ARCHIVE FOR THE ‘parts-pricing-and-logistics’ CATEGORY

Paul Whitelam, VP of Product Marketing, ClickSoftware explains why service chain optimisation needn’t be as daunting as we might expect...

Every customer-centric business is ultimately measured by how it performs on the day of service delivery. But the day of service is just the last link in the chain of decisions made weeks or months in advance. And sometimes your best-laid plans don’t play out as expected. Disruptions in the schedule are bound to happen – customers cancel, traffic conditions vary, and technicians call out sick.

So how can you possibly ensure your techs are at the right places at the right time, while increasing productivity, delivering positive customer experiences, and keeping costs down—even when managing the unexpected?

For one, you must consider the entire service chain, or everything that occurs before, on, and after the day of service. Let’s dive deeper into what this means.

Service Chain Optimisation(SCO)

The modern-day customer has more power than ever before. With companies like Amazon and Uber setting the bar for customer experience, customers today demand and expect reliable, flexible, and almost flawless service. And that’s not impossible to deliver.

In 1996, ClickSoftware coined the term “Service Chain Optimisation”(SCO) to define a decision making process for ensuring an efficient day of service. It considers the full life-cycle of service demand, from the early stages of forecasting and planning, through scheduling and dispatching, to execution and analysis. And it’s meant to help you find the optimal balance between business goals and customer expectations.

It’s important to understand that all the steps in SCO are interrelated, and that missing steps means service delivery could sufferIt’s important to understand that all the steps in SCO are interrelated, and that missing steps means service delivery could suffer. Let’s say a dispatcher jumps right into scheduling without any forecasting or planning. They might schedule too many technicians, which is expensive and creates excessive idle time. Or they could schedule too few techs, which would mean slower response times and frustrated customers. Likewise, without proper planning, a tech might find that he or she is without the right parts to complete a job – again, leaving the customer upset.

It’s not hard to understand why it’s important to consider all links in the service chain. Let’s break it down into the three major stages:

The Day Before: Planning

Ultimately the goal of SCO is to ensure your technicians are at the right place at the right time, fully prepared to meet customer demand. But as the service day is full of unpredictability and variation, success is derived from what happens in the planning stage.

This stage involves predicting to the best of your ability the expected demand on a particular day or week. And it’s where you determine the optimal amount of resources you’ll need to complete every service call, without over or underestimating. Historical data (or anything gathered from the analysis stage) can help you make the right decisions.

The Day of: Execution

The day of service is where everything happens – from scheduling and dispatch, to fixing the customer’s problem and following up with a survey. Though a schedule may have been created days or weeks in advance, not all appointments will be honoured. There will likely be customer cancellations, traffic delays, or emergency jobs, which will require real-time management.

As noted, the success of this day depends on the planning ahead. You may not know exactly what’s going to happen on the day of service, but you better be prepared for anything that comes at you. This stage relies heavily on maximsing your time and responding effectively to changes. So it helps to have a flexible schedule to reshuffle as new jobs appear.

The Day After: Analysis

We all know that service doesn’t end after the execution. In the final stage of the service chain, field service providers must look back on how the day went and whether goals were met. And if they weren’t, what is it that kept them from achieving their goals? How did customers feel about the job done?

We all know that service doesn’t end after the execution. Because you can’t improve what you don’t measure, track your performance and use customer feedback to continually improve quality. Although it’s called the service chain, it might be more accurate to think of it as a continuous cycle, where you feed the results of your analysis back to the forecasting and planning for subsequent visits.

Use artificial intelligence to your advantage

You might be wondering how a mere human can possibly optimise every step in the chain, make accurate predictions, and quickly reshuffle the schedule when something comes up. Fortunately, with the power of artificial intelligence (AI) and machine learning, you can automatically optimise schedules and make accurate predictions in seconds.

Here’s an example: with a mobile workforce it’s important to reduce idle time and keep technicians moving so they can complete more jobs and make as many customers happy as possible. AI-driven technology can take into account both historical and real-time traffic data to quickly choose the best travel routes to customer sites. By avoiding traffic, techs can complete the job faster and move on to the next.

Or consider when there are schedule disruptions. Instead of leaving white space when a customer cancels, the AI-driven technology can account for technician locations and automatically dispatch them to another nearby job. Likewise, to make room for emergency jobs, the system can take SLA requirements into consideration and reshuffle low priority tasks to make room.

Service Chain Optimisation might seem complicated, but with the right technology, proper planning, and analysis, it’s possible to deliver near flawless service to your customers.

