Following the news that John Lewis has chartered a fleet of ships to limit the impact of supply chain disruption on its Christmas season, Alan Laing, UK&I Managing Director at enterprise software firm, IFS has praised the company – noting that others can learn from their foresight and planning.

As reported by the BBC, John Lewis is chartering a fleet of extra ships, along with a number of other businesses, to make sure it has Christmas stock on time.

IFS HAS PRAISED JOHN LEWIS' FORESIGHT AND PLANNING CAPABILITIES IN LIMITING THE IMPACT OF SUPPLY CHAIN DISRUPTION AHEAD OF CHRISTMAS

Alan Laing, UK & Ireland Managing Director at IFS commented: “Supply chain disruption has dominated the business and news agenda for much of the pandemic period, and it is clear that firms are increasingly worried about what that may mean for seasonal sales in the run up to Christmas. The measures announced today by John Lewis show a business that has made an intelligent assessment of the potential pain points in its supply chain operations and put in place a well-considered mitigation plan well ahead of time, proactively minimising disruption and ensuring their customers still receive the service they’ve come to expect from the retailer. Others can learn a lot from this example, leaning on resource planning software to gain true visibility of their business and plan for a range of potential scenarios to make sure they are delivering for their customers when it really matters – at the moment of service. However, the time to do this is now, before it’s too late.

IFS helps companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations to plan and manage their supply chains and coordinate people, product, and processes to ensure businesses run optimally.

Further Reading:

• Read more about Parts, Pricing and Logistics @ www.fieldservicenews.com/parts-pricing-and-logistics
• Read more about Service Supply Chain on Field Service News @ www.fieldservicenews.com//service-supply-chain
• Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
• Find out more about IFS @ www.ifs.com/
• Follow IFS on Twitter @ twitter.com/ifs

Each step of the supply chain is important in its own right. But they all contribute to the one thing that every business needs to control: cost. BT Final-Mile’s Mark West explains more...

The most effective place to make savings is the last mile. It accounts for 41 per cent of supply chain costs. For companies that rely on their deliveries arriving on time, this could save thousands of pounds – if not millions. But how can technology actually help businesses make these changes? And how much of an impact does it really have on cost?

SMALL CHANGES, BIG RESULTS

Across the supply chain, optimisation plays a key role in reducing costs. Managing time is the biggest and best way to make an impact. But if you’re trying to hit a two-hour delivery slot or deliver something the day after a customer or engineer orders it, it’s harder to optimise.

When a business knows upfront where and when they need to deliver something, they can plan driver journeys, they can group deliveries together, and even pack delivery lorries and vans more efficiently. These steps bring two major benefits. Engineers can spend less time being van drivers and more time being engineers and fewer miles on the clock means savings on fuel.

SIMPLIFYING RETURNS

Optimisation can also help with managing the returns supply chain, which is particularly important for business-to-consumer companies. “For some organisations, 50 per cent of what they send out is then returned,” explains Richard Wilding, Professor of Supply Chain Strategy at Cranfield University. “So, your biggest supplier becomes your returns supply chain.” Working out how to handle returns is an important part of simplifying your operations.

AR, MR and VR have proven to bring value to the business of those companies adopting them, both in terms of reduced time for work execution, thanks to faster maintenance procedures, improved staff productivity and efficiency, as well as of increased workforce safety, thanks to hands-free activity, remote training and collaboration.

Products based on such technologies are key factors for all companies, regardless of the sector they are operating in, their size and business turnover. Utility and Industrial Manufacturing sectors are currently leading the way in this digitalization process, due to the intrinsic nature of the activities their operators are always exposed to. AR, MR and VR are able to “extend” the resources’ capabilities. supporting them through guided procedures while carrying out maintenance activities on production lines, arming them with pertinent information on plant assets and, last but not least, connecting them with other colleagues to receive or give real-time assistance. The continuous transfer of corporate knowledge is therefore now a reality.

THE POWER OF ARTIFICIAL INTELLIGENCE

It all comes down to the algorithms. And they’re powered by artificial intelligence and machine learning. “What you’re trying to do is optimise the variables within the algorithm,” says Professor Wilding. “The algorithm is always looking to meet a particular goal, and they’re always looking for the best overall ‘score’. ”There may be many parts of the process to think about – from travel time to inventory. The algorithm will use these to find the best way of achieving a particular goal. “But these are learning algorithms,” continues Professor Wilding. “So, it’ll look at how it’s performed over a time and adjust the variables accordingly.”

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"Supply chains are carefully balanced and run effectively when they can predict behaviour. But when that behaviour changes, they can't adapt easily..."

“Aside from optimisation algorithms, the critical thing about technology in the final mile is transparency,” says Professor Wilding. “For business customers, you’ve got to make sure you know where things are. That means you need to have GPS on that final mile, and real clarity on when it’s going to arrive. That helps in terms of serving the customers’ expectations. And by having that data, you can be more adaptive in terms of where you want to take things, and how to ensure that a delivery is taking place. It gives businesses an opportunity to plan the best route in that final mile.”

