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:
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…
Transforming Field Service into a Profit Powerhouse - Spencer Earp (ServiceMax) - Service Management Expo, 19 June 2014
Transforming Field Service
into a Profit Powerhouse
Spencer Earp, Vice President EMEA
1. Industry Data
2. Service in the Spotlight
3. Case Study
0% 10% 20% 30% 40% 50% 60%
Metrics to Improve in 2013
Metrics in focus for 2013. Percentage of Respondents, n=226
TSC Data, June 2013THE SERVICECOUNCIL. NOT FOR DISTRIBUTION.
Source: Aberdeen Group, December 2012
Drive Service Revenues Drive Service Resource
Next Most Important Goals
I want more
I want higher
I want more
Oh – and save 5%
costs this year.
And the CEO says…
Service is Changing –
and Changing Fast…
Cost Center Profit Center
Now Service is in the spotlight
Where are Coca-Cola Enterprises?
17 manufacturing sites
$8.1 billion revenue
12 Billion bottles and
cans per year
170 million consumers
Coca-Cola Enterprises is
the leading Western
distributor and producer
of non-alcoholic beverages.
It is one of the world’s
largest independent Coca-
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
Expand into paid service on
non CCE equipment
Technician working day…
was the focus, but analysis
showed ADMIN was the
Old system inefficient
Technicians & response time slow
Archaic service logging & loss of
real time information
Revenue Loss due to billing errors
Mobility optimizes capabilities
No boot up or
Automated data transfer
Admin time reduced dramatically
After ServiceMaxBefore ServiceMax
Increased On-site Time with Customers
Achieved first goal:
increase on-site time
Platform for next goal:
increase efficiency on-site
2012 P7 P8 P9 P10 P11 P12 2013 P1 P2 P3 P4 P5 P6
Average Jobs Per Day