Consider Parts Inventory Management When Selecting A Field Service System

Posted Jun 5, 2013 12:43:23 PM by DecisionPoint Team & filed under

Optimizing parts levels can be both an intimidating and difficult task, especially while balancing location and stocking levels. Automating your Field Service provides immediate visibility to inventory – in the warehouse, in transit on your vehicles, at a customer’s job site or in the hands of a service technician. Gaining access to accurate inventory of parts allows companies to improve forecasting, balance stocking levels, and quickly respond to the immediate demands of their respective business.

It is important to consider parts inventory management for the following reasons:

  • 90% SLA compliance vs. 38% followers
  • 52% of calls require parts management
  • Leaders 62% more likely to use parts data in dispatch (60% vs. 37%)
  • Leaders 58% more likely to use software to integrate field service with parts management initiatives

Data from Aberdeen Group Analysts Insight : “People and Parts Linked Together to Solve Customer Issues” Nov 2012

Why Automate Field Service Workforce?

  • Best-in-class field service operations:
    • ~8% more work orders/day than average performers
    • 12.5% higher service level agreement (SLA) compliance
    • 2.5% more profitable
    • 88% of best in class use some type of mobile technology

Reduce “Lost” Assets and “Missing” Inventory

  • Expensive assets can be easily tracked
  • Inventory is better controlled
  • Ultimate reduction in lost assets and “missing” inventory

Improve Work Order Scheduling

  • Work orders can be scheduled by technician
  • Take into account tech skill, inventory, job location
  • Results in less miles traveled per tech per day
  • Results in more billable technician time

Improve Driving Route

  • Daily work order schedule is known
  • Driving route optimized using turn-by-turn
  • Results in less miles traveled per tech per day

Reduce Days Sales Outstanding (DSO)

  • Work order completion reported immediately
  • Quicker invoicing
  • More accurate invoicing – less disputes

Reduce Inventory and Spares

  • Warehouse and truck inventory is more accurate
  • Reduced inventory level possible due to more correct inventory and less safety stock (reduce “JIC” inventory)

Operational & Financial Improvements (Average Improvement)

Mean Time to Repair (21%)

First-Time Fix (20%)

Workforce Productivity (22%)

Ticket Close Out Times (24%)

Overtime Costs (13%)

Inventory Carrying Costs (19%)

Call Center Support Costs (17%)

Total Service Costs (16%)

Service Profitability (17%)


Area of ROI

Reduction in Lost Assets or Inventory

Improved Work Order Scheduling

Improved Driving Route

Reduced Days Sales Outstanding

Reduction in Inventory and Spares

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