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There is no standardised way of getting spare parts to engineers and most FM firms use a variety of different distribution methods depending on the site, the spare, the location and the client. As a result, engineers spend more time looking for spare parts rather than fixing plant. More stock is usually ordered than needed and is often more costly due to purchasing models. The knock-on effect further reduces tight margins and customers’ SLAs are missed incurring penalties. But, many procurement departments within FM service providers often consider the problem too tough to tackle.

 

“We were surprised at how decentralised the FM industry is,” remarked Stuart Miller, co-founder and CEO, ByBox.“The commonality we found across the sector was the disruption caused by engineers purchasing their own stock. This behaviour - albeit born out of necessity – not only effects engineer efficiency but the entire supply chain, budgets and relationships with other departments such as procurement and finance. Better use of data and distribution methods, will improve SKU optimisation and engineer efficiency as well as streamline internal processes and reduce overheads.” 

 

 

• Centralising procurement and distribution methods of M&E spares;
• Greater reliability and proactivity from the supply chain to be able to source parts from one location before the day starts;
• More standardisation of assets and parts within buildings including architects, specifiers andconstruction firms; stopping the installation of systems manufactured / maintained by one-man bands where any spares come from a single source supplier;

• The ability to store more critical spares in a fixed location close to or on site;
• Better use of CAFM systems to manage inventory at site level, improving the use of data to better forecast break fixes / predictive-based maintenance.

 

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Brexit fatigue’ may be sweeping across the European continent but for those of us involved in critical supply chains, now is not the time to put our heads in the sand. The network nature of international supply chains means we may all be reliant on the least-prepared organisation, as ByBox’s Simon Fahie, explains. 


There’s no escaping the fact that field service can be a lonely industry. Ask the engineer battling torrential rain to repair a wind turbine. Or the manager greeted with blank stares at dinner parties when asked to explain his job. With mobile engineering teams working in often remote locations, and a high number of lone workers, it can feel like there are limited opportunities for collaboration within field service.

But with Brexit around the corner, now is the time when field service operators must work together – not just to avoid problems, but also to get ahead. While the UK political climate remains highly uncertain, ByBox has shared practical tips with customers to help prepare for the ‘worst case scenario’ - No Deal.

A ‘Hard Brexit’ could mean that businesses which currently move parts freely within the EU, including the UK, will find themselves becoming importers and exporters between the UK and the EU.

An obvious statement perhaps, but several of the companies we have been working with will find it a shock to implement not only the existing rules, but also additional new procedures to manage No Deal.

And herein lies the real rub - under new customs rules, if one company fails to comply, it could cause delays to the stock of all businesses within the same consignment.  The smartest businesses recognise that ‘one issue affects all’ within Field Service; and that by and large they do not compete supply chain against supply chain.

 

"Advanced businesses view Brexit as an opportunity to take stock and think about how they can add value..."

By preparing for new import and export rules now they’re protecting not only their own businesses, but the resilience of the whole field service sector. Advanced businesses also view Brexit as an opportunity to take stock and think about how they can add value after Brexit and get ahead in a new trading environment.

The most common themes are:

Use of technology
An increasing number of  firms are looking to digitise processes around distribution, engineer productivity and inventory. With ever-more stringent SLAs and cost pressures, there just isn’t room for inefficiencies or delays in responding to disruptions

Increased forward stocking
In some industries where the potential consequences of delays are not acceptable, EG medical technology, we’ve seen an increase in firms using micro Forward Stock Locations (FSLs) – placing critical items in App-Lockers at the service sites where they’re needed, to protect first-time fix rates

Third party specialists
Many companies are turning to third parties to manage complexities around cross border transport and distribution. For example, our strategic partners such as Bespoke Distribution Aviation (BDA) – already have established transport channels, a customs clearance approach and brokers.

Two years on, it’s easy to experience ‘Brexit fatigue’ – but the burden can be significantly reduced if field service companies realise they’re not alone, and help each other through it.