Be social and share

New research reveals that 86% of companies now expect on-site post-sales services from industrial suppliers. UPS customer examples show how a new supply chain setup can improve technicians’ efficiency by up to 30 min per service and strongly improve the cash conversion cycle. Jean-François Mathieu, Marketing Manager, UPS Europe explains more...

The UPS Industrial Buying Dynamics Study is one of the few detailed studies available on the relationship between industrial buyers and suppliers.

It is a study that provides a unique understanding of how industrial buyers identify suppliers such as industrial distributors, manufacturers and e-marketplaces, their satisfaction with existing suppliers and their propensity to change suppliers in search of improved value and service.

Interviews were carried out with purchasing professionals and the study provides a detailed view across countries and sectors and one of the key learnings of this year’s study is that industrial buyer expectations of post-sales support are increasing across Europe.

In 2015, 78% of survey respondents said they expected on-site post-sales services from industrial suppliers; in 2017 that has risen to 86%In 2015, 78% of survey respondents said they expected on-site post-sales services from industrial suppliers; in 2017 that has risen to 86%, driven particularly by significant rises in expectations amongst UK and German respondents.

In fact, European expectations of post-sales support are now running well ahead of expectations in the US where 76% expect on-site support, although in China a remarkable 99% of industrial buyers expect on-site support.

In a world where sources of industrial supply have proliferated, the service offer from suppliers has become one of the most critical differentiators between competitors. Indeed, the UPS 2017 Industrial Buying Dynamics Study shows that while an effective returns process is the most important post-sales service, buyers now also expect a much wider range of services, with on-site maintenance and repairs cited as being important to them by over 70% of respondents.

This necessity of on-site maintenance and returns brings about logistics challenges for suppliers that may go beyond their traditional operational skill-set.

The survey shows that 60% of buyers typically need delivery for all orders within 48 hours or less, with little if any differences in figures cited appearing between respondents from disparate sectors.

The survey shows that 60% of buyers typically need delivery for all orders within 48 hours or less, with little if any differences in figures cited appearing between respondents from disparate sectors Over half of buyers need on-site service at least every three months, and nearly a fifth of buyers say they need on-site service at least every month. However, only a quarter of buyers say they actually receive on-site service within 24 hours, although that figure does rise significantly to 80% when we focus on a response time of 48 hours.

One company who have recently had to acknowledge this problem and find a means to overcome the challenge was Sealed Air, a leading producer of materials and manufacturing equipment for food safety, facility hygiene and packaging was recently facing challenges managing on-site service in Europe for their TASKI® floor cleaning machines.

They were managing their own supply chain through a network of 19 warehouses, supporting over 500 field service engineers providing aftersales services.

However, they had found that their service response time was continually beginning to slip below their buyer’s expectations – an issue that the senior management team at Sealed Air had quite rightly identified as one that was set to be costly both in terms of top line revenue, brand reputation and bottom line profit.

The solution that they put in place was to work with UPS in combining UPS Express shipping services with the UPS Access Point™ network to deliver parts to their field service engineers. With wait times for parts delivery massively reduced by utilising this approach, Sealed Air found that they were able to significantly improve their response times – which in turn improved their ability to meet customer expectations whilst simultaneously reducing costs by driving efficiency.

The UPS Access Point is a dropbox/locker network that features over 15,000 locations across Europe where buyers can collect or drop off parcels.

Meanwhile, UPS was able to consolidate the company’s network of warehouses into a single, centralised distribution centre. The new service infrastructure allows field technicians to order a part up until 1pm, and have it in hand early the next morning.

Field Service Engineers across Europe are typically able to find a UPS Access Point location within a few kilometres of their home or buyer, meaning that the time spent by engineers collecting spare parts has been reduced by approximately 30 minutes per service order. If each engineer was to process just one order per day then that would be an instant time saving of 250 work hours a day.

That equates to the same as adding in over 30 more engineers to the workforce!

Simply working smarter has allowed Sealed Air engineers to complete more service trips on a weekly basis, reduce the number of warehouses and inventory levels and to bring their post sales offering back on track – something which is vital for any organisation that wishes to remain competitive in this ever increasingly service-centric world.

Be social and share

The most successful logistics managers (and sleigh based delivery drivers) were likely those who could turn to technology to cope with the busiest (and most wonderful) time of the year writes Sergio Barata, General Manager EMEA, Telogis

During the recent holiday season whilst people up and down the country were purchasing piles of food, beverages and presents for their friends and families, spare a thought for those who were able to help make this period as the song goes the most wonderful time of the year.

For fleet managers, this represents one of the most challenging periods on the calendar.

