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Adopting IoT as part of the greater service and business environment involves keeping up with industry changes as they take place. That means incorporating better measures when needs arise in any business area and keeping cost-effective solutions in mind for future progress of the company as a whole.

 

Emily Hackman, Global Director of Marketing, Astea, looks at how the modern phenomenon of the connected customer is driving heightened service expectations that field service companies must meet...

In the last few years we have gone through a true revolution when it comes to digital connectivity.

The widespread adoption of tools that offer ever-greater connectivity amongst the general populace is increasing at ever-faster speeds. The end result of this increase in connectivity for businesses is a rising need for meeting rapidly heightening customer expectations when it comes to service quality.

Indeed, this is truly the era of the connected customer—consumers have become accustomed to having an unprecedented access to the knowledge and insight offered by the Internet right at their fingertips. And in a world were smart phones are virtually omnipresent, that access is 24/7/365, no matter where they happen to be.

 

Today’s consumers can instantly interact with friends and associates via text or social media, they can quickly summon a ride, make restaurant reservations, or order a gift with just a few clicks and swipes on their phone. Looking back even just a decade we would never have imagined the sheer pervasiveness of connectivity that we enjoy today and the huge impact it would have on our lives.

Yet for field service business, such increased levels of connectivity can be a double-edged sword offering both challenges and opportunities in equal measure.

Rising Expectations of the Connected Customer

Thanks in no small way to the companies like Uber and Amazon - who have embraced technology to not only disrupt the markets they exist within but also in many respects establish entirely new markets, the Connected Customer is intimately aware of the capabilities mobile computing bring to service operations.

Thanks to advances in mobility, their local florist or Pizza Delivery company can provide them with updates on their orders in real time. So why shouldn’t they expect field service technicians to be able to access those same or even more advanced mobile capabilities?

When it comes to service, connected customers now expect as standard:

• Real-time alerts when technicians are on their way to the job site/residence
• Technicians that will arrive armed with their individual customer histories and preferences
• A service organisation that can respond quickly to emergency calls
• The ability to receive real-time updates on the status of their service, both online and via their mobile phones
• Technicians that have full access to the repair information and parts that they need to complete the job

In fact, whilst just a few years ago mobile technology in and of itself offered a competitive advantage, mobility is now basic table stakes when it comes to field service.

And today, by harnessing the technology, service organisations are able to satisfy the needs of their customers. This can hugely effect how they refine and improve the customer experience, enhance their reputation, and reduce both employee and customer churn

Leveraging Customer Connectivity

In the world of enterprise, companies are rapidly embracing mobility.

According to data from Frost & Sullivan, 47% of North American businesses have at least 11 different mobile worker apps deployed, and 88% plan on introducing at least one new employee-facing app within the year.

According to the same data, companies have found that key mobility benefits include:

 

• More efficient business processes (49% of respondents),
• More productive employees (46%),
• Improved collaboration (46%),
• Cost savings (45%)
• More satisfied employees (44%),
• Enhanced customer engagement (43%),
• Competitive advantage (42%)

Of course, having a mobile solution in place does not automatically enable a service organisation to effectively serve the connected customer.

Focusing on reducing costs, whilst simultaneously improving productivity and efficiency is no longer the end game when it comes to mobility.

This is largely because whilst reducing costs and completing more jobs per day is good for the bottom line, they don’t necessarily assist in improving customer satisfaction and are not always in line with value creation in the long-term  and how quickly you can get them back up and running.

 

The brutally honest fact is that your customers don’t particularly care when you save money on fuel or can bill more jobs per month, they solely care about whether you’ve met your SLAUltimately, service customers simply want reliability and visibility. Did the service organisation get their technician to the job site quickly, armed with the right parts and repair knowledge? Were they able to complete the repair in one visit?

Every decision the service organisation makes should be weighed against a backdrop of the overall impact to the customer. The fact that customers are now highly connected makes it easier for service organisations to meet their needs, provided that they have their own robust mobility solution in place. But that is just the tip of the iceberg.

By leveraging analytics, the input your connected customers provide can help you understand consumption patterns and deliver a personalized solution—and potentially do so at a premium, creating new pricing models and differentiated service models, and establishing new revenue streams in the process.