Simon Fahie is Managing Director at ByBox.

Simon Fahie, Managing Director - Global Technologies, at ByBox reflects on a busy final quarter for the year, what the big challenges for 2019 will be and how we can overcome them...

Judging by the packed conference halls I’ve seen across the world this quarter, I think it’s fair to say that Winter 2018 is ‘events season’ for the global field service industry.

I was among the thousands of professionals who travelled to attend flagship conferences – all connected by a ‘need to know’ the latest developments within our sector.

But, as I heard tales of pioneering innovations and technologies at, for example, exhibitions in the USA, and a user group event in the UK, I was struck that the processes behind our work are just as important as the technology which supports it.

Hearing about the increasing pressures and challenges affecting the field service supply chain, and the different ways organisations are seeking to address them, triggered a train of thought in my mind around the power of lean thinking.

The principles of Lean are clear. It’s a systematic way of checking every process to find and extinguish waste. By eradicating unnecessary spend, time and resources, organisations can focus on adding value to customers.

And this one methodology is so effective, it can be used equally well within a wide range of businesses, from office cleaning, to automotive manufacturing, or the delivery of complex highway schemes. All three of these tasks have been analysed, broken down into steps, designed and redesigned to be as Lean as possible.

For decades, service companies have seen the value in similarly systematically removing unnecessary delays, materials, labour and costs from their processes. And yet, as the events began to wrap up, it became obvious to me that Lean thinking could have played a part in the case studies I had presented, and the networking conversations I had enjoyed.

I heard over and over again that the pain points are there. For example, getting the right service part to the right place at the right time is so important that, ironically, some businesses seem wary of making strategic changes. We heard stories about excessive inventory or significant costs related to same-day distribution being left unchallenged because ‘it works’. We know from analysis carried out recently for one organisation that 65% of items sent to site using same-day transport were returned by the engineer as good stock.

It doesn’t take much effort to start finding waste in that process, but what are the seven types of waste in Lean, and how might field service industries start finding some waste to eliminate?

Based on my experience at 2018 field service events, here are some examples, and how our customers are going about eliminating them:

 

Transport: Unnecessary movement of people or parts between processes

We saw one company save 640,000 miles of driving by delivering parts to app lockers at service sites, instead of using dispersed forward stocking locations. (FSLs)

 

Inventory: Excess raw material or finished parts 

Another firm had more than £1 million-worth of duplicated stock sitting in repair engineers’ vans.

The company cut spend significantly, by storing items specifically required by each location in secure on-site lockers

 

Waiting: People or parts waiting for the next step of a process

45 minutes per day, per engineer – that was the average waiting time saved by one organisation when it replaced PUDO collections with public locker collections.

 

Motions: Unnecessary movement of people or parts within a process

In our experience, the most advanced firms enable engineers to order parts for direct delivery, using a mobile app. This eliminates the unnecessary and inefficient movement of thousands of parts to and from warehouses, and can even enable firms to remove entire FSLs from their supply chains.

 

Rework: Correction or repetition of a process 

Forward-thinking firms also use mobile apps to assign condition codes for parts which need to be returned. This allows items to be directly routed to repairers, rather than return to the warehouse for evaluation. We’ve seen this contribute to a 40% reduction in total inventory for some firms, as well as a reduction in processing resources.

 

Overproduction: producing sooner or in greater quantities than customer demand

We saw one corporation reduce duplicate inventory by consolidating a UK stock-holding into a European warehouse. Delivery lead times and customer service levels were maintained by exploiting scheduled flights, and pre-8am distribution to lockers.

 

Over processing: Processing beyond standard required

Implementing a dedicated delivery point at a secure site reduced same-day transportation costs by 80% for one customer. In this use case same-day delivery was only used to ensure early next day availability.

