Answered Essay: Why is the role of the customer even greater in driving the service supply chain than it is in a

Why is the role of the customer even greater in driving the service supply chain than it is in a manufacturing supply chain? Describe the difference between SCM and logistics. A company’s SCM strategy should align with its business strategy. Provide an example of a business strategy and the SCM strategy that would support it.

Expert Answer


4. In a service industry such as healthcare or banking, the customer interacts directly with the provider. Individual customer behavior can be highly variable and thus impact the resulting ‘delivery’ of the service in aspects such as quality, timeliness, accuracy, etc.

5. SCM is strategic and managerial, focusing on relationships and processes across firms; logistics is tactical and specifically involves moving and positioning inventory throughout the supply chain. Logistics is vital to SCM as it is a key supporting function.

6.  Through Walmart’s development of a strategic supply chain management system, they have been able to optimize their logistics, procurement, and inventory management system which has been a key factor in reinforcing their everyday low price promise.

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