It is probably no surprise to you that truly exceptional companies have been able to generate substantial profits from better management of their service supply chain. In fact, some companies have seen tremendous growth in both top line revenue and bottom line profitability by maximizing the value of their Service Supply Chain.
In essence, they’ve gone through a major transformation from managing their services and support operations as cost centers to profit centers, or strategic lines of business. For best in class companies, service can present 45% or more of total corporate revenue and 30% or more of total corporate profits. Furthermore, companies who are truly maximizing the value of their service supply chain and managing it as a profit center can experience Net Operating Income (NOI) in excess of 25% on the service revenues they generate.