Service Supply Chain Strategies to Increase Corporate Profitability
Morris Cohen - June 22, 2004

Introduction

The last decade has witnessed a substantial shift in emphasis on the part of many OEM manufacturers from a focus on the products they produce to a concentration on their customers and the value that their customers derive from ownership and use of these products after the initial product sale. The importance of service is made clear in a recent AMR survey[1] of manufacturing companies which revealed that service represents 24% of their revenue and 45% of their profit contribution. With only 20% of IT spend allocated to service, there is indication of value in increasing corporate attention to the service area...