Executive Briefings

Business Intelligence Is a Must for Evolution of Service Supply Chain

With the current economic business pressure, reducing costs in the service supply chain without compromising customer satisfaction is a challenge which must be faced head on. Managing this balancing act requires business intelligence, which refers to the applications, tools, infrastructure and best practices that enable raw data to be transformed into significant information, and as such can be utilized to improve outdated processes.

Sadly, the current service supply chain model does not use business intelligence, but relies on a silo system, in which each area of the network, namely diagnostics and scheduling, parts, logistics, field service and repair, is run by a separate company.

Although the majority of companies working within the service supply chain use this silo model, there are major pitfalls to doing so which seem to be overlooked by the decision makers who strategically drive the agenda.

Glyn Dodd, managing director of service supply chain specialists Centrex Services, states such issues cannot be overlooked.

"We know the service supply chain model has been working inefficiently, with separate entities running each sector of the network. Unsurprisingly, the communication between these areas is often found lacking, as an issue which the diagnostics team are unable to resolve is simply passed on to the next stage, when in reality it may not have been necessary to do so," he says.

The current model invariably results in the deployment of field service engineers, regardless of the scale of the problem, due to a lack of business intelligence. The cost-effectiveness of such a system must therefore be scrutinized.

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Sadly, the current service supply chain model does not use business intelligence, but relies on a silo system, in which each area of the network, namely diagnostics and scheduling, parts, logistics, field service and repair, is run by a separate company.

Although the majority of companies working within the service supply chain use this silo model, there are major pitfalls to doing so which seem to be overlooked by the decision makers who strategically drive the agenda.

Glyn Dodd, managing director of service supply chain specialists Centrex Services, states such issues cannot be overlooked.

"We know the service supply chain model has been working inefficiently, with separate entities running each sector of the network. Unsurprisingly, the communication between these areas is often found lacking, as an issue which the diagnostics team are unable to resolve is simply passed on to the next stage, when in reality it may not have been necessary to do so," he says.

The current model invariably results in the deployment of field service engineers, regardless of the scale of the problem, due to a lack of business intelligence. The cost-effectiveness of such a system must therefore be scrutinized.

Read Full Article