Service management

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Service management in the manufacturing context is integrated into supply chain management as the intersection between actual sales and the customer point of view. The aim of high-performance service management is to optimize service-intensive supply chains, which are usually more complex than typical finished-goods supply chains. Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties. They must also accommodate inconsistent and uncertain demand by establishing more advanced information and product flows. Moreover, all processes must be coordinated across numerous service locations with large numbers of parts and multiple levels in the supply chain. Among typical manufacturers, post-sale services (maintenance, repair, and parts) account for less than 20% of revenue. However, among the most innovative service-oriented companies, those same activities often generate more than 50% of the profits. ISO/IEC 20000 is the internationally acknowledged for service management.