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Service is playing an increasingly important role nowadays as more and more companies are supplying a service concept instead of a product. Take photocopiers, for example: they are no longer bought and owned by the organisations who use them, but instead the companies pay on a cost-per-copy basis.
Service logistics orchestrates all the logistics-related aspects that this entails - from the purchase of a product or service until the end of its useful life. The main challenge lies in coordinating all the elements, which can include: call centres, (remote) diagnostics, maintenance engineers, spare parts, downstream logistics and returns, repairs and recycling/re-use. These processes must be designed to run as efficiently as possible. Equipment downtime costs companies dearly, yet excessive maintenance and an overly large inventory of spare parts doesn’t come cheap either. How can the efficiency of this be optimised?
Service logistics is predominantly aimed at connecting flows of information to flows of goods in the later stages of the product life cycle. Because service logistics is characterised by the ‘just-in-case’ principle, with smaller transport volumes and low inventory turnover, this demands a whole other kind of knowledge and a different way of applying specific logistics management and IT solutions. Within service logistics, the focus is on chain management and coordination - just like within 4C - but the processes and innovations required are substantially different.
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