Service management
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- 2 chapters
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Through Manufacturing, Revenue and Strategy
Among typical manufacturers, post-sale services (maintenance, repair, and parts) account for less than 20% of revenue. But among the most innovative companies in service, those same activities often generate more than 50% of the profits.
ISO/IEC 20000 is the internationally acknowledged for service management.
Benefits
The main drivers for a company to establish or optimize its service management practices are varied:
- High service costs can be reduced, i.e. by integrating the service and products supply chain.
- Inventory levels of service parts can be reduced and therefore reduce total inventory costs.
- Customer service or parts/service quality can be optimized.
- Increasing service revenue.
- Reduce obsolescence costs of service parts through improved forecasting.
- Improve customer satisfaction levels.
- Reduce expediting costs - with optimized service parts inventory, there is no need to rush orders to customers.
- Minimize technician visits - if they have the right part in hand, they can fix the problem on the first visit.
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Components
Generally, service management comprises six different capabilities that companies should consider for optimization:
- Service strategy and service offerings
- Service strategy definition
- Service offerings definition and positioning
- Go-to-market strategy
- Service portfolio management
- Spare parts management
- Parts supply management
- Inventory management
- Parts demand management
- Fulfillment operations and logistics
- Service parts management
- Returns, repairs, and warranties
- Warranty and claims management
- Reverse logistics
- Returns processing
- Remanufacturing
- Field service management or field force effectiveness
- Technician enablement
- Mobility
- E-learning
- Activity scheduling
- Service billing
- Customer management
- Order management and availability
- Channel and partner management
- Customer insight
- Technical documentation
- Assets, maintenance, task scheduling, event management
- Remote monitoring
- Diagnostics and testing
- Asset management/optimization
- Configuration management
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