Companies Should Aim for A Minimum of Four Stock Turns Per Year and Hold an Inventory of 10 Percent of Total Revenue or Less
11 April 2016 – London, U.K. – Top level parts profitability should be measured in the field rather than the warehouse, and on average, companies should be aiming for a minimum of four stock turns per year and holding an inventory of ten percent of total revenue or less, according to field service management specialist ServiceMax.
Yet more often than not, when faced with a spare part problem, service engineers typically order more than they need and keep a few spares to hand, creating unnecessary cost to the business, impeding cash management, and resulting in idle capital.
“Stock on the shelf is spent money,” said Dave Hart is Senior Vice President of Customer Success at ServiceMax. “Decreasing inventory while increasing first time fix rates is the Holy Grail in service. Thanks to automated field service management, it’s not just possible, it’s now becoming common place.”
It used to be the case that inventory management was tracked and measured in the warehouse and expensed on distribution - great for the accountants but not good for seeing how, where and when parts are consumed, or gaining P&L insight by customer or contract.
But thanks to intelligent automated field service management software, behaviours and requirements can now be measured in the field, rather than just the warehouse. Granular insight into stock costs hidden in different budgets, visibility and accountability at the individual technician level, higher first time fix rates, lower provisions, fewer emergency shipments, increases first time pick rates, greater efficiency which increases customer satisfaction, and lower freight costs are just some of the reasons fuelling demand for field service automation globally.
ServiceMax leads the massive global industry of field service management software -- an $18 billion market worldwide. The company continues to reimagine and create solutions for the 20 million people globally who install, maintain, and repair machines across dozens of industries as the only provider of complete end-to end mobile and cloud-based technology for the sector. ServiceMax goes to every length -- from joining technicians on service calls to publishing the industry's leading online publication -- to help customers discover untapped innovation, unleash new revenue streams, drive efficiency, and most importantly delight their end-customer. To learn more, please visit www.servicemax.com.
ServiceMax Media Contact:
+44 (0)7768 693779
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