 

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Want to know more - there is a white paper on this subject available for Field Service News subscribers - and FSN subscription is complimentary for industry practitioners.

Click here to apply for a complimentary industry subscription to Field Service News and get the white paper "Preparing for the Connected Customer" sent directly to your inbox now

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Resource Type: White Paper
Published by:  Astea
Title: Preparing for the Connected Customer

 

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Field Service Professional? Click here to apply for a complimentary industry subscription to Field Service News and get the white paper "Preparing for the Connected Customer" sent directly to your inbox now

 

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Synopsis:

This is the era of the connected customer—consumers who are used to having the entire Internet at their fingertips, who can instantly interact with friends and associates via text or social media, and who can quickly summon a ride, make restaurant reservations, or order a gift with a few clicks and swipes on their phones.

Connected customers present both challenges and opportunities for field service organisations. Their expectations have increased based on their experiences interacting with other types of service providers such as Amazon.com, Uber, FedEx, and Zipcar.

These customers want more information, along with faster, better service, and more control over their experience.

This white paper asks if your organisation is ready to meet their increasing demands...

Overview:

Supported by research by Frost & Sullivan,  this white paper covers three key areas:

Rising Expectations of the Connected Customer

Connected customers are intimately familiar with the capabilities of mobile computing technology in a way that they were not 10 years ago. They expect field service technicians to be able to access those same or even more advanced mobile capabilities.

Leveraging Customer Connectivity

Enterprises are rapidly embracing mobility. According to data from Frost & Sullivan, 47% of North American businesses have at least 11 different mobile worker apps deployed, and 88% plan on introducing at least one new employee-facing app within the year.

Meeting the Challenge of the Connected Customer

Engaging effectively with connected customers requires an investment in field service management (FSM) and mobile technology that can keep pace with the technology in which your customers already have access. There are a number of challenges involved in that process, including:

• Navigating a fragmented and confusing market
• Predicting customer needs
• Determining the best technologies to deploy

 

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Want to know more? If you're a Field Service Professional then click here to apply for a complimentary industry subscription to Field Service News and get the white paper "Preparing for the Connected Customer" sent directly to your inbox now

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Today's connected customer is more empowered than ever before. This brings about it's challenges and also its own opportunities. Are you ready to embrace these? Are you prepared for the connected customer?

This handy infographic from Astea offers a useful checklist and some helpful insight into making sure your company is taking advantage of opportunities rather than coping potential threats.

 

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Want to know more? Field service professionals can access an accompanying white paper "Outsourcing Field Service" after claiming their free subscription to Field Service News! Click here to subscribe and get the white paper sent to your inbox now!

 

 

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Want to know more? Field service professionals can access an accompanying white paper "Outsourcing Field Service" after claiming their free subscription to Field Service News! Click here to subscribe and get the white paper sent to your inbox now!

 

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Competition in the Field Service Management Solution sector is fiercer than ever and new technology is constantly emerging. So we asked a series of industry experts what we should expect of our FSM solution today and what should we look for in a provider?

Features as Standard?

With the amount of functionality in standard FSM applications constantly improving, new innovations quickly become standard features. With this in mind what is the baseline level of functionality we should expect from an FSM solution? I.e. Should a solution include a mobile piece, scheduling, parts management?

Rue Dilhe – Managing Director, Exel Computer Systems explains their solution as being predominantly aimed at “established SME’s within the service industry, these companies are, generally speaking, well aware of the benefits available from a full breadth system.”

“The baseline functionality the majority of our prospective clients look for encompass pretty much all of the technologies and functionality offered. If we are able to show them functionality they weren’t aware of, such as configurable user dashboards displaying pertinent KPIs and reports, then these soon make it onto their requirements list, ” he adds.

“We expect the following to make it onto the majority’s ‘must have’ list: fully integrated solution, a dynamic/assisted scheduler, real-time information, remote engineer application, management reporting, user pertinent reporting, document management, call/case centre management, service oriented CRM, job information and technical documents pushed to engineer device, customisation tools, workflow tools, financial management and the ability to invoice on-site. Not to mention, the preference to partner with a well-established solution provider.”

For Kony, the focus is perhaps more understandably on mobile, as Steve Luong, Sr. Director of Product Marketing, explains.

