Transforming Field Service into a Profit Powerhouse - Spencer Earp (ServiceMax) - Service Management Expo, 19 June 2014
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Transforming Field Service into a Profit Powerhouse
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Transforming Field Service into a Profit Powerhouse - Spencer Earp (ServiceMax) - Service Management Expo, 19 June 2014
- 1. Transforming Field Service into a Profit Powerhouse Spencer Earp, Vice President EMEA
- 2. 1. Industry Data 2. Service in the Spotlight 3. Case Study Agenda
- 3. 0% 10% 20% 30% 40% 50% 60% Service Revenue Service Cost Customer Satisfaction Workforce Productivity Workforce Utilization First-time Fix Metrics to Improve in 2013 Metrics in focus for 2013. Percentage of Respondents, n=226 TSC Data, June 2013THE SERVICECOUNCIL. NOT FOR DISTRIBUTION. 48% 46% 44% 35% 30% 27%
- 4. Source: Aberdeen Group, December 2012 0% 5% 10% 15% 20% 25% Drive Service Revenues Enhance The Customer Experience Improve Customer Satisfaction Improve Customer Loyalty Top Goals 0% 5% 10% 15% 20% 25% Drive Service Revenues Drive Service Resource Productivity/Utilization Next Most Important Goals
- 5. I want more revenue! I want higher loyalty! I want more productivity! Oh – and save 5% on operating costs this year. And the CEO says…
- 6. Service is Changing – and Changing Fast… Cost Center Profit Center Now Service is in the spotlight
- 9. Where are Coca-Cola Enterprises? 17 manufacturing sites 13,000 employees $8.1 billion revenue 40+ Brands 12 Billion bottles and cans per year 170 million consumers Coca-Cola Enterprises is the leading Western European marketer, distributor and producer of non-alcoholic beverages. It is one of the world’s largest independent Coca- Cola bottlers.
- 10. Equipment Service At Coca Cola Enterprises 600k CCE Equipment 630+ Service Techs 5 Service Call Centers 6 Cold Drink Centers Spare Parts Logistics Two strategic goals Repair CCE equipment cost effectively Expand into paid service on non CCE equipment
- 11. Technician working day… ON-SITE DRIVE-TIME ADMIN Historically DRIVE-TIME was the focus, but analysis showed ADMIN was the BIG PRIZE.
- 12. Old system inefficient and inaccurate Technicians & response time slow Archaic service logging & loss of real time information Dissatisfied customers Revenue Loss due to billing errors
- 13. Mobility optimizes capabilities Portable device, always on No boot up or connection time Immediate Data capture Enhanced real-time reporting Automated data transfer between Salesforce.com and SAP
- 14. ON-SITEDRIVE-TIME ADMIN Admin time reduced dramatically ON-SITEDRIVE-TIME ADMIN After ServiceMaxBefore ServiceMax 50%+ ADMIN SAVINGS
- 15. Increased On-site Time with Customers Achieved first goal: increase on-site time Platform for next goal: increase efficiency on-site 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 2012 P7 P8 P9 P10 P11 P12 2013 P1 P2 P3 P4 P5 P6 Average Jobs Per Day After ServiceMax Before ServiceMax
- 16. x =630 630 jobs1job
- 17. x =630250 157,500 pa
- 18. Thank you and do join our panel discussion starting at 2pm spencer.earp@servicemax.com www.servicemax.com
Hinweis der Redaktion
- 15 minutes isn’t much time but I do hope I can touch on a few things for you to think about, and hopefully join us following this session, for a one hour discussion on moving from a cost centre to a profit centre. We’d be delighted to meet with you separately should you prefer… my contact details will be shown at the end.
- A brief agenda we’ll include: Industry data and background Service in the spotlight (today’s pressure on the business) One of our client case studies
- Here are some metrics from Service Council who surveyed service leaders about their priorities for things to imporve in 2013. Many usual suspects in workforce utilization rates, productivity enhancements and customer satisfaction. The big one to point out is the main priority which is service revenue improvement. Revenue is probably at the top of your agenda if you are a service leader, closely followed by reducing costs, improving satisfaction and increasing productivity
- Gartner and Aberdeen group have also undertaken research on this area and the findings are similar. In summary the trend across all reports show the drivers to be: 1/ Drive Service Revenues 2/ Improve Loyalty and satisfaction 3/ Improve operational effectiveness / productivity
- So how does this translate in terms of a mandate from the board? Well it comes as some what of a service dilemma. How do I grow revenue Increase productivity, Make my customers happy And do all of this whilst reducing my operating expense?
- Times are changing for service leaders and fast – it is exciting times. Yes service leaders are in the spotlight now more than ever and now is the time to GET service noticed The drive for those revenue gains, we all know have been there but never delivered, create a fertile ground for change. Now is the time to utilize your greatest asset – your technicians, your trusted advisors Look for additional investment to update antiquated systems Take a ‘fresh look’ at your service offering Find those hidden gems with analytics and reporting
- Here is one example of one of our clients and the transformation they have undertaken.
- A company transformed
- CCE is a division of Coca Cola. CCE focuses on serving the Western European market place. In 3rd place within the top 5 most recognized brands in the world it is an icon in the business world
- CCE wanted to maximize the 630+ strong European service workforce and its impressive logistics and call center infrastructure. The two primary goals were 1. to repair CCE equipment as cost effectively as possible. Considering that service on CCE equipment is provided as part of the product supply contracts they have with their customers – this is an important goal. 2. and the most transformation was to expand its business into paid service work on non CCE equipment. After all if they are visiting a restaurant why not complete repairs on shake machines, coffee machines, fryers and such like?
- The question was how could they drive additional productivity and then use that productivity to fuel their growth plans? Historically everyone’s focus was around drive times. But CCE asked themselves and us would dynamic route scheduling help? Well not when the engineers had laptops locked in sealed cases back in their vans! Then CCE started to realize the hidden gem was admin time. What was taking their engineers so long to do the admin?
- CCE discovered engineers weren’t reporting real time. By the time laptops were removed from their sealed cases in the vans, powered up, waiting 5 mins for the boot up, connect via the 3g card, connect to VPN and then finally get on the system it just all took too long. Engineers were closing work orders down at the end of the day. Urgent calls weren’t being responded to, reporting was not real time and there were multiple billing errors.
- Now with ServiceMax on iPhone and automated data transfer between Salesforce and SAP CCE have real time reporting, live dispatch to engineers of urgent calls on their ‘always on’ device and productivity and customer satisfaction gains
- So admin time has reduced by 50% - engineers are closing calls real time via their iPhone quickly and efficiently
- So what has that meant in real terms? In essence one extra job/day from circa 7.5 jobs per day to 8.5 jobs per day – so what does that mean net net??
- So what is the profit powerhouse equation? Well 630= tecs x 1 extra job per day = 630 jobs per day extra
- And – 250 working days x 630 extra jobs per day = 157,500 extra calls per year You will know in your own businesses how much revenue you generate per service visit – you can work out the benefits. Needless to say the return on investment is huge…