Video: Applying traditional supply chain strategies to the service sector

GRA Director James Allt-Graham talks with GRA Director Dan Knox about applying traditional supply chain strategies to the service sector. 

In the interview James answers the following questions:

  • What are the main drivers for the interest in supply chain engagement in the service industry?
  • What are the roles of supply chain in the service industry?
  • How do you compare supply chains in service industry to other sectors?
  • Who are the clients GRA works with in the service sector?

GRA views service chain management as an integrated system that must be considered holistically and be supported by a dedicated function within an organisation.

Our Service Chain Excellence framework enables service organisations to approach the service chain management task in an integrated manner.

There are 3 key sections: Business Strategy, Target Operating Model and Service Chain Operations. In a service chain with high maturity, an organisation will have pipeline visibility on service requests (demand) as well as recruitment (supply).

This is what we call a Demand Driven Service Chain (DDSC). A Demand Driven Service Chain is able to establish its operations as a competitive advantage through improving service availability, capacity planning & scheduling, routes optimisation, workforce composition (e.g. FTE vs. PPT) and other operational elements.

Find out more about Service Supply Chain

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"We commissioned GRA to complete a detailed review of our supply chain and identify opportunities to improve our performance. GRA created a clear and comprehensive strategy to transform our business towards best practice and enable our supply chain to become a source of competitive advantage."

– Melinda Johnston, Supply Chain Transformation Lead, Allnex

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)