Each year, we hear horror stories of traffic jams and huge queues of HGVs and LCVs snaking for miles outside of distribution centres. We hear about angry customers waiting for their parcels and how it has ruined the holiday. With so many elements to juggle, how can fleet operators keep on top of everything?

Most importantly, how can they ensure their customers get all their present in time?

With research showing that more than half of fleet executives still use manual systems for everyday fleet management tasks, it’s no surprise that many fleets are struggling to cope with the increased holiday workload.

Technology is like Santa’s little helper for fleet and logistics managers, as it plays a vital role in helping to balance distribution centre schedules, driver timings and route traffic and ultimately keep everyone happy. For fleet operators who want to stay ahead of the competition, there’s no time to lose to adopt the latest tech.

Avoiding queues at customers or distribution centres

Long lines of vans and lorries parked outside depots and distribution centres can lead to angry locals – or even a visit from the police – and cause delays for anxious customers waiting for their packages. For fleet managers, it is vital to first look at their Service Level Agreements (SLAs) to establish what is expected of them, and then plan accordingly with the distribution centres in advance to map out the best timings for goods collection.

With this information, fleets can use a tech platform such as Mobile Resource Management (MRM) to plot out the details to spend less time idling in an endless queue. This allows for smoother and less stressful journeys, as well as happier customers.

 

Avoiding traffic jams with smarter route planning Even without the additional holiday traffic clogging up the roads, a study
earlier this year found that congestion in the UK’s major cities has created a 20 per cent decline in average vehicle speeds, resulting in a whopping 324.3 billion miles of delays altogether – and this is costing our economy around £9bn.

As a result, optimising routes to avoid traffic and achieve marginal gains is more important than ever. MRM provides managers with live analytics that allows them to plan out the best routes beforehand and establish which
driver is best placed to arrive at the desired destination the soonest, as well as being able to manage time slot deliveries. The technology can then track the vehicle’s location once it’s out on the road, and even re-route the driver at a moment’s notice if road conditions suddenly change.

With in the moment visibility over the status and location of each customer’s delivery, this not only means that drivers can take the most efficient routes, potentially reducing idling and fuel consumption, but also that managers are able to respond quickly and knowledgeably to customer questions if unexpected eventualities arise. This can ensure that customer satisfaction will
remain high even if unavoidable delays do occur.

Assisting in planning more effective schedules

Driver schedules can also be a real headache during the holiday season. Fleet and logistics managers constantly battle to make sure hours are allocated as efficiently as possible, and at the same time send the best-placed drivers to various different locations.

If not done properly, managers risk over-burdening some drivers, resulting in them clocking up hour after hour of overtime, while other drivers may remain under-utilised. Not only does unplanned overtime eat into margins, but drivers will become tired and overworked on top of all the stress of the busy holiday period.

With the DVSA suggesting it will clamp down on driver fatigue by issuing fines or infringement notices retrospectively, it has never been more important to get scheduling right. Tech platforms can monitor and analyse driver performance, analysing when drivers start their shifts, how many stops they have made, and what time they have completed their deliveries, helping to know drivers are where they should be at all times.

With this information at their fingertips, companies can easily make sure both their customers and their employees are kept happy. This saves a lot of stress for fleet managers who can be assured that everything is all under control.

 

As everyone was enjoying the holidays, the last thing anyone wanted was to be spending the next couple of weeks anxiously wondering where their deliveries are, and certainly no company wants to be responsible for dampening the festive cheer.

Fleet managers therefore must ensure that they are on top of their logistics as simply relying on outdated technology will no longer suffice.

They need something that is mobile and is able to scale as the business requires. Those with the right technology supporting them can not only increase their chances of getting meeting customers’ heightened expectations, they can manage costs, increase revenue and have a happy and prosperous holiday period.

 

---

 

Be social and share

Claudine Mosseri, General Manager, ByBox explains how the use of technology and Big Data has allowed field service to lower emissions and reduce environmental impact...

Simply type the word emissions into Google news, and it’s clear that the issue of what’s coming out of our exhausts has never been so high on the agenda. Obviously, this has a tremendous impact on those who move items and parts around the country daily.

Recent news about the number of vehicle fleets looking at shifting the proportions of their alternative fuel vehicles is just the tip of this iceberg. However, the use of technology and big data has allowed field service to lower emissions and reduce the environmental impact of their, and others’, businesses, beyond simply looking at the fuel sources of their engines.

Operating in the sector that we do, of course we are all aware of the simple fact that moving goods from A to B creates emissions, and the vehicles used in large supply chains are often among the worst polluters. Heavy good vehicles and vans produce, on average 7% of the UK’s overall carbon emissions.

