Lean and/or agile supply chain management: Model application for the service industry

Various forms of supply chain management (SCM) research have been carried out in many different manufacturing or industrial settings over the last decades. However, less research exist concerning supply chain management in the service industry. Yet, definitions of supply chain management as they pertain to the service industry are only slightly different than those definitions of SCM in manufacturing. In manufacturing SCM research, most definitions emphasize the coordination of activities, as well as information sharing, cross functions and cross firms. Service SCM also focuses on processes, but regard it as difficult to measure performance, since services are non-tangible. Among several concepts and frameworks used in the traditional SCM research; the concepts of lean and agile have recently been focused with regards to how they can improve supply chain performance.
Therefore, the aim of this paper is to illustrate supply chain management implications, based on the lean and agile concepts, for the service industry in general and the facility management industry specifically. The paper illustrates how both “lean” and “agile” supply chain management models and concepts can be used in order to enhance both effectiveness and efficiency in the service providing supply chain. The article is based on an action research case study which illustrates how the concepts of lean and agile have been applied to improve the service supply chain. The paper also provides concrete results of process improvements gained in a facility management organization where these new concepts for customer relations and interactions were established.