No classic supply chain
As companies providing services generally do not have a classic supply chain in the core of their business, each service company has a different view of their supply base.
Your business may consider information technology highly critical to your daily business operations, while other service companies believe staffing or marketing are essential supplies to their business.
Healthy cash flow
For service companies, it may not always be clear what a healthy cash flow means to each of their suppliers. This could potentially lead to sudden disruptions in the delivery of goods or services. If you run a service business, your indirect supply base can be diverse and large. For that reason, it may not be as transparent as you would like it to be.
In addition, supplier ownership may be dispersed over multiple people in your business. This could make it complex for the procurement team to manage it.