With that being said, the investment in technology and the better use of data has allowed us to find cost and resource effective ways to send replacements. The world is becoming ever more reliant on technological automation, especially given Gartner’s recent prediction that 8.7 billion Internet of Things (IoT) devices will be installed by the end of this year. These connected devices and the data they produce are allowing business to pin point areas of improvement.

 

The industry’s environmental role goes well beyond head office commitments to carbon offsetting.

Our products, such as virtual warehouses, use data so that wherever your parts are, they can be accessed and moved to the right place. For example, in a busy field service supply chain, there will always be a significant amount of stock out in the field.

This might include good stock that an engineer has just picked up or it might also include returns which have just been taken off a customer site. This data tells you precisely what stock you have in the field and where it is. Clever stock systems, big data and tracking allow a logistics manager to raise an order, reroute and group together items, ultimately reducing congestion and reducing carbon emissions.

Away from cities, deliveries still require large vehicles, so to cut down on emissions, many are looking to instead limit their mileage. One approach involves investigating downtime data. For example, when replacing parts for a client, we spotted that typically, within a week of part A breaking and a replacement being issued, part B would also fail.

This allows us to be able to get our engineers to replace part A and part B simultaneously, which cuts down transport times, and ultimately reducing congestion due to fewer vehicles on the road.

 

ByBox has integrated technology and data to every part of its products, with Smart Boxes, our mobile applications, the use of our Thinventory™ platform and Stockonnect which has systematically allowed us to connect devices into our field services. With continuous changes like these occurring and influencing how we live our lives, there is a real demand on supply chains to ensure that when products or parts wear out or fail, they can be fixed or replaced quickly.

Of course, not all of these technological solutions will work for every business. Some face a lack of 24/7 access to their facilities, or have to factor in travel to remote locations. ByBox is lucky: point to point delivery is part of the DNA of the business, so we move the data, not the part.

However, by looking at the big picture and considering the influences of increasing automation on a number of different industries, it is clear that the field services sector has a bright and fascinating role to play in keeping businesses and devices running both effectively and environmentally.

 

---

 

Be social and share

In the first part of this feature, Tesseract’s Kevin McNally explored the importance of contract management and workforce scheduling within a field service management system. Now in the concluding part of this feature he looks at three other key elements of a modern FSM system...

[hr]

Want to know more? A white paper on this topic is available for Field Service News subscribers only - but if you are a Field Service Professional you may well qualify for a complimentary industry practitioner subscription!

Click here to apply for your subscription now and we’ll send you the white paper to your inbox now instantly as a thank you for your time!
[hr]

Mobile tools and communications: 

It is fair to say that the biggest revolution in field service has come from the rapid explosion in mobile computing power. Today’s smartphones are capable of greater computing tasks than even the laptops of just a few years back.

For the field service organisation this is fantastic as it puts information at the field service engineers finger tips, empowers them to spend far more time on maintenance and repair and far less on activities such as paper work and enables them to deliver a far more effective and impressive service experience for the customer.

[quote float="left"]The real key to a FSM solution is the ability to keep a number of differing business units all on the same page at once, [/quote]The real key to a FSM solution is the ability to keep a number of differing business units all on the same page at once, and the mobile aspect is the key to ensuring the field service engineers – perhaps the most vital cog in the service operation wheel, are kept up to date (and are keeping their colleagues updated about their own progress) whilst working remotely.

For the field service engineer, his FSM app is perhaps now the most important tool in his belt, but if it is cumbersome to use its benefits may well be underused and much of its true value lost. Therefore, for those seeking a new FSM solution the mobile app is a key area for scrutiny. If you are already working with an FSM system it is worth considering getting some feedback on this aspect of the mobile app from your engineers and taking this back to your FSM provider – a good systems partner will always value such feedback and often if there are areas where you feel the solution can be improved, these will likely be felt by other companies using the same solution, so such changes may well surface in the not too distant future in a new update.

Parts & Inventory Management: 

[quote]Part’s Management is a real fundamental piece of the puzzle that is overlooked by many companies – Kevin McNally, Tesseract[/quote]  

Parts and Inventory management is perhaps an area that in the past has not received the focus and attention that it requires. It has often been the mantra of field service organisations that they are aiming to the get the right engineer to the right job, at the right time. But that all becomes moot if the right engineer doesn’t have the right parts to hand as well. Consistently at industry conferences parts management remains a hot button and a common pain point.

One area where many companies get themselves caught out is by thinking that they can use a system such as a financial system that is designed at best for companies whose stock resides in static places such as warehouses and stores.

However, field service is far more dynamic than that, with parts moving back and forth and in and out of locations constantly each and every day.

