Service management in the

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a r ...

context, is integrated into

supply chain management In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and stor ...

as the intersection between the actual sales and the customer point of view. The aim of high-performance service management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain. Most service-intensive supply chains require larger inventories and tighter

integration Integration may refer to: Biology *Multisensory integration *Path integration * Pre-integration complex, viral genetic material used to insert a viral genome into a host genome *DNA integration, by means of site-specific recombinase technology, ...

with field service and third parties. 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. Among typical manufacturers, post-sale services (maintenance, repair, and parts) account for less than 20% of revenue. But among the most innovative companies in service, those same activities often generate more than 50% of the profits.

Benefits

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 In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...

. * 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.

Components

Generally, service management comprises six different capabilities that companies should consider for optimization: * Service

strategy Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art ...

and service offerings ** Service strategy definition ** Service offerings definition and positioning ** Go-to-market strategy ** Service portfolio management *

Spare parts management Service parts management is the main component of a complete strategic service management process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time. Spare parts, ...

** Parts supply management ** Inventory management ** Parts demand management ** Fulfillment operations and

logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...

** Service parts management * Returns, repairs, and warranties ** Warranty and claims management **

Reverse logistics Reverse logistics encompasses all operations related to the upstream movement of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturin ...

** Returns processing ** Remanufacturing * Field service management or field force effectiveness ** Technician enablement ** Mobility ** E-learning ** Activity scheduling ** Service billing * Customer management ** Order management and availability ** Channel and partner management **

Customer insight A customer insight, or consumer insight, is an interpretation of trends in human behaviors which aims to increase the effectiveness of a product or service for the consumer, as well as increase sales for the financial benefit of those provisioning ...

** Technical documentation * Assets, maintenance, task scheduling, event management ** Remote monitoring ** Diagnostics and testing ** Asset management/optimization ** Configuration management

Benefits

Components

See also