Managing service supply relationships

Service supply relationship management is a systems approach that recognises the customer-supplier duality found in the delivery of services. For services, customers are suppliers of significant inputs (i.e., minds, bodies, belongings, and information) to the process. Implications for management arise from the fact that service supply relationships are inherently bi-directional. Three important features of service supply relationship management are bi-directional optimisation, management of productive capacity, and managing risk. Service supply relationship management incorporates customers into the knowledge management strategy of service companies to enhance the value and quality of the services provided.