Servigistics Functional Overview
As product margins dwindle under the intense pressures of global competition and increasing customer demands, the service delivered after the initial sale of a product is becoming increasingly strategic to revenue, profitability, and customer loyalty.
This is driving companies around the world to reexamine their often sub-optimized service businesses in search of creative ways to harvest more profits while efficiently delivering on their customer commitments. Leading companies increasingly understand that these objectives can only be achieved through a Strategic Service Management (SSM) solution — one that enables the integration, optimization, and efficient management of their core service business processes. These include: service resource planning, customer commitment management, service partner management, and service pricing management.
The Servigistics solution is the only comprehensive strategic service management solution that delivers value across the extended service network, including planning, pricing, and workforce. Clients across the spectrum of service-focused industries have achieved significant results using the Servigistics solution.
The Servigistics Strategic Service Management Solution leverages a scalable, flexible, Web-native, global architecture, and has been specifically designed to enable companies to drive profitable growth and improve corporate performance by:
• Effectively pricing service parts and service contracts to improve profitability and deliver more reliable revenue streams.
• Streamlining service operations to drive reduction in overhead and ongoing operating costs.
• Reducing investment in inventory to deliver cash back into the business.
• Improving part availability and customer satisfaction, recapturing incremental revenue from lost sales and asset down-time.
Elements of the Servigistics solution can be implemented individually to address a specific service challenge, or combined to provide a comprehensive infrastructure to deliver value across the service network.
The Servigistics offering includes:
• Servigistics Parts Management
• Servigistics Pricing
Service Parts Management is a process that ensures the right part is available at the right place at the right time, which is critical to the delivery of world-class service and maximizing revenue, profits, and customer loyalty. Service Parts Management is the linchpin of any effective service operation. It is the process of planning, forecasting and aligning service parts inventories, resources and processes to ensure optimal customer service levels with minimal risk and cost.
Service Parts Management can be used to reduce service business costs through:
• Reduced Planning Costs - By automating the service parts planning process, service planners can proactively plan rather that reactively expedite parts.
• Reduced Expediting Cost - By optimizing field stock, there is less need to rush parts to customer sites, thereby reducing expediting costs.
• Minimized Technician Visits - With the right part in hand, technicians can fix the problem on the first call and eliminate the costs of broken tickets and repeat calls.
• Reduced Inventory - The right stocking plan can reduce inventory levels by as much as 60%, resulting in less procurement expense, lower repair costs, reduced inventory carrying costs and improved cash flow.
• Reduced Obsolescence - Efficient management of the entire product life cycle reduces inventory obsolescence and write-offs.
• Part Repair Avoidance - With complete visibility of the service parts network, the correct field stock plan can be maintained which includes parts available from the repair loop which typically leads to a reduction in part repair.
Service Parts Management is specifically designed for implementation across the entire hierarchy of service parts locations, from central locations all the way to the smallest field stock locations such as technician trunks and parts kiosks. The Servigistics solution manages all parts across all locations in a single system, rather than the multiple system configurations offered by most service parts planning vendors. The result is that Servigistics delivers global parts visibility and maximum value with the lowest total cost-of-ownership, all through a single instance application and common database that allows for holistic analysis, strategy development, and implementation.