 

It’s important to remember that the benefits of Lean thinking go above and beyond reducing waste, and into adding value to customers. For example, eliminating unnecessary movements often reduces overall lead-times -which in turn reduces risks to SLA compliance. And reducing transportation waste further supports carbon reduction targets.

I don’t pretend to be an expert in Lean thinking, however, as we seek to meet ever tighter service level requirements while simultaneously reducing costs these examples serve as reminders that there is plenty of waste to find if we go looking for it.

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Simon Fahie is Managing Director, Global Technologies for ByBox

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In a recent episode of The Field Service Podcast, Kris Oldland, Editor-in-Chief, Field Service News spoke with Simon Fahie, Managing Director of ByBox, and in what was a wide-ranging discussion the two touched on a number of key topics affecting field service organisations today...

Our industry is evolving rapidly. It seems like only yesterday when I first returned to the service sector and began writing about the key trends within field service, at the time for the now sadly departed Service Management magazine. In fact, that was some six or seven years ago now and crikey an awful lot has changed in that time.

Back then the over-riding discussions within the sector were around the practicalities and benefits of moving field service from its traditional position as a cost centre to becoming a profit centre.

Fast forward to today and the concept of field service as a core revenue-generating part of the business has become firnly established. Indeed, as we have covered extensively in Field Service News, more and more companies are becoming increasingly focused on delivering advanced services, a strategic shift in thinking that has become known as servitization.

Yet, whilst servitization promises to hold the key to increased profits, a greater share of customer wallets and deeper, longer term contracts that offer far greater financial stability, it is not a particularly easy nut to crack.

Perhaps the biggest shift in thinking from traditional break fix based centric service agreements and their servitized equivalent is the move away from service level agreements to guarantees of uptime. In an era of IoT and connected assets, the move towards predictive maintenance that such an approach requires could be deemed relatively easy to establish once the right processes and technologies are put in place.

The theory is relatively straight-forward. The asset feeds back real-time data, when it falls out of set acceptable parameters that have been determined to be indicators of probable forthcoming failure an engineer is dispatched to fix the fault ahead of the asset going down - giving the end customer a continuous service whilst allowing the service provider to schedule their field service operations far more efficiently.

 

"Whilst servitization promises to hold the key to increased profits, a greater share of customer wallets and deeper, longer-term contracts that offer far greater financial stability, it is not a particularly easy nut to crack..."

 

An obvious win-win all round - easy as that.

However, one of the obvious spanners that can be thrown into the works is the parts logistics aspect fo the equation. Getting the right engineer to the right place, at the right time has been the field service manager’s mantra for as long as I can remember. However, it all becomes a moot point if the engineer hasn’t got access to the right parts.

And in an age of increasing congestion, which can put a huge strain on service logistics - getting the right parts to an engineer can cause a huge problem for field service delivery, and when it comes to advanced services this issue becomes even more significant.

“I look at servitization and for me, it really exposes some of the weaknesses in a supply chain or the process of getting parts to the engineer,” explains Simon Fahie, Manging Director, ByBox when he joined me for a recent episode of the Field Service Podacst.

“Certainly, we are seeing conversations that are saying yesterday we could do a next day fix, now we are able to do a four hour fix. But it is not just fix-times that are open to discussion. Obviously, in a servitization scenario, you have lost revenues that are at stake,” he continued

“If the asset you are supplying is not working not only do you have a disgrunteled customer, you also have no revenues coming thorugh. In fact, in some instances, not being able to provide a fix stops the use of consumables as well.”

“So what we are seing as a growing trend is the need to position inventory actually on site, or very, very close, to be able to provide the very short fixtime that servitized contracts require.”

And this is exactly where ByBox come into the equation - with a network of lockers across the UK and Europe they offer an effective means of acheiving this - in the UK for example, Fahie states that most of their customers will have a locker within just a few miles of their location.

 

"If the asset you are supplying is not working not only do you have a disgruntled customer, you also have no revenues coming through..."

