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In today's economy, utilities have become a significant expense for any business. Should utilities be managed as a supply chain resource? if so, should utilities be managed by building services or supply chain management?

User Varunl
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Final answer:

Utilities such as water and electrical service are considered natural monopolies and can be managed as a supply chain resource. There is a potential role for both building services and supply chain management to collaboratively manage utility services, optimizing usage and managing expenses efficiently.

Step-by-step explanation:

In evaluating whether utilities should be managed as a supply chain resource, it's essential to acknowledge that utilities such as water and electrical service are often natural monopolies in the economy. The concept of a natural monopoly suggests that the market is most efficiently served by a single provider due to the high infrastructure costs associated with duplicative services, like laying multiple pipes or wires. Companies managing these utilities aim to operate as cost-effectively as possible, given their significant impact on operational budgets.

However, improvements in supply chain management can enhance the efficiency and technology of service delivery, potentially reducing costs. When it comes to managing utilities, considering them as a part of the supply chain might encourage greater collaboration with building services to optimize usage and manage expenses better. Both building services and supply chain management have pivotal roles to play in the strategic oversight and operational efficiency of utility services.

Therefore, utilities could be collaboratively managed by building services, which typically oversee the direct use and effects of utilities, and supply chain management teams, who would use their expertise in cost reduction, efficiency improvement, and sustainability to manage utility use as a resource.

User Lewislbr
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