In no time at all a company that isn’t using a system designed with field service in mind will soon find themselves having to find workarounds to make their system work, which ultimately will mean a far less accurate understanding of stock levels, which can only ever lead to unnecessary spending and a negative impact on the bottom line.

But there are other less obvious impacts poor stock management can have as well.

[quote float="right"]Field service is far more dynamic than that, with parts moving back and forth and in and out of locations constantly each and every day.[/quote]For instance, in such a set up stock realistically can usually only be written off once it has been invoiced. However, in the dynamic world of field service that is of course too late. It could be quite conceivable that an engineer visit could be scheduled with a customer based on a specific part being in stock but in fact whilst there is one of those parts remaining in the inventory, the reality could be that it has already been fitted but just not written off yet as the job hasn’t been invoiced.

For example, lets say an engineer who is onsite is unable to complete a first time fix, but is able to identify a faulty component and then order it whilst still with the customer - giving them a confirmed date for a second appointment when the needed maintenance can be undertaken.

This is a far more powerful and commanding response compared to the negative situation we often find ourselves in where an engineer cannot find the right part – and he just heads off to his next job, leaving the first customer to wait for an unconfirmed rescheduled appointment whilst they try to track down the right part.

In one example we see an engineer empowered by his technology, the other he is hampered by the lack of it.

Integration: 

We are living in a world of data lakes, data rivers, data mountains and all other types of data topography it seems! But all these vast swathes of data are meaningless unless you are able to draw insight from it, and quite often that means being able to let the data flow seamlessly from one set of business applications to another

[quote float="left"]We are seeing more and more companies offering ‘off the shelf’ or ‘out of the box’ integration with the leading CRM, ERP and even Telematics solutions.[/quote] Integration varies from provider to provider but often it is led by the integrations they have been asked to undertake, so if your current provider or a provider you have identified as being a good fit for your business don’t advertise integration with a specific system you are using – it is worth discussing the possibilities with them especially if it is a common platform so making their product work with it may be useful for other future clients also.

We are seeing more and more companies offering ‘off the shelf’ or ‘out of the box’ integration with the leading CRM, ERP and even Telematics solutions.

It is worth discussing with your providers how they are future proofing their products when it comes to integration – there is for example a large amount of proprietary technology centred around IoT at the moment and until accepted universal protocols are in place you want to make sure any technology you have invested in today is going to be of use tomorrow.

Tesseract is the leading service management software provider in Europe and have been in the Field Service Business for over 30 years.   For further information contact Tesseract on 01494 465066 or www.tesseract.co.uk
[hr]

Want to know more? A white paper on this topic is available for Field Service News subscribers only - but if you are a Field Service Professional you may well qualify for a complimentary industry practitioner subscription!

Click here to apply for your subscription now and we’ll send you the white paper to your inbox now instantly as a thank you for your time!
[hr]

Be social and share

Sara Mueller, Field Service Portfolio Director, WBR, discusses why despite the growing importance of technology within our industry, the critical balance between using automation to meet tightening SLAs and losing the important human touch points field service visits offer the benefits they bring...

They say the only thing constant is change.

In just over a decade we’ve seen service organisations move from cost to profit centers. Now business models are evolving beyond product-centricity towards selling solutions or customer business outcomes. This shift in business model evolution and higher levels of customer service comes largely from the innovative technologies that are being widely adopted across global service organisations.

So much so that companies are quickly falling behind their competition and losing money to inefficiencies if they are too slow to adopt the cutting-edge technologies that have filled the service space in the last few years.

As the market analyst and director of program development for the Field Service USA and Europe events, I spend my time looking for trends that seem like they will stick, and uncovering the buzz behind buzz words.

I’d like to share with you three technology changes that have been popping across my radar lately, that seem to be here to stay.

Artificial Intelligence

Artificial intelligence (AI) is one such buzz word.

Field service leaders are actively debating how it will impact the industry.

Do service executives believe robots will take the place of field technicians or customer service operators in the short-to-medium term future? No (though more service organisations are adopting the use of drones to carry out service inspections in a safer, more timely manner). There is a critical balance that must be maintained between the technology service organisations use to keep machines up and running, and the personal human touch points that often contributes to higher levels of customer satisfaction.

Instead of condition-based monitoring of equipment that crunches connected data in the cloud to predict equipment failure before it happens, machine learning is a way of monitoring similar data for abnormalities. It takes in huge sets of data about the equipment and identifies typical measurement ranges unique to the equipment being monitored. Then it monitors for abnormalities to see what the machine can learn about its own malfunctions. If a data set is out of range, the machine is able to flag it, knowing that something is off, and begin to uncover what the problem maybe.