 

Yet their is more to the solution than just conveniently place lockers.

“The challenge is how do you control the parts?” Fahie asks retorically.

“How do you give secure access to them? How do you know that they are there? How do you know that they’ve gone out of stock? You can’t just hand over a cardboard box of parts and say leave that by the machine for the engineer when he comes. It is a lot more challenging than that.”

ByBox’s solution to these challenges is in many senses relatively simple, yet is hugely effective in overcoming exactly these problems. The lockers themselves are enabled with secure bluetooth functionality for delivering and removing parts which allows for the movement of parts to be logged - providing essentially visibility into the parts management process, which in turn opens up the doors to even greater streamlining possibilities as well.

“What this enables is the better efficiency of the field workforce,” explains Fahie.

“If you think about the scheduling challenge if a field worker has gone and got a part at 9 am they are then committed to that job that requires them and that part. However, if the part is available and can be collected at any time by anyone with the appropriate authorisation, the efficiency of the scheduling could be increased.”

“If we add into that mix the rise of the flexible or contingent workforce, now we are trying to get a part to a place that may be able difficult to deliver to, now we can have a part picked up and delivered by a person that you have never met before and may never meet again - but that is where the felxibility of the app base dcontrol comes into play - and it could lead to some really interesting new ways of improving the service supply chain that simply couldn’t have existed before.”

Indeed, given the increasing burden being felt within service logistics due to things like pedestrianisation of city centres and ever more congested roads, for servitization to thrive as it should, it is exactly such innovative ideas that field service companies will need to embrace.

Our industry is evolving rapidly, but fortunately, it appears we have the tools to hand to adapt with it.

 

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Claudine Mosseri outlines how in an age of increasing consumer power it is critical field service engineers are able meet SLAs and explains how technology in service logistics is making that happen...

News headlines would suggest that the high street is fast heading to a retail graveyard, with longstanding titans like Debenhams and House of Fraser the latest to face tough times.

Yet only after a period of turmoil, only one in 10 shops is vacant.

Factors such as the need to try before you buy, instant gratification and the convenience of returns are just a few of the factors that keep consumers returning to the high street.

The most successful stores are not only driving e-commerce, but also optimising the in-store experience by implementing new technologies and interactive features for customers.

We are starting to see the emergence of brand leaders such as Amazon Go, whose model is being mimicked by Tesco in its cashless store trial.

Whistl also discovered that over half of shoppers prefer unmanned tills to deal with cashiers, as it’s faster. As retailers become ever bolder in their use of tech, they rely more heavily on those integrated devices working flawlessly.

But as the old adage says, the best-laid plans often go awry. At some point, technology will fail, whether it’s a shopper-facing device or the datacentres serving them. When this happens, problems result for both consumer and retailer.

 

"ByBox recently surveyed 1,000 shoppers, two-thirds reported they had experienced problems and breakdowns in-store. For one-third of these dissatisfied consumers, this meant they were unable to complete their purchase at all..."

 

ByBox recently surveyed 1,000 shoppers, two thirds reported they had experienced problems and breakdowns in-store. For one third of these dissatisfied consumers, this meant they were unable to complete their purchase at all.

What was designed to be a positive customer experience can quickly turn into a negative with long term consequences when the technology fails.

Over a third (38%) of shoppers told us they felt angry or irritated because of these breakdowns.

Over a fifth complained to store staff about nonfunctional devices. And for a very angry one in 10, their opinions of the store were damaged in the long term.

With revenue and reputation at risk, it is vital that retailers implement strategies to limit risk and ensure rapid response times when the inevitable does happen and their tech lets them down.

It starts with making sure service providers are equipped to manage speedy same-day fixes.

Ensuring this needs to be the norm when it comes to setting service-level agreements.