“Although there are many FSM solutions in the market that address different needs, back-office capabilities such as scheduling, parts & inventory management and team allocation are commoditised features now.”

“Mobile is now a critical functionality in modern solutions, with native apps providing a better user experience and performance over others, allowing leading service organisations to differentiate themselves. Customer-centric solutions that even include the end user into the business process will soon be the new must-have functionality.”

 

Tesseract’s Kevin McNally, comments “In our experience, customers are looking for a best of breed service solution.”

“This includes service contract and asset management, service call taking and scheduling, planned maintenance control, stock & logistics management, quoting, job costing/invoicing and Engineer mobile communication. We are also seeing the requirement to control internal workshop / repair centres as a growth area requiring a different solution to that of field processes.”

“One of the often-forgotten areas of a solution is reporting,” he continues.

“The ability to report on any piece of data is crucial and a reason many companies are looking for change. Our customer’s clients have also become more demanding, and the ability to communicate externally also needs thought, whether that is a web portal, client reporting or direct data integration.”

Deb Geiger, VP Global Marketing, Astea International points out that there is not a 1 size fits all requirement for field service.

“I think that it all depends on the individual needs of the organisation in regards to baseline level of functionality. For example, if a company manages a mix of internal and external subcontractors then the base of functionality also needs to include third party vendor management capabilities,” she comments.

“But at a general level, the most basic elements of FSM solution should have the ability to manage service contract and entitlement information; asset/equipment information; scheduling, parts management, mobile (online & offline), customer self-service, and performance management/reporting as well as ability to configure solution without coding.”

For Mark Homer, Vice President Global Customer Transformation at ServiceMax, a GE Digital company “Any field service management solution worth its weight should handle work planning and scheduling; give technicians all they need to complete a job and close out a work order from a mobile device (on or offline); manage entitlements while technicians are onsite and handle service supply chain logistics”

 

However, he goes on to add that “as field service management evolves to become more integrated in other aspects of the industrial economy and proves a necessary lynch pin of optimising the performance of industrial equipment, these basic functionalities will progress to include more advanced features.”

Again scheduling and mobility are tow key components that are expected by ClickSoftware’s Paul Whitelam, Group VP of Product Marketing “Baseline capabilities for FSM consist of scheduling and mobility (specifically communication with the field and task execution support). Beyond that there are certainly additional aspects such as planning, forecasting, customer engagement, analytics and so forth, but as Field Service Management software becomes increasingly sophisticated, thinking in terms of feature sets can be something of a red herring,” he explains.

“In particular, there are non-functional aspects such as open APIs and extensibility, as well as the deployment model that can have a huge impact.

For example, software delivered via multi-tenant SaaS can offer a significant advantage in terms of agility and speed of deployment. More so than a feature list, it’s the way in which technology is combined with processes and people that delivers business advantage.”

Buying for the future...

So, whilst there is of course a variety of different elements that different experts think of as standard requirements, there are indeed some universal core functionalities that should now be embedded within any FSM solution, with these primarily being some scheduling automation, a mobile tool for engineers in the field and dashboard or similar reporting tools for monitoring what is of course a mission critical part of the business.

But one thing that is certain in our industry is that technological innovation is never far away. Whether it be connected devices, quantum annealing, or augmented reality every where we look there are technologies being intrinsically linked with field service that could change the way we approach service delivery entirely.

So given the constant development of technologies within field service management solutions, what steps should field service companies take to ensure that the solution they opt for is future proof?

Exel’s Dilhe explains that from their experience “from the outset, prospective clients are usually pretty confident they want a common, ‘out-of-the-box’ solution, and this is true for maybe 90% of the implemented solution, the remaining 10% however, the client can usually see a benefit in configuring the solution to the way they work now, whilst having the ability to adapt to how they may work in the future. It is for this reason that within the Eagle Field Service solution Exel provide a customisation tool-kit.”

“Customisations can range from the introduction of simple validation on fields to new panels and scrolling data sets for data entry and data display. Clients are able to extend any table by adding any number of columns for storing additional information, these can be managed from within the software without the need to make any manual database changes.”

Of course customisation sits at the very heart of the Kony offering also however, it is the pedigree of the platform and the provider themselves that offer the best glimpse of how future proof a solution is in the eyes of Luong.