 

Augmented Reality

Secondly, our Field Service events have been talking about the opportunity for augmented reality (AR) in service for a few years now. I am starting to see companies that have finally piloted or are using AR as a standard tool of their service organisation.

Early conversations around AR debated whether the technology should be given to customers, so they could be the eyes for the experienced service technician (rather than the service organisation having to pay to dispatch an engineer to the site).

But generally most service organisations have decided that from a liability and legal perspective, its best to send a more junior-level technician to the site with the AR glasses or hands-free device, rather than put the tools in the hands of the customer.

A reason that the adoption of AR by service organisations has finally picked up is that the technology has gotten better, cheaper, and with more choices available. Devices are lightweight and more intuitive as the technology has evolved.

One limitation of AR is connectivity bandwidth. While only a small bandwidth is necessary for AR to work, if your customer’s facility has limited Wi-Fi or an unstable signal, it could disrupt performance and communication. So service organisations are starting to build the use of AR into their service agreements, including ownership of Wi-Fi so they can control the Wi-Fi sources themselves to produce a more stable environment to support AR.

Parts Management

Finally, if you are in service you need to have the right parts in the right place at the right time in order to get the job done. This hasn’t changed. But the way service organisations are carrying out service parts planning has.

Several years ago organisations were managing parts on Excel spreadsheets and realised they needed a more robust tool to carry out planning effectively. Nowadays, since most service organisations have adopted field service management (FSM) systems, they are no longer integrating a parts planning tool into their ERP, they are integrating it into the FSM system.

They have been able to optimise the scheduling and dispatching of their technicians with the FSM, but are finding the right parts aren’t always where they need to be. Because of the optimisation, a technician no longer serves one account or needs a regular selection of parts in his vehicle.

 

Instead, it may now be more efficient for a technician to service a wider variety of products at different customer sites; therefore the inventory he needs to carry around is more complex. Even a technician’s training becomes part of the selection criteria in the FSM to determine which customer site he will be dispatched to; so this type of training data is being integrated into service inventory planning tools as well.

It’s an exciting time for field service technology, especially if you embrace change. But as I alluded to earlier, there is still a critical piece of service that comes from the human connection between technician and customer. No matter how technology evolves, the service industry will have to figure out the right balance of technology and human intimacy in order to maintain customer satisfaction and loyalty.

 

---

 

Be social and share this feature

Whilst The Automobile Association (The AA) might be a trusted brand that is better known for Roadside Assistance, the renewed growth of the Home Services business is now benefiting from end-to-end field service management software supplied by Solarvista, which includes a full integration with PartsArena Pro.

This gives The AA engineers mobile knowledge management technology like never before. Reviewing performance since its initial launch in September 2016, the statistics confirm just how positive this move has been.

PartsArena Pro was uniquely developed to drive efficiencies in the UK heating service industry, using Infomill’s AnswersAnywhere platform. This innovative platform can create a knowledge management tool for any industry worldwide that suffers from an unproductive “knowledge gap” between manufacturer and parts information, and the field service engineer out on site.

As an integral part of the Solarvista field service system, PartsArena Pro is now supplying this critical knowledge to The AA’s Home Service heating engineers, via offline Windows mobile devices. They can access the latest data and information such as exploded diagrams, parts codes and manufacturer technical manuals whilst out in the field.

This facilitates a speedy and accurate parts search coupled with the ability to add parts lists directly into the job for automated ordering, reducing engineer and back office effort and markedly improving ‘Second Time Fix’ rate.

The AA Home Services business currently has directly employed heating and plumbing engineers out in the field and their performance since the installation of the new Solarvista system with PartsArena Pro included has been significant:

• Overall productivity improvement of 15% (this is continually rising)
• 17% improvement in ‘First Time Fix’ rates
• PartsArena Pro specifically improving ‘Second Time Fix’ rates
• 8% reduction in time on site
• Tasks per shift improvement of 15%
• Reduction in calls made to the contact centre by 20%[/unordered_list]

“In the age of self-service and automation, delivering fully integrated systems to the benefit of our members, employees and business alike was a critical requirement within our transformation project.

The integration between Solarvista and PartsArena Pro that we have developed supports our engineers in resolving our members’ home emergencies as effectively and quickly as possible; and more of them per day, whilst also delivering a world class experience to our members.

The project has delivered significant improvements to both ‘First and Second Time Fix’ rates, significant improvement to our engineers’ productivity, whilst also enabling our engineers to very quickly and accurately order parts and book their own return visits face-to-face with members via their mobile devices. Additionally, their own core van stock of parts auto-replenishes without anyone having to place orders,” says Ash Cripps, Home Services Business Systems Manager, The AA plc.