There are new technologies that can support this requirement. For example, creating micro-FSLs (forward stock locations) by combining sophisticated software and smart locker technology, means repair items can be prepositioned using overnight or through the day deliveries. Shortening the mean time to repair (MTTR) can also limit the risk to retailers.

The world of retail is moving at a swift technological pace – but this isn’t the only sector where the support services for connected devices must move with the times.

If networks and other background tech systems fail the entire customer experience is interrupted, and it’s often the front-end business which bears the brunt of customer dissatisfaction and lost revenue.

Modern retail is all about convenience and ease for the consumer, delivering the fastest way to shop in the most seamless and engaging way.

As we see one ‘rush’ to improve the shopping experience by implementing new technologies, retailers should prepare for another – maintaining these innovations.

This will keep the high street alive and kicking.

 

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Claudine Mosseri, is General Manager, ByBox 

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Never miss an episode - subscribe to The Field Service Podcast on iTunes @ http://fs-ne.ws/2mpd30mmzFD

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More features about ByBox including the investment by Fransisco partners discussed in the podcast can be found @ http://fieldservicenews.com/?s=ByBox

 

ByBox, specialists in smart locker technology and field service solutions, today announced a strategic investment from Francisco Partners, the firm who acquired ClickSoftware in 2015 and who currently values ByBox at £221 million.

The private equity firm backs ambitious technology-enabled businesses and will support ByBox’s expansion of its UK infrastructure and global deployment of its ‘Konnect’ app-locker solution.

“ByBox is a great company with a clear and increasingly critical proposition. Its success comes down to great leadership, outstanding customer service and relentless development of its solutions. Listening closely to customers and really understanding market trends have made ByBox an extremely investible business,” remarked Deep Shah, co-president, Francisco Partners.

Working with Francisco Partners will enable ByBox to accelerate the deployment of its ground-breaking app-locker technology both in the UK and across key global markets. ByBox’s app-lockers systematically address the core challenges of the field service supply chain. This should be welcome news to ByBox’s customers, who grapple constantly with how to permanently extinguish unnecessary costs.

[quote float="left"]We’re excited to help ByBox support its existing UK customer base with new offerings, accelerate its international expansion and penetrate new industries.[/quote]Petri Oksanen, partner, Francisco Partners commented, “We’re excited to help ByBox support its existing UK customer base with new offerings, accelerate its international expansion and penetrate new industries. Our growth experience will complement ByBox’s inventive nature and intelligent solution set in continuing to drive real customer value into the global field service market.”

The transaction marks an exit for LDC, a mid-market private equity investor. LDC originally provided £37.5 million of development capital in 2016. In the last two years, the business has grown significantly and doubled in value.

“LDC are insightful and supportive investors who have worked closely with the ByBox team to formulate and execute a successful strategy. The next phase of this strategy is characterised by ongoing investment in our UK business as well as driving our international expansion. FP has a tremendous track record and will be ideal partners to help us deliver this growth,” commented Stuart Miller, co-founder and CEO of ByBox.

“ByBox is a great example of a company with a winning combination of innovative problem-solving technology and fantastic customer service. Under the impeccable leadership of Stuart and his team, ByBox has grown to become a real market leader in its field, two years ahead of plan,” said Alastair Weinel, investment director at LDC in the South. “Together, we’ve generated significant value and have opened the door for even further expansion. We know this ambitious management team isn’t finished yet and wish the team every success in the next phase of their journey.”

“The world is increasingly dependent on technology. When the tech fails, the world stops working. So field service has never been more critical – which is why everybody at ByBox is so excited to be an increasingly critical part of the future solution set. The backing from FP allows us to go faster and to deliver the next phase of our ambition for our customers,” concluded Miller.

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Inner city congestion has long been a major cause for consternation for field service organisations, but with environmental factors such as air pollution becoming increasingly high on the political agenda of many countries across Europe and beyond, additional regulatory challenges are fast adding to the issue as Claudine Mosseri, General Manager, Field Services, ByBox explains...