He comments: “To ensure solutions they opt for are future proof, field service companies should look at solutions that have a strong technology stack supported by an underlying platform and cloud. These characteristics will allow for rapid implementation but more importantly, enable simple and fast updates to adapt to a quickly changing marketplace.”

“Additionally, understanding the solution provider’s roadmap and view of the market will ensure alignment between the field service company and provider into the future."

For McNally the responsibility should be shared by the providers and their customers.

“It is difficult to foresee future technologies in the fast-moving modern world, but customers should try to understand the impact of these within their own markets,” he begins.

 

“As an example, the “Internet of Things” may be viewed by some verticals as a distant reality but equipment such as coffee machines, compressors and many other products viewed as “unconnected” are today providing useful data. This information is allowing providers to be both reactive and proactive in their service delivery. It is vital that companies understand the data and use this as a competitive edge.”

“It can seem unfathomable for small and medium size service providers to understand the complexities of new technologies but suppliers should be assisting their customers on their future requirements and helping them understand the benefits, as these may already be “out of the box” based on previous implementations within that vertical market.”

This sentiment is echoed somewhat by Geiger who explains that when selecting technology we can’t just think of today.

“What is right for companies at the moment, might not suit as their business grows and evolves. It’s important for businesses to not only to understand their immediate need but to get the full picture of their objectives so that companies can find a solution that will support them today but also in the future. Even if an organisation may have very limited requirements today, it is much easier to start with a platform solution that has rich capabilities and a high level of configurability instead of a solution that just meets the requirements for today.”

“By leveraging a solution that offers a high-level of configurability, it is very easy for companies to remove fields or turn features “off” with a feature-rich solution, to get the base feature set to support their needs today. But as their business model changes, they have the tools to quickly adapt the solution without having to pay for customisations or having to wait until the software vendor adds specific features to a roadmap if they even decide to add those features at all.”

“You never know what is around the corner, so you need a solution that gives you the flexibility to add functionality as and when you need it.”

For ServiceMax’s Homer however, the answer is simple - the future belongs to the Cloud.

“Because field service organisations rely on remote workers for the majority of the information needed to run their business, flexible and constantly updated cloud-based software is a must – and a pre-requisite for mobile synchronisation and offline capabilities,” he asserts.

“And when it comes to enabling field personnel, companies need to seek out vendors with proven mobile capabilities. They need to find providers who continually invest in the latest mobile architectures for deployment ease and full functionality across all mobile platforms.”

“Lastly, and most importantly, customers need a platform that grows with them. They need a system that easily supports configuration with workflow management that organises standard operating procedures not only in the office, but also in the field. And it should all work together to keep service delivery consistent from the office to the field.”

Cloud-first is again echoed by ClickSoftware’s Whitelam, who also sees the need for field service companies to keep their finger on the pulse n terms of how emerging technology could impact their vertical markets.

“It is often much easier to predict new technology than it is to predict which of these innovations will be widely adopted, and in what manner. Field service companies have to be attentive to what their customers value the most and remain flexible in the face of new technology,” he comments.

 

Indeed Whitelam lists the following as the key to ensuring a future proof approach are:

• Move to cloud-first solutions which enable fast, seamless, and frequent updates to the latest feature sets and enhancements—something all but impossible with on-premises installations.
• Adopt systems with open APIs and extensibility so that new capabilities—be they IoT enabled devices or Augmented Reality goggles—can be easily adopted in a modular way.
• Ensure your FSM solution is highly configurable, and not limited to a particular data model. For example, IoT devices represent a new set of inputs or variables to be incorporated into your operations. Having a generalised approach to data management, coupled with the processing power of a cloud platform enables companies to translate this data into actionable—and automated—improvements.

Solution provider support?

It is interesting to note that many of the experts that we spoke to identified a shared responsibility between vendor and customer to understand the technology trends and establish a sensible roadmap of FSM technology to implement.

Of course in any industry where the product is as absolutely vital to business  operations one would expect a consultative approach from solution providers, but this willingness from many such providers to engage with and in many ways educate the market.

This leads us to question what other factors, aside from feature set and cost, should field service companies take into consideration when selecting a solution provider?

At Exel would prefer to see the selection process as the client choosing a business partner, instead of supplies,” replies Dilhe.