Paul Allen is a heating and plumbing engineer for The AA. Shortlisted for the business’s upcoming Engineer of the Year award, he has this to say about PartsArena Pro: “Using PartsArena Pro has become part of my routine when servicing or repairing appliances to either get part numbers, fault finding charts or specific servicing routines that certain manufacturers ask for.

The time and money saved by not having to phone manufacturers or merchants for parts numbers or technical information is just one of the benefits of this software. The installation manuals and detailed diagrams make doing the job so much easier, which reduces the time spent on each job, helping you to get more visits completed in your working day.

 

And you also have the confidence that the part you have ordered will be the correct one as you can see it clearly in the diagrams. Most parts also have a photo in the information to help you identify them accurately. It is great to not have to pick up the phone to order parts or arrange any return visits.”

PartsArena Pro is a very successful example of how knowledge management technology can make a significant contribution to the productivity and efficiency of a business, reducing operating costs, increasing profitability and enhancing customer service. The trend for field service software companies to integrate this type of innovative software into their systems is enriching the service available to many organisations operating in the heating service industry, whilst giving field service software operators a distinctive competitive advantage.

Meanwhile, Infomill is talking to businesses in other industries about how the AnswersAnywhere platform can present a ‘game-changer’ to productivity, as Jonathan Ralphs, Infomill CEO explains: “We’re delighted that PartsArena Pro is part of the performance success of The AA’s Home Services business, delivering enhanced customer service to homes across the UK. The project very clearly demonstrates the potential of PartsArena Pro and indeed our AnswersAnywhere platform, from which it is built. Infomill can create an innovative knowledge management tool for any industry worldwide that suffers from an unproductive “knowledge gap” between manufacturer and parts information, and the field service engineer out on site.

Service technicians need the right knowledge at their fingertips to make informed, accurate and quick decisions; increasing their level of productivity significantly. To achieve this is a distinct competitive advantage and that is exactly what AnswersAnywhere can do.”

 

---

 

Be social and share this feature

SyncronTM, a leading provider of cloud-based after-sales service solutions focused on empowering the world’s leading manufacturers to maximise product uptime and deliver exceptional customer experiences, have recently announced the launch of the After-sales Excellence Forum, a complimentary, half-day event aimed at helping manufacturers unlock hidden revenue opportunities and achieve new levels of customer satisfaction through optimised after-sales service.

It’s no secret the world is changing, and it’s changing fast. Multiple demographic, economic and social trends are pushing manufacturers to transform their after-sales service organisations, and shift from a reactive, break-fix model to maximising product uptime. This event aims to help companies embrace this change to achieve new levels of financial performance, customer loyalty and competitive differentiation.

The agenda specifically includes:

• How to leverage after-sales service as a growth and profit lever
• A deep-dive into how optimised service parts inventory greatly improves service operations
• Challenges facing after-sales service professionals, and how to overcome them

“We are thrilled to welcome the UK’s leading manufacturers to the After-sales Excellence Forum,” said Gill Devine, VP of Sales, EMEA at Syncron. “We are bringing together some of the top after-sales service experts to share strategies and tactics for how to successfully navigate today’s changing world. We aim to give manufacturers the confidence to take their after-sales service operations to the next level, increasing both financial performance and customer loyalty.”

The complimentary event will be held at The Icetank in London on 12 Oct. Representatives from Syncron, Servispart Consulting and IAAF will lead the day’s discussions.

To learn more about the event and register, click here.

 

---

 

Be social and share this feature

The management of parts has been for a long time a little unloved in terms of field service technology. Kris Oldland talks to Gary Brooks, CMO, Syncron to find out how and why that is changing...

KO: There finally seems to have been a quite perceptible shift in the number of companies beginning to pay attention to the importance of good parts and inventory management. Are you feeling this?

For example every-time I come across your team at various different events I see you having a lots and lots of conversations at busy, busy booths.

Are you finding that whereas, perhaps a few years ago you were having to evangelise the importance of tools like yours, today people are actively looking for them?

GB: You’re absolutely right. There are so many things going on socially, politically, demographically, economically that are really putting pressure on the field service organisation to not only deliver maximum uptime - we are really moving away from the traditional break/fix aftermarket model, towards moving towards being much more proactive and preventative, and technologies are enabling us to do that.

Manufacturers around the world are waking up to the fact that the market has changes - from the volatility in the orders of durable goods, to millennials taking over the workforce, to the movement to ‘power by the hour’, so a lot of them are looking for low hanging fruit.

