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Among typical manufacturers, post-sale services (maintenance, repair and parts) comprise less than 20 percent of revenue. But among the most innovative companies in Service , those same activities often generate more than 50 percent of the profits.


DEVELOPMENT

Traditionally overlooked as a ‘necessary evil’, Service Management is moving to the forefront as a business strategy. To maintain growth and customer loyalty in a competitive environment, leading companies are now recognizing the need to improve Service and Service Parts Management capabilities.


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.



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 & Positioning

  • --- Go-To-Market Strategy

  • --- Service Portfolio Management


  • Spare Parts

  • --- Parts Supply Management

  • --- Inventory Management

  • --- Parts Demand Management

  • --- Fulfillment Operations & Logistics

  • --- Service Parts Management


  • Returns, repairs and warranties

  • --- Warranty & 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 & Availability

  • --- Channel & Partner Management

  • --- Customer Insight

  • --- Technical Documentation


  • Assets, Maintenance, Task Scheduling, Event Management

  • --- Remote Monitoring

  • --- Diagnostics & Testing

  • --- Asset Management/Optimization

  • --- Configuration Management



LIST OF SERVICE MANAGEMENT SOLUTION PROVIDERS


Major vendors of Service Management solutions (in alphabetical order) include:



SEE ALSO



EXTERNAL LINKS