Service Management Report
Volume 5, Summer 2008
Main Articles:
Ask the Expert: Service as a Competitive Differentiator
Mike Judd, Partner in the Industrial Sector, Supply Chain Management, IBM Global Business Services, shares his views on the increasingly strategic role of service across multiple industries. Read the interview now.
Feature Article: SSM: An integral part of a cost-reduction program by Doug Guess, Chief Financial Officer, Servigistics
As Chief Financial Officer, it's my job to ensure that the company does more with less in order to deliver increasing value to our shareholders. It appears that "doing more with less" is a common refrain among companies across the globe in the current economic climate of increasing costs and slowing top-line growth. Many of these global companies - whether they are high-tech, aerospace and defense or motor vehicles - are struggling to deliver increasing value to shareholders as pressure on profits increases. Read full article
Feature Article: Streaming Video Industry Analysts and Visionaries Weigh-In on the Value of Strategic Service Management
Welcome to our most recent video where well-known service industry leaders share their thoughts and insights on how post-sale service is becoming increasingly strategic to profits, competitive differentiation and customer loyalty. This quarter Roger Dycus, Senior Director of Operations, Rolls-Royce Corporation weighs-in. Click here to view video
If you missed the previous videos
Industry Research
AMR Research: Thriving in a Recession - Value Chain Strategies at Work
The natural reaction in a downturn is to retreat, cancel all new initiatives, pull back to just the basics, and tighten the ship. But smart companies across industries will be much more strategic, targeting areas that will not only see them through a rough economy, but help them thrive during and after it passes. Including: Maintain service management focus. Do not cut back as the volume of original equipment orders decline. Your ability to service is vital to your revenue stream. Read the report at AMR Research by clicking here.Forrester Research: Market Overview of Field Service Management
Despite marquee case studies like those of Best Buy and Pitney Bowes, there are still many organizations that struggle when it comes to field service management (FSM). In fact, the results of Forrester's August 2007 North American Field Service, Customer Analytics, And Customer Data Management Online Survey indicate that these cases are probably more the exception than the rule. Only 25% of the companies we surveyed ranked their core field service capabilities today as very good/outstanding. For more advanced functions like mobile capabilities and spare parts planning, the picture gets even bleaker, with the percentage of firms with very good/outstanding capabilities dropping into the single digits. Read the report at Forrester Research by clicking here.
AMR Research: Pricing Optimization in a Down Economy: Mandate for Growth or Ill-Timed Choice?
The true goal of pricing optimization projects is not unilateral price increases, but profit improvement. So, despite the fears, the answer to all those executive questions is yes, we need price optimization. Improving pricing practices with technology, process redesign, personnel training, and better performance measurement can increase margin realization by recommending lower cost product substitutes or enforcing volume-based discounts. Pricing applications can also improve profitability by controlling margin leakage caused by hidden freight costs and excessive rebates as well as by reducing invoice errors and quote cycle time. Read the report at AMR Research by clicking here.
Case Studies
From Depot to Technician's Trunk - Part Visibility on all Levels
With the implementation of Servigistics, manually managing trunk stock levels was replaced with a customizable and intelligent process that utilizes relevant service data from the host systems to optimize spending on service parts inventory and logistics. The integration built with Servigistics offers inventory managers the flexibility to control the key drivers of their processes without requiring an ongoing engagement of IT resources. In this manner, the planning organization can quickly alter processes based on the changing needs without a heavy reliance on internal IT resources. Download the complete case study now.
Soaring Service Levels
By replacing its first generation parts management solution and then integrating Servigistics Service Parts Management into SAP, a leading aerospace manufacturer was equipped to provide world-class service at a lower overall cost. The company achieved higher service levels, a reduction in supplier lead-times and a significant increase in on-time delivery. Download the complete case study now.
Upcoming Events
EXCHANGE TOKYO 2008
September 3-4, 2008
Hotel Grand Palace, Tokyo
Field Service East
September 9-12, 2008
Atlanta, GA
Service Management Expo
September 16-17, 2008
Birmingham, UK
Strategic Service Management
December 2-5, 2008
Brussels, Belgium
Podcasts:
Pressed for time? Try a podcast! Listen to the latest industry news and trends during your work-out, your commute or air travel.