They’re asking “what can I do to my service organisation to increase revenue” because a lot of companies now view the product that they sell as something that can they can put in the field to leverage high margin service revenue for an extended period of time - in heavy equipment we’re talking 25 years.

 

So they are looking at this, they’re saying how can I improve revenue? How can I improve margin? How can I have a more predictable service business and then how can I deliver a wow level of service - or prevent that service call from having to actually take place over time because of the use IOT, machine learning and smart parts.

Our friends at The Service Council established that 50% of service attempts fail because of not having the right part, and even if the right part is available then companies are not maximising the revenue correctly because they are not pricing correctly. 

So, for a lot of organisations they are saying lets get the parts side of the business right - because the financial gain that can be harvested is significant. 

When you look at the inventory side, we see companies increase service parts revenue by up to fifteen percent, increase gross profit margins up by as much as forty percent and taking forty percent of inventory whilst taking their fill rate up above ninety percent.

So, mathematically, the financial value creation really works and then if those parts are priced appropriately- we are seeing companies take up their service parts revenue by as much as five percent and gross profit margins by as much as seven percent.

If you have several hundreds of millions of dollars, or even close to a billion dollars if you’re in a sector like Aerospace, five percent here and seven percent there suddenly becomes a very sizeable figure.

So in Answer to your initial question, yes we are now seeing a much bigger customer pull, and I think whilst it may be partly due to the Syncron being much more visible in the sector, but it is also a matter of demand from the market - increasingly companies are now coming to us.

KO: You mention outcome based services as a significant shift that is happening within field service across multiple regions and verticals.

What impact is that having on the spare parts/aftermarket and consumables markets - is there a direct adverse impact on this?

GB: Yes, I would think that it is very much having an adverse impact on this side of the market.

Manufacturers will increasingly sell service level agreements much like you would see in high tech.

In high tech there is not a lot of sales of parts. If your servicing a piece of high tech equipment whether it be in medical or whether it be in the IT space, you have a service level agreement and you have certain requirements whereby it needs to be back on line within an hour or two - so there is no buying of parts.

I think as more industries begin to adopt the service level agreement approach rather than buying a part it will have an impact on parts revenue as having that part available to perform that repair or maintenance in advance of the asset failing becomes even more critical.

 

In my car for example, I have an app that tells me when there is something going wrong with my car.

Today, it doesn’t tell me when a part is about to fail but in the future I imagine that it will and so when I do have to bring the car in for service it will say well this part, this part and this part are all close to failing so why don’t we replace these all now?

It becomes preventative maintenance, we prevent the failure from ever happening. This is changing the way businesses approach the value of parts and indeed service. It is certainly an exciting time to be in the field service business because of all these economic, social and political changes that are driving the attention on the service business but also the emergence of all these new technologies.

KO: Given this new wave of interest in Field Service as a something more than mission critical, but also fundamental to revenue streams - are you seeing more companies you work with getting involved with such conversations from board level?

GB: Yes, I absolutely think field service is really garnering executive level attention now.

I think a lot of that is driven by the demand and the shift that we are seeing amongst the customers. Customer-centricity has always been a bit of a buzz word in the industry but I think it is becoming hot again and I think that’s because by 2030 around 75% of the workforce will be comprised of Millennials.

Their service expectations have been informed by the likes of Amazon, Uber and TaskRabbit. Their mindset is “What do you mean I can’t have it fixed now?” And that is definitely driving the demand side.

[quote]Service expectations have been informed by the likes of Amazon, Uber and TaskRabbit. Their mindset is “What do you mean I can’t have it fixed now?” And that is definitely driving the demand side.

But then also when you look at the margin side and at the revenue side, I think a lot of executives that are in the C-Suite came up from the manufacturing or sales side - so they sometimes have a biased view of their business. I call this the street light effect - they can only see what is in the light and that for them is looking at the product side of the business.

 

But for many of them, they’re starting to look beyond the street light and are saying wow - this service business is pretty darn exciting.

And in a lot of cases it’s often just held together with bubble gum and banding wire. So the thinking goes “if we make some upstream investments, we can deliver some pretty healthy downstream dividends.”

So I think that executives are just beginning to expand there point of view. For many years it’s been a case of “it’s [service] kicking up great margins, it’s not broke, let’s not fix it.”

But now companies are seeing with declining lures on the product base side of a business. They’re faced with dwindling margins and if they put even more effort on this side of the business they can only get a limited return.

I think companies are starting to see that similar investment in time and resources on the service side now is going to deliver a lot better returns.

 

---

 

Be social and share this feature