Services Supply Management: The Next Frontier for Improved Organizational Performance

Abstract

This article explores how the purchase of services is managed within the organization, the risks associated with current services purchasing practices, and how to improve the professional management of services purchases. Survey data obtained from benchmarking research performed by CAPS Center for Strategic Supply Research reveal that purchasing services is viewed as more difficult than purchasing goods. In addition, while purchasing of services is growing in importance and magnitude, the resources to manage it are not. Accordingly, there are huge opportunities for organizations to improve their services purchasing in terms of cost and value, by dedicating more, and perhaps different, resources to services purchasing. Developing an outstanding capability to purchase services, and to manage that purchase, could truly be the next frontier for improved supply chain and organizational performance.