How to Make Real Money Out of Your Field Service Team
Australia recorded the first trade surplus in two-and-a-half years, according to figures from the Australian Bureau of Statistics. The seasonally adjusted balance for the three months to March 2014 was a surplus of $3.110 million, a turnaround of $4,188 million on the deficit of $1,078 million for the three months to December 2013[1].
Mining and the agribusiness sector continue to be major contributors to Australia’s export growth, despite the slowdown in China’s growth.
However, what steps are being taken to maintain and enhance the performance and productivity of the operations of these two crucial business sectors? Particularly in the context of continuous commentary that the glory days of the mining boom have come to an end and iron ore trading at less than $100 per tonne.
Service Delivery, the silent partner to our mining and primary production stars, has the potential to lift company performance significantly, not only contributing significantly to our Australia’s economic performance.
We often focus on the cost efficiencies associated with a ServiceMax implementation. But there is often a revenue impact as well, and this can make your stakeholders wake up and see the light.
According to a study in the Journal of Marketing, companies that generate more than 30 per cent of their revenue from service, achieve a higher market value, with better margins and profitability than competitors who do not leverage this aspect of their business[2]. As an example, a large farming equipment manufacturer saw a 25 per cent increase in aftermarket parts and service sales after implementing incentives for service managers[3].
We can take it a step further and put tools in the hands of Field Service not just the Head Office team. Understanding the true meaning of ‘remote service’, ServiceMax helps mining, oil and gas companies – such as oilfields, service providers, exploration and production companies – deliver fast and effective service by effectively managing preventative maintenance, scheduling, parts, work orders, rental tools, and by maximising the productivity of your mobile workforce.
Field engineers and service providers can access the company knowledge base from anywhere at any time to fix potential issues when onsite, using any mobile device. This support for mobile service management enables field engineers to accurately debrief the client on the service fix and invoice for the service in the field. They can even quote for new items.
ProQuest Consulting has dealt with one company that has made a $1 million improvement to their bottom line. This result was achieved by automatically including spare parts in field-generated quotations (based on certain business rules). The price tag may be lower than a dollar per item, but the marginal effort to add each item is negligible. With thousands of quotations required each month, the impact straight to the bottom line is considerable, not to mention the reduction in workload back at HQ.
What do we offer to companies who are serious about improving the performance of their field service business?
ProQuest Consulting is the strategic implementation partner for ServiceMax in Australia and New Zealand. Having successfully implemented ServiceMax for best practice companies in the safety and security sectors, ProQuest Consulting is looking to extend the lessons learned from these implementations to support Australia’s mining and agribusiness companies in continuing their contribution to our nation’s international trade and economic prosperity. Using our Agile approach to project delivery, we ensure an efficient and rapid implementation of ServiceMax and a reduction in your project risk.
[1] Source: ABS March Figures http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5368.0Main Features2Mar 2014?opendocument&tabname=Summary&prodno=5368.0&issue=Mar 2014&num=&view=
[2] Source: ServiceMax 7 ways service culture can drive revenue http://lp.servicemax.com/rs/servicemax/images/7_Ways_Service_Culture_Can_Drive_Revenue.pdf
[3] Source: ServiceMax 7 ways service culture can drive revenue http://lp.servicemax.com/rs/servicemax/images/7_Ways_Service_Culture_Can_Drive_Revenue.pdf
