In one embodiment, an apparatus includes a processor and logic configured to designate one of a plurality of endpoint virtual network identifiers (EPVNIDs) for each endpoint device in a network, wherein each EPVNID is configured to be shared by one or more endpoint devices, designate a common waypoint virtual network identifier (WPVNID) for all transparent waypoint devices in the network which perform a same function, designate a unique WPVNID for each routed waypoint device in the network, designate a common virtual network identifier (VNID) for all virtual switches in a single virtual network, wherein a different VNID is designated for each virtual network, and create a service chain table comprising each VNID, WPVNID, and EPVNID designated in the network individually correlated with at least a pair of VNIDs: a source VNID and a destination VNID, based on one or more policies affecting application of services to packets in the network.