The issue of air pollution in the UK is high on the political and environmental agenda, following a High Court ruling in February that the levels in many UK cities are ‘unlawful’. Given increasing pressure to do more to tackle this issue, along with rising inner-city congestion, councils are looking at new initiatives to cut traffic. These include calls for congestion charges, zero emissions zones and even a rumoured cable car for Oxford.

The estimated cost of congestion in the UK is predicted to rise 63% by 2030, to a cost of £21bn. British roads are some of the most populated in Europe, with double the number of traffic hotspots than Germany and France.  The estimated cost of congestion in the UK is predicted to rise 63% by 2030, to a cost of £21bn. London, of course, is top of the congested heap. Its weight of traffic is set to also increase by 60% by 2031, according to Transport for London (TfL).

A major contributing factor is the number of delivery vehicles on the roads during peak times. TfL states a quarter of London’s traffic during the peak hours of 7-11am is freight. It’s easy to see why the numbers of delivery vans on the roads are increasing. The number of workplace deliveries being ordered by people who cannot accommodate home delivery is rising. Expectations when it comes to next day and even same day delivery of items are high. And according to TfL, van space itself is often underutilised, with many shipping fresh air and making multiple stops around the capital. In response, the London transport organisation advocates greater delivery consolidation – ensuring more space, in fewer vehicles, is used more effectively.

While TfL has focused on delivery consolidation, there are also options around changing delivery times themselves. This would spread out the weight of traffic and avoid peak congestion hours. After all, when roads are busy, it becomes a vicious cycle of more delivery vehicles being stuck in traffic, further reducing their efficiency in getting from drop-off to drop-off. It seems unlikely that consumer demands about quick and convenient delivery will decline – and of course as businesses and cities themselves become ever more dependent on technology due to the integration of smart ‘Internet of Things’ devices and other automation, there will also be a rising need in urban areas for quick provision of replacement parts and engineers to provide fast and efficient fixes. Without exploring different solutions for getting these parts from point A to point B, this could easily lead to more vehicles on the road, simply trying to minimise the impact of device downtime.

Until recently, delivering during off-peak times was not possible – where would be open at two in the morning to take delivery?Until recently, delivering during off-peak times was not possible – where would be open at two in the morning to take delivery?

Yet now, there are networks of consumer click and collect locations in newsagents, stores and locker banks all over urban areas, many of them accessible 24/7. Similar solutions for part delivery have been used across the country for years to increase efficiencies in the field service supply chain. These 24/7 accessible, fixed point delivery locations not only reduce the number of stops delivery vehicles make but also reduce the numbers of vehicles on the road in city centres. Using this kind of point-to-point delivery planning with lockers, located in convenient, edge of city locations, essential parts are easy to access with minimal environmental impact and maximum speed.

Delivery to these locations overnight reduces failed deliveries, allows for the more efficient use of vehicle capacity, and doesn’t add to the existing congestion problem. For businesses with a high frequency for these deliveries, or where the delivered parts are especially time-sensitive or high value, hosting their own secure drop-off location could well prove a significant boon in timely delivery of essential items.

Some believe that clogged and congested cities are a problem that will only get worse. At ByBox we believe no problem is insurmountable.With predictive analytics on stock levels and given increasingly ‘smart’ devices communicating their status back to businesses, it is even possible for these holding stock and collection points to house particularly critical parts in advance of breakdowns, so they are to hand well before they are needed as well as being able to collect multiple items from one location at the same time.

Some believe that clogged and congested cities are a problem that will only get worse. At ByBox we believe no problem is insurmountable.

New thinking facilitated by technological innovations which can reduce transportation costs and optimise delivery routes can also help to tackle some of the issues around inner-city congestion and air pollution. By approaching the issues differently when it comes to vehicle use, drop-off and delivery schedules can answer on environmental necessities, the effective flow of traffic around urban areas, and the needs of demanding and always-on customers.

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