“The chosen solution will become an integral part of the business and a business tool used by most, if not all, employees. As such, it makes sense to ensure you choose a solution provider that can meet your company’s needs, both now and into the future.”

 

“With a 32 year history of implementing our solutions and supporting our clients, we feel our services far exceed those provided by a reseller,” he concludes.

McNally is certainly on the same page here also .

"The implementation of a system should be viewed as a partnership,” he opens, before adding “and partnering with an experienced provider who has a track record of delivering both technology and functionality is of key importance.”

“A strong vision and roadmap is also vital, because implementing a system  should be viewed as a long-term relationship. Speaking with reference customers can be a useful exercise. The software is only one part of the picture, implementation and support are also just as important as is the relationship between the two teams.”

Choosing a provider whose vision aligns with the field service company is key states Luong.

“Field service companies should understand how a provider plans to leverage new technologies and smart services such as IoT, sensors, beacons, image recognition capabilities, integration with cloud services or other public services such as maps, storage, identification,” he says.

“These technologies and services can totally transform existing business processes to make them more efficient, driving costs down while improving customer loyalty by providing a better overall experience.”

“As service continues to become a key differentiator, companies need a partner who understands service – a specialist who can help them get the very best from the software platform, and give them the tools to take service to the next level.” Geiger adds.

“Transitioning to a new solution is often seen as a risk by most organisations - posing potential challenges for business continuity, adoption and usage, and data security”

 

“Many solution providers therefore pride themselves on the speed on their on-boarding process – to get companies up and running on their solution in a matter of weeks. However, aiming for speed often comes at the expense of quality – things overlooked, staff not fully trained, and opportunities missed”

“A quick on-boarding process may potentially cause more problems than it solves. With something as mission critical as a company’s service business, it is worth the time and effort to ensure successful deployment and adoption.”

“Additionally it is important to look at service solutions holistically. There are many cool technologies and new capabilities are entering the market constantly. It is critical to look at all of these solutions in a holistic manner and the value that they will provide to the service business.”

“It is imperative that the solutions share data intelligently between applications, allowing operatives to make decisions and take action with full insight into the situation,” she concludes.

For Homer, another consideration is that “field service organisations need to consider time to market, as with any other investment in enterprise software.”

“Implementation time, employee adoption, and training all need to be looked at critically as they all impact the return on investment. Software vendors should have good options for buyers to evaluate these aspects of their products, as well as a very good understanding of the nuances of the service domain. Without service expertise, product development capabilities can stall and implementation projects can run over budget.”

Finally, Whitelam believes that besides features and costs, field services companies should strongly consider a number of other factors when selecting their FSM solutions including:

• Company viability and focus: Look for external proof points and proven implementations. To what extent is the company focused on FSM?
• Vision: What does the roadmap look like? Does this align to the way you think about your field service business going forward?
• Experience: Has the company worked with companies like you before?
• The Team: This is a long-term partnership, where a strong relationship can lead to great things. Is this the team you want to partner with?
• Support: What kind of ongoing support is available? 24/7? Global? Will this vendor be responsive and strive for your success?

Indeed it seems that whilst the features of field service management solutions are ever evolving, the selection of the right tool for your business should look far beyond a summary list of features on your wish list and ask what can the provider do to make this a partnership that works both as soon as possible after implementation and also in the future.

The right solution is there for you, just look with open eyes.

 

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Debbie Geiger, Global VP of Marketing for Astea International looks at the growing importance of outsourcing amongst field service and why connectivity is the key to maintaining service standards right across third party providers…

 

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There is also a white paper on this topic which is available to fieldservicenews.com subscribers.

If you are a field service professional then you can subscribe and get the white paper sent straight to your inbox by clicking here and completing the brief application form

 

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For many field service organisations, outsourcing part of their service delivery operations has been a necessity of how they operate for a long time.  Whether it be to help meet seasonal demand or deliver service on products sold in geographies far beyond their home market, outsourcing field service operations to a specialist third party is common practice and has been for many, many years.

What has changed recently however, is that in today’s age of digitalisation, where more and more frequently the field tech call may truly be the only 1-2-1 human interaction your customer’s have with your brand, we are no longer just outsourcing repair and maintenance work, we are now outsourcing a critical customer engagement opportunity as well.

