They also must accommodate inconsistent and uncertain demand by establishing more advanced information and product flows. Moreover, all processes must be coordinated across numerous service locations with large numbers of parts and multiple levels in the supply chain.
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.