College Papers

Service operations differ from manufacturing based operations with some characteristic of services such as intangibility

Service operations differ from manufacturing based operations with some characteristic of
services such as intangibility, inseparability product and consumption, heterogeneity and
inapplicability of warehousing function. These characteristics need to be considered when the
supplier selection criteria are determined in the service supplier selection process (Baltacioglu
et al., 2007). In order for the supplier relationship management system to perform successfully
in the service industry, service firms and their suppliers should collaboratively create and
deliver services faster and at the lowest total cost (Cho et al., 2012). Price, quality and on-time
delivery are the most considered three supplier selection criteria in the literature; however they
are not enough to select strategic supplier in today’s competitive environment. Reliability,
technical capability, sustainability, flexibility, service quality and communication skills are some
other factors which are need to be considered to develop a long-term supplier relationship
(Muralidharan, Anantharaman, ; Deshmukh, 2002).

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