 

And in this era of digitally empowered consumers, ready to tweet, post or blog every time they have an axe to grind, you want to make pretty darn sure your third party partners are not letting you down in the CSAT stakes.

It is now absolutely critical for service organisations to increase their visibility into outsourced service processes. However, the good news is that extending your service chain no longer means losing track of how well your customers’ needs are being met.

The technology exists to provide your partners’ techs the ability to capture customer, product, equipment, and work order information.

And this holds true even when we factor in that field service companies now also have more options available when it comes to structuring their outsourcing relationships, from traditional agreements where third parties agree to complete a set number of work orders, to more integrated scenarios where the third-party provider becomes a true extension of the service organisation and its’ brand.

A Changing Mix of Outsourcing Partners

It likely comes as no surprise to you that the majority of service companies (over three quarters according to research by The Service Council) are already outsourcing at least some of their field service operations. In fact, the same research also shows that when engaged, third parties usually undertake about a third of assignments on average.

However, the general nature of outsourced service is currently changing as new models, often driven themselves by technology, have begun to emerge.

In the past service organisations would hand handed some portion of their work load across to a third-party provider, maybe a managed dealer network. However, the rapid rise of the gig economy is beginning to challenge the existing status quo.

 

Independent contractors are likely to continue to expand their presence, and some third-party providers are emerging that actually pool these contractors and manage work assignments via online portals and other similar tools, which have proven to be hugely popular to date for contractors and service organisations alike.

And with many companies facing an ageing workforce crisis this trend is only set to continue, as volumes of work increase, whilst for many, just maintaining capacity could be a very real challenge.

Basically, if your company hasn’t yet thought about how to handle the use of third-party providers and independent contractors, my advice is to go start that process right now.

Connectivity is King

Of course choosing the right partner to outsource your work to is absolutely critical to your success. Remember, you are putting the strength of your brand in these folks hands. You have to be confident that they can not just meet your customer’s expectations but exceed them, and that they can do so on each and every service call.

You must demand your partners deliver the same levels of consistent, quality service you can expect form your own team – but this can be very difficult (if not impossible) to maintain if the right controls are not put into place.

Service organisations often complain about a loss of service quality when outsourcing work, so it is critical to establish ways to track processes and controls throughout the service supply chain.

 

For both parties sake, any agreements with your third-party providers must have total accountability clearly defined and the ability to monitor and manage performance is essential for such agreements to work.

That’s why connectivity is so crucial when working with third-party providers.

You must be able to quickly communicate information electronically to your partners and receive data back in near real-time to ensure you always have the visibility needed. Of course, connectivity is also very important for providing access for the third-party provider to schedule jobs efficiently, retrieve critical customer/asset data, and effectively communicate work order information back to you.

Technology: The Key to Successful Outsourcing

The good news is that the technology is in place today from Field Service Management (FSM) solution providers like us to make the seamless transition of data from one system to another so much simpler than it would have been even just five years ago.

However, such capabilities, whilst slowly becoming more common are far from ubiquitous amongst FSM solutions and dedicated support for managing third-party maintenance teams currently remains a specialist toolset.

Therefore, it is wise to do your research to understand what solution will work best for you, and ensure that it is a stipulated part of your agreement with any third party service organisation that the tools they use to empower their engineers are in harmony with your own choices.

It’s not that hard to get working with third party service providers right in this day and age - but at the same time it is more it is critical than ever that you don’t get it wrong.

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Kris Oldland, Editor-in-Chief Field Service News asks isn’t it about time we learnt to manage spare parts as well as we can manage the mobile workforce?

When looking through the list of topics discussed in most field service conferences it seems that there is one area that is often heavily overlooked - which is namely the topic of parts distribution. So often we talk about the importance of getting the right engineer, with the right skills to the right job and getting them there on time.

Of course it’s all a moot point if they don’t have the right parts needed to complete the job.

Yet head to any industry event, or look through the pages of any industry journal (including even our own humble offering) and you will find far more content that is weighted towards managing the dispatch of engineers than you will see focussed on the dispatching the parts that they need to do their job.

In our defence it’s an easy trap to fall into - there are just so many more voices shouting about mobile workforce management than there are shouting about parts management and service logistics.