But to improve, it’s really important to understand the link between time, transparency and trust. Supply chains are carefully balanced and run effectively when they can predict behaviour. But when that behaviour changes, they can’t adapt easily – and that drives up costs

Supply chains experience similar surges on a much smaller scale every day. An engineer might need a part by Friday, but they’ll order it for Monday in case it doesn’t arrive. Or they need 100 items, but they order 120 because they don’t trust they’ll get them all. With better supply chain visibility, those fears wouldn’t be there. It would build trust. These three elements – time, transparency and trust – are all closely linked. The more we understand about time, the better the transparency. That helps to build more trust. Bring all these together and it’s easier to keep costs down.

LOCATION, LOCATION, LOCATION

Today, one easy way to help users understand timing and improve transparency is with location and positioning services. It could be as simple as giving drivers smartphones with GPS switched on. Or guaranteeing a delivery time and sending messages to engineers when their parts arrive at their pick-up locations, with directions to help them get there faster. Once a business has this information, it’s easier for engineers to work more efficiently – by bringing the parts they need closer.

That’s why smart lockers, like those run by BT Final Mile, can help. The team has lockers at more than 1,800 locations across the UK. Engineers are only ever 15 minutes away from the nearest one. That means journeys can be shorter, and because the drivers get messages when their parts are ready, they don’t make pointless trips before what they need has arrived. Plus, the team can deliver parts before 8am, so engineers know that they’ll have what they need for their day.

Optimisations like this have already helped companies cut costs. EDF Energy is using Final Mile lockers to roll out millions of smart meters to customers across the country.

We have had customers who needed to move away from the old way of engineers picking up equipment – by going to a depot or going to a wholesaler. The solution they have received from BT-Final Mile was the ability to take all of the stock in and be able to get that delivered to the right location. So, it was easy for their engineers to pick it up, then get on and do their job.

THE FUTURE OF THE LAST MILE

Technology has huge potential to cut supply chain costs. “I really think there’s going to be a drive now to address the issue of how we can make our operations less dependent on people” says Professor Wilding. “If you’ve got a highly automated facility that doesn’t have many people, it’s far more resilient than our current facilities.”

This drive for automation could also help drive efficiency during normal working. Automation has the potential to change every part of your supply chain strategy. “When we talk about smart lockers, you might have small additional manufacturing facilities positioned near the lockers to make certain components,” says Professor Wilding. “If an engineer needs a specific part, it can be 3D-printed in a short lead time for them, and then picked up.” This kind of technology could help speed up delivery, reduce carbon emissions and reduce the number of delivery vans on the roads. Whatever the future holds, it’s clear that taking control of your supply chains today is key.

Further Reading:

• Learn more about Parts, Pricing and Logistics @ htwww.fieldservicenews.com/parts-pricing-and-logistics
• Read more about BT Final Mile on Field Service News @ www.fieldservicenews.com/BTfinalmile
• Learn more about BT Final Mile @ www.finalmile.bt.com
• Follow BT Final Mile on Twitter @ twitter.com/BTBusiness
• Connect with Mark West @ linkedin.com/mark-west 

three ways to stay on track of the supply chain

First and foremost, understanding the supply chain’s efficiency is difficult to master, which is why there are service industries that assist with some of the distribution of services. But how can you stay on track of the supply chain? Here are three tips that we use, that are beneficial when wanting to stay on top of the curve. 

#1. Adapt to Your Customer Demand and Go Mobile

#2. Outsource an External Partner

When your company decides to outsource an external partner, you are allowing yourself to focus more on your company’s core strengths and values. Thus, remaining ahead and on track of any trends relating to the supply chain. Instead of maintaining in-house infrastructure and expertise to manage every operation in your business, companies should consider outsourcing supply chain partners. By outsourcing a third party logistics company, you will be improving your business by speeding up service and improving your customer service. Additionally, the business will be saving both time and money. 

#3. Increase or Maintain Your Visibility

The term ‘Supply Chain Visibility’ refers to your company’s ability to track every component and touchpoint the product has undergone, from the suppliers’ hands to yours. 

You can obtain good visibility to your customers by giving your suppliers the ability to check your inventory in real-time, in order for them to gain a better understanding of current stock and plan ahead for future demand. Having a supply chain partner that presents good visibility and allows your team members to access details about your counts allows them to strategize freely, without risking too much distraction back-and-forth. 

Allowing colleagues, customers and suppliers the power of visibility relieves pressure regarding communication and inventory planning for the future. Your supply must be responsible to stay optimized for many different market and supply conditions. Think redundancy and multi-channel supply chains.

Kevin Little is VP, Sales and Marketing at PiVAL International.

Trimble and Intelligent Audit, a leader in freight audit and transportation spend optimization, announced a collaboration to integrate their solutions to enable users to benefit from both real-time visibility and one of the most robust audit analytics tools in the industry.