Service Parts Planning and Pricing Pack One-Two Punch
To maximize the profitability of their post-sale service operations, companies must adopt a two-pronged approach that includes optimizing the placement and distribution of service parts inventory as well as the administration of service parts prices. Those companies that recognize the critical linkage between service parts planning and pricing and integrate their systems and processes accordingly can expect to improve both top-and bottom-line performance.
Industry News
As Strategic Service Management continues to garner executive level attention, the volume of related news, media and industry analyst coverage, market research, and white papers has dramatically increased. As a result, one of the goals of the Service Management Report is to provide you with the latest Strategic Service Management information.
Airline Procurement: Post-Sales Service: The Hidden Profit Lever
Exorbitant fuel prices, a decline in consumer and business spending, a reduction in new finished goods manufacturing, an increase in performance-based service contracts and product commoditization have placed enormous pressures on A&D companies to continue growing profit margins while at the same time maintaining increased service demands and expectations. Maximizing asset uptime, optimizing the spare parts supply chain across disparate business units and geographies, effectively gauging and managing pricing and capturing service-related knowledge is becoming a top priority for best-in-class companies. Read the full article now.
Computer Business Review: Embraer selects Accenture and Servigistics to implement SPM solution
Accenture, a provider of consulting, technology and outsourcing services, has announced that Embraer, an airplane manufacturer, and Servigistics, a provider of strategic service management solutions, have partnered with the company for the implementation of a Service Parts Management solution. Read the full article now.
Vanilla Plus: The Network's Unsung Hero
Inventory management enables carriers to exploit and properly manage their most valuable asset, so why isn't more attention paid to it, asks George Malim? Read the full article now.
Sourcing Innovation: Strategic Service Knowledge Management
Technology expert blogger Michael Lamoureux, aka "the doctor," dubs Service Knowledge Management "the right approach." He notes that it meets the basic requirements, it's easy to configure, and easy to use. In addition, he points out that it's accessible by support representatives, technicians, and customers and it can be configured to show each user the information at the right level of detail in a view tailored to them. Furthermore, it integrates to the Command Center and the rest of the Strategic Service Management Suite, allowing each user to access it quickly and easily when he or she needs to. Read the full article now.
Managing Automation: Manufacturer Awards
In the Customer Mastery category, Juniper Networks, a maker of secure networking products, won for optimizing its inventory and improving management of planning, procurement, and reallocation processes by implementing a common platform for service parts planning. The project allowed Juniper to reduce operating expenses by 13% by reallocating spares, resulting in initial savings of $3.5 million. Juniper also improved on-time delivery by 27% and increased customer satisfaction by 10%. Read the full article now.
Manufacturing Computer Solutions: NCR to Cash In on Servigistics Service Parts Management
NCR Corporation says it has signed with service management software developer Servigistics to improve customer service while also reducing its global service parts inventory. Read the full article now.
Software Magazine: Contact Centers on the Move to Unified Communications
Presence capability is being used to engage higher expertise in customer support; goal is to solve the customer's problem on the first contact, increasing satisfaction and lowering costs. Read the full article now.
Global Logistics & Supply Chain Strategies: Juniper Networks Achieves Rapid Results with Servigistics Implementation
When Servigistics was first implemented, Steve Blaz compared the results from the old spreadsheet process with reports from the new Servigistics software. He was immediately able to identify depots that had too much or two little inventory?.This redistribution saved Juniper $3.5m within a few months of implementation and another million dollars six months later. Blaz says other immediate benefits include better asset utilization, better timeliness and better customer service overall. Read the full article now.
We value your feedback on this newsletter; therefore, please forward any comments and/or ideas on issues you would like to see covered in the future to srentner@servigistics.com.
At Servigistics our mission is to help clients improve corporate performance by dramatically reducing costs, increasing profitability, and driving customer loyalty to new levels through Strategic Service Management solutions. We believe that information is a key component of our mission.
Click here for a library of leading SSM, service parts management, service parts pricing, service workforce management and service knowledge management white papers as well as industry case studies.