The challenge is that whilst the service that logistics providers can provide to field service organisations is absolutely crucial (and can offer very tangible performance benefits), in the wider scheme of things we must remember two key factors.

 

Firstly, the number of companies that can offer the ability to deliver across international borders and to the type of time scales that field service organisations require are very few and far between. Secondly, within such organisations, field service and parts management is really just a very small component of their wider operations, so perhaps gets a touch overlooked.

Yet, slowly that is beginning to change.

Companies such as FedEx, Keuhne Nagel and UPS have all stepped up to the plate to try and help resolve some of the pain points felt by field service organisations in relation to their parts delivery. Also we are beginning to see more and more senior logistics professionals become focussed on field service as a sector.

One such individual is Tim Helsen, Netherlands Country Manager, UPS who was speaking recently at the Field Service Europe conference held in Amsterdam, and I was pleased to receive his invite to connect over a coffee at the event to gain his perspective of how companies such as UPS can help field service companies overcome the perennial challenge of cumbersome and ineffective parts management and logistics.

“There are a couple of key trends as we see it,” Helsen commented when asked on why so many companies seemed to struggle getting spare parts into the hands of their engineers, or even in some cases just delivering parts to their customers.

“Firstly, we are seeing a large number of companies telling us that their customers are demanding better aftermarket solutions from them, yet when we spoke to those exact same companies they were not treating the aftermarket side of their business as a priority.”

“In fact, 78% of companies stated that effective spare parts management and delivery was highly sought after by their customers but only 12% were treating this area as a priority, so there is clearly a disconnect,” he adds.

 

Having spent time further investigating this disconnect Helsen believes that the causes are the pragmatic results of a number external pressures on field service organisations.

He identifies the challenges of recruiting, training and maintaining field engineers, who are themselves working on ever more complicated devices, as a key reason why companies naturally tend to push their focus, and indeed their infrastructure towards what he describes as ‘simply getting their guys out on the road.’ As such, parts management is often the neglected cousin.

However, this approach, whilst clearly being endemic to our industry is one of purest folly. In his presentation, given a little earlier in the day, Helsen went through a number of case studies highlighting how paying such little heed to the delivery of parts coukld have a dramatic knock on effect when it comes to the performance of field engineers.

Discussing how they had worked with Snap-On in the UK he explained; “They had 400 engineers and up until we began working with them those engineers would get their goods delivered at home. So whilst they were scheduled to start work at 8am, they would be waiting in between 8 and 10am.”

“The solution that we offered them was ‘you know which customers in the day you know you are going to help so we can redirect those packages so you don’t have to wait at home’. The packages will then be delivered to the closest proximity of that customer - which is typically between 5 and 10 km away maximum.”

The UPS solution also allows the technicians to pick up from locations such as petrol stations and newsagents which expands the available working hours adding additional flexibility (which can be a big benefit to customers and engineers alike) plus UPS also provide a dedicated app which allows for parts tracking but also allows engineers to redirect packages in real time.

One of the whole premises of modern day mobile workforce scheduling is that delays are always likely to happen so changes need to be made dynamically to re-optimise the day. By giving field technicians a means to also adapt the collection of any parts they need in reflection of such changes is a vital tool that should be welcomed with open arms by field service companies.

 

In fact, it could even be argued that seeing as parts should really be more easily managed than people, it’s incredible that such solutions are only now beginning to become part of the fabric of field service management.

For me, it seems that the biggest failing we have all undertaken - practitioners, vendors and media alike, is to treat parts management and service logistics as a separate entity to workforce management. Admittedly there are software platforms that incorporate parts management alongside FSM tools, Astea comes to mind as one solution that offers such a solution, but even then how closely aligned is it to the actual delivery of parts?

How many field service companies have fully integrated parts handling and delivery into their mobile workforce management systems?

Yet the benefits of doing so are clearly vast.

As Holden explains “If you look at the time savings in the magnitude of saving 80 minutes a day and multiply it by the number of engineers they have, this is a saving of anywhere between 2 and 6% of the total staffing of their engineers.”

“Linking back to the fact that many companies have a shortage of engineers [due to the issues around recruitment, training and retention mentioned earlier] then such a saving can go some way to overcoming that because they are able to do more with the same amount of engineers.”