The collaboration between Trimble and Intelligent Audit allows the two companies to provide a solution that solves some of the most significant pain points for shippers today. Users can access visibility and tracking through Trimble's supply chain solution and audit and spend analytics through Intelligent Audit. In addition, Intelligent Audit and Trimble's data sharing will enable both companies to enhance their products, providing a compelling solution for users in the transportation and logistics industry.

Customers of both companies will benefit from this new integration that provides a solution for the supply chain," said Joe DeBoth, vice president and general manager, Trimble Transportation Visibility. "Users have access to improved reporting and analytics with the added freight visibility and tracking abilities through the audit process."

"We were the first company to automate the audit and recovery process in transportation," said Hannah Testani, chief operating officer at Intelligent Audit. "Each year since our inception, we've worked hard to continuously improve our product. Working with Trimble to tap valuable supply chain data will further advance the audit process and is another step in the evolution to continually reduce transportation costs, improve customer experience, and enhance visibility throughout the supply chain."

Trimble's Visibility solutions provide supply chain organizations with visibility into operations featuring a secure, multimodal, real-time information platform. Its features include: Transportation Management System (TMS) integrations, dynamic ETAs, proactive weather and risk alerts, rich data down to the SKU level, temperature control tracking, exception management and final mile functionalities, efficient workflow automation, and a world-class, user-friendly interface.

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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.

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Giacomo Squintani of parts management specialists Syncron looks at the challenge of ensuring your supply chain is not the weak link in your field service delivery...

As the overall experiences customers have with durable goods manufacturers become more critical to company success, the strides made in field service management to ensure these positive brand interactions have been remarkable.

Field service technicians not only are the ‘face’ of a company – the individuals interacting with customers on a regular basis – but also key stakeholders in improving performance for the business as a whole.

As a service manager, you must put yourself in both your customers’ and your technicians’ shoes. Your customers’ experiences have improved greatly in recent years. You’ve reduced response times and improved the accuracy of the timing of your technician’s visit while improving first time fix rates. You’ve empowered them with the guidance to fix many problems without visiting them in-person, saving everyone time and money.

But, what’s the classic problem that frustrates your customers, your technicians and you as a manager?

That’s right. The technician is on time, highly knowledgeable and determined to help, but isn’t stocked with the correct part.

So your brand’s main ambassadors are all too often left sinking in unsatisfactory excuses as unhappy customers stare and shake their heads. And suddenly, that value you’d created through field service management technology investments is compromised by insufficient part availability.

The problem

Many OEMs have successfully grappled with the age-old parts:people challenge, and are reaping its many benefits.

In 2013, AberdeenGroup established that only 45 percent of the companies they interviewed had “increased their focus on service parts management as a result of the added demands from customers to improve service-issue resolution”[1]. Why are so many organisations failing to address a problem that impacts technicians’ effectiveness, brand reputation and customer loyalty, tying up cash in vans and warehouses in the shape of unnecessary, often obsolete stock – ultimately harming profits?

In a separate report, WBR established that, when establishing the criticality of future investments, only 8 percent of executives were considering inventory management.

Yet, when they examined the sources of customer complaints, the biggest contributing problem was parts unavailability, cited by 55 percent of service executives. Failure to fix the issue on the first visit, the engineer’s arrival time and their lack of experience generated far fewer complaints, with rates of 35 percent, 29 percent and 12 percent respectively[4]. These negative experiences leave your customers baffled and frustrated with a negative perception of you brand.

The solution

Resolving these types of customer issues and experiences is perfectly feasible.

Technologies exist for this very purpose – service parts management and scheduling solutions interacting together to ensure that when your technician arrives to the right place at the right time, they have the right part to keep your customers happy and encourage repeat business.

Service parts management can make your technicians’ lives easier, and in turn positively impact each customer’s experience with your brand.

As outlined previously, technicians’ responsibilities are broadening: their job no longer ends when the issue is resolved, it entails acting as trusted advisors, identifying opportunities for further business and potentially maintaining other vendors’ equipment. And, most importantly, are the ones interacting face-to-face with your customers.

Room for improvement

Service part inventory networks are complex – a part may go through central warehouses, distribution centres, regional stocking locations and secure local collection boxes along its journey to a technician’s vehicle. Oftentimes, technicians will end up being over-stocked, causing unnecessary restocking at the warehouse.

Hurt by online shopping, brick-and-mortar retailers are providing spare part stocking locations to bridge the physical gap between technicians and end customers.

With switching barriers lower than ever, in a competitive landscape where you are not only fighting rival OEMs but also independent service providers, you owe it to your technicians to empower them with the right tools for the job.

You owe it to your customers, too. And, having established fantastic efficiencies in field service management, there is far greater scope to drive value and ROI by optimising your service part supply chain. Enable your techs to drive an awesome customer experience at every interaction by ensuring the right part for the job is at hand when and where they need it.

[1] AberdeenGroup, “Service Parts Management 2013: Align Planning and Forecasting with Efficient Resolution”, p. 1

[2] AberdeenGroup, op. cit., p. 3

[3] AberdeenGroup, op. cit., p. 7

[4] WBR, “Where Service Meets Sales: Automating for the Future of Field Service”, p. 10

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