Service Matters from MCA Solutions

With an estimated 200 million blogs out there, it's hard to believe that so few are focused on the service world.  This post provides a quick overview of the blogs related to aftermarket service, as well as some broader reaching supply chain and IT information

Here are some links for complementary software companies that are components of a comprehensive strategic service management solution such as:

• Axeda's Remote Service Blog focuses on areas related to remote diagnostics and smart service
• Enigma's Uptime Blog blogs about the challenges and opportunities in the MRO world
• The Servicepower blog and ClickSoftware's Clickipedia are focused on field service planning and optimization
• The SAP Developer Network (SDN) has a wiki focused on service parts planning and the Ecohub provides information on SAP partners solutions

Other well-read service supply chain blogs include:

• Spplan from Shaun Snapp, a former Deloitte consultant who's focused entirely on service parts planning with a particular emphasis on software functionality and related issues. Shaun recently wrote a very interesting post on the opportunity for service planning for 4PL's.
• Service Strategies - a consulting firm with a blog dedicated to the service business
• Service Research & Innovation Institute's blog writes on executive issues related to service management

The Reverse Logistics Association  frequently updates its Web page on industry news and summaries are in a monthly newsletter.

In the service logistics world, Logistically Speaking focuses on service execution and the interaction with planning. 

Several of the supply chain and sourcing analysts also cover the service space, including:

• PJ Jakovljevic of Technology Evaluations, who's written several entries on the service space.
• Michael Lamoureux of Sourcing Innovation who's posted deep coverage of service supply chain areas
• Jason Busch of Spend Matters, who's a sourcing specialist
• Bob Ferrari of Supply Chain Matters focuses on traditional supply chain and writes occasionally on the service supply chain.
  (thanks Jason & Bob for the inspiration for the naming of Service Matters!)

We'll continue to monitor and update our blog roll and post and comment on entries of interest as they occur.

Service Management 365 just published an interview with Jean-Pascal Bobst talking about the expansion of their service business and the long term plan for continued investment in technologies that will deliver efficiencies to their business.  Mr. Bobst is the CEO of the Bobst Group (http://www.bobst.com/), a $1.3B revenue market-leading Swiss company that manufactures and services packaging equipment globally.  In the article, Bobst discusses the evolution of their service business and the major gains in efficiency they have gained in efficiency through implementation of service planning software.

Mr. Bobst was the executive sponsor of the project which involved consolidation of the global support organization through integration of MCA's Service Planning and Optimization suite () with multiple ERP systems across the Bobst businesses.  The single integrated system is now tracking and planning hundred thousands of parts worldwide, with strategic forecasting for long-term performance improvement.

The success of the project is a credit to the executive involvement at the highest level and the recognition that service performance is critical to the long term success of the company.  

What is unfortunate is that despite the compelling importance of service for manufacturing companies, not more CEO's are driving continued investment in service.  Morris Cohen's whitepaper on "The Value of Service in a Down Economy" describes why service is important, especially in this economy and lists six specific areas of opportunity to generate revenue and reduce costs and is something you can send to your executives to help make a case for continued investment in service initiatives.   A summary of some of the key initiatives:

• Create new service offerings:  Customers have widely varying needs for service.  Determine the potential cost and profitability of service offerings and put in place programs that will increase customer satisfaction and drive revenue.
• Optimization matters:  Multi-echelon inventory optimization developed for service parts environments can reduce inventory to significantly lower levels than traditional planning tools and dramatically increase working capital.
• Outsource non critical functions:  Logistics has been a typical area for outsourcing, consider outsourcing areas like application management through Software as a Service (SaaS) offerings that bring faster time to value with fewer IT resources

Aftermarket service does indeed matter to manufacturing companies, and we will do what we can to make sure that more CEO's realize it as Mr. Bobst does.

As a software vendor with 100% focus on service planning, service obviously matters to MCA.  But in today's economic climate, most manufacturing companies are also recognizing that service really does matter, especially as new product sales continue to decline. 

Many manufacturers are now relying on service to drive consistent revenue and customer retention, which is, in part, what drove a 25% increase in MCA's customer base last year.  The availability of Software-as-a-Service (or SaaS) offerings that allow rapid implementation of systems for improvement with lower up-front costs also contributed to the company's growth.

With more companies focused on improving service, we've launched this blog to:

• Highlight leading research and best practices in aftermarket services
• Provide a forum for blogs, articles, and news about strategic service management
• Cover conferences and gatherings focused on the service world
• Share updates on business, general supply chain, IT, and industry news as they relate to service

In future posts, we'll cover many interesting topics including performance-based contracting, software-as-a service, and other business and IT trends related to the service business.  You can join us by registering to receive blog updates  and participating in our open forum.