 

Indeed, as I talk to Helsen, I find myself nodding in agreement as not only does his argument very easily stack up, but it’s almost a word for word a repetition of the arguments put forward by the scheduling engine providers.

Arguments which by now most in the field service industry are very well versed in to the point that they’re universally accepted as common sense.

The technology is available, and essentially the argument has already been won by the workforce scheduling vendors - even many SMBs now utilise some form of workforce optimisation, because the R.O.I is clear to see.

It seems the next easy win for field service companies looking to improve efficiency margins is quite simple - revisit your parts management and service logistics chain and put the same emphasis on getting the right parts to the right place at the right time as you do getting engineers - surely it’s about time we were able to get parts in the right place as well as we can people?

 

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Resource Type: White Paper
Published by:  Astea
Title: Outsourcing Field Service

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Synopsis:

Outsourcing part (or all) of a company’s field service operations is not a new concept; service organisations have frequently turned to third-party providers or independent contractors to help meet seasonal demand or provide coverage in far-flung geographic areas.

But the conversation around outsourcing is changing. Instead of simply handing off work that a company can’t perform (or doesn’t want to perform), organisations are approaching the process from a partnership perspective, and searching for partners that can help meet or exceed customer experience expectations.

This White Paper published by Astea takes a look at the key points for consideration for companies looking to get the most out of their outsourced service delivery. The white paper includes sections on:

• What’s driving the need for outsourcing?
• Why technology is the key to successful outsourcing
• What is the changing mix of outsourcing partners field service companies need to be aware of?

Overview:

This evolving view of outsourcing has also made it critical for service organisations to maintain more control over the customer experience and increase their visibility into outsourced service processes. Extending the service chain to outside providers doesn’t have to result in a loss of visibility into technician and customer activities.

Providing technicians and partners with the right technology to capture customer, product, equipment, and work order information—along with the ability to transfer that data to the primary service organisation—can result in a better connected service network. Field service organisations (FSOs) also have more options available when it comes to structuring their outsourcing relationships, from traditional agreements where third parties agree to complete a set number of work orders, to more integrated scenarios where the third-party provider becomes a true extension of the service organisation and its’ brand

What’s Driving the Need for Outsourcing?

Companies are leaning harder on their service organisations for decreased costs, increased revenues and competitive advantage. Service organisations have turned to outsourcing to increase geographic coverage, improve profitability, reduce labor costs, and to improve workforce flexibility.

At the same time, there is higher demand for service and a shrinking pool of available technicians.

According to research from The Service Council, 55% of service companies reported an increase in total field service activity in 2015, despite the increase in the use of remote service and self-service capabilities.

A Changing Mix of Outsourcing Partners?

Not surprisingly, the majority of service companies (76% according to The Service Council) are already having work done by third parties. For those that are leveraging outsourcing, third party providers are performing roughly 32% of work assignments on average.

Asked what their top reasons were for outsourcing, 63% of respondents said they wanted to increase their overall coverage, while 56% wanted to increase flexibility in order to meet demand fluctuations. Service organisations also outsource to reduce their labor costs (44%) and increase availability (29%). So while there are cost savings to be had through outsourcing, most service companies are trying to improve their ability to meet customer demand.

Connectivity is King

When choosing an outsourcing partner, service organisations generally look at a number of important factors, including presence in the regions/areas where service is needed; the ability to complete specific types of work (including product or industry certifications); performance in key performance metrics; and customer feedback regarding service work.

Partners should provide consistent, quality service. This can be difficult to maintain if the right controls are not put into place. Service organisations often complaint about a loss of service quality when outsourcing work, so it is critical to establish ways to track processes and controls throughout the service supply chain.

Technology: The Key to Successful Outsourcing

As stated above, successfully managing outsourced service requires visibility and connectivity, and an investment in field service automation technology that can link both internal and external resources in the service network seamlessly. Successful outsourcing also requires a different approach to working with third-party service companies.[/unordered_list]

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This great infographic from the team at Astea covers some of the key challenges and some top tips for ensuring any outsourced field service operations continue to uphold your brand standards and ensure your customer satisfaction levels remain high.

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Want to know more? Field service professionals can access an accompanying white paper "Outsourcing Field Service" after claiming their free subscription to Field Service News!

Click here to subscribe and get the white paper sent to your inbox now!

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