customer sites across locations.

Idle-Time Training

Using anticipated worker downtime for skill development to reclaim productive capacity.

Professional Services

Knowledge-intensive services delivered by licensed or highly educated professionals (e.g., lawyers, CPAs).

Cognitive Knowledge (Know-What)

Basic disciplinary mastery obtained through education and certification.

Advanced Skills (Know-How)

Ability to apply disciplinary rules to complex, real-world problems effectively.

Systems Understanding (Know-Why)

Deep grasp of cause-and-effect relationships enabling anticipation of unintended consequences.

Self-Motivated Creativity (Care-Why)

Intrinsic drive and adaptability that sustain a professional’s knowledge advantage.

Partnership Structure

Ownership form common in professional firms where partners hold equity and govern operations.

Margin

Profit as a percentage of fees (fees minus costs divided by fees).

Productivity (Professional Services)

Fees earned per staff member; influenced by value (fee per hour) and utilization.

Leverage

Ratio of professional staff to partners, driving profit per partner through billable hours.

Utilization

Billed hours divided by available billable hours, indicating capacity usage.

Backlog

Work on hand awaiting execution; difficult to maintain due to client demand for immediacy.

Nonbillable Activities

Essential tasks such as business development and training that generate no direct revenue.

Profit per Partner

Key success metric combining margin, productivity, and leverage in professional firms.

Outsourcing

Contracting external suppliers to perform services formerly done in-house.

Do-Versus-Buy Analysis

Evaluation of internal capability versus external purchase when deciding to outsource.

Vendor Selection

Process of choosing suppliers based on criteria like experience, cost, and proximity.

Performance Evaluation (Suppliers)

Assessing vendors on quality, dependability, flexibility, and communication.

Facility Support Services

Outsourced routine property tasks such as janitorial work and waste disposal.

Equipment Support Services

Outsourced maintenance or repair tasks where vendor proximity for emergencies is crucial.

Employee Development Services

Training and educational services procured to enhance human capital.

Facilitator Service

Routine information-processing tasks outsourced, such as bookkeeping or travel booking.

Professional Outsourced Service

Strategic services like legal or advertising requiring top management involvement.

Central Stock Pool

Consolidated inventory accessible by all channels in an omnichannel network.

Recycling / Remanufacturing

End-of-life product processes returning materials to useful life, reducing landfill disposal.

Downstream Information Utilization

Using data from later stages (e.g., retail sales) to improve upstream planning.

Mobile Worker Travel Time

Unproductive interval between service jobs that firms seek to minimize.