Blog Series IV : Service Management

Service management is part of supply chain management which is the intersection between the actual sales and the customer point of view. High-performance service management aims 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 more extensive inventories and tighter integration with field service and third parties. They also must accommodate inconsistent and uncertain demand by establishing more advanced information and product flows.  Present-day manufacturing houses rely on the service for 505 of their income.


The main drivers for a company to establish or optimize its service management are as follows:


  • high service costs reduced by integrating the service and products supply chain
  • inventory levels of service parts can be reduced and therefore reduce total inventory costs
  • improving customer service quality
  • results in better service revenue
  • reduce obsolescence costs of service parts through improved forecasting
  • improve customer satisfaction levels
  • reduce expediting costs
  • Minimize technician visits

Microsoft Dynamics 365 Business Central is the tool through which a company can optimize inventory, avert overstocking or stock out the situation, and improves the correct quantity at the right time with service management.

Service Management with Microsoft Dynamics 365 Business Central

  1. Planning and Dispatching

Assign personnel to work orders and log details such as work order handling and work order status. For dispatching, manage service personnel and field technician information, and filter according to availability, skills, and stock items. Gain an overview of service task prioritization, service loads, and task escalations.

  1. Service Contract Management

Set up agreements with the customers about service levels:

  • Maintain information on contract history, contract renewal, and contract templates.
  • Manage warranties for service items and spare parts.
  • Record details on service levels, response times, discount levels, and the service history of each contract, including service items and parts used and
  • labor hours.
  • Measure service contract profitability.
  • Generate service contract quotes.

 

  1. Service Item Management

Record and keep track of all your service items, including contract information, component management, and BOM reference and warranty information. Use the Trendscape Analysis feature to view key performance indicators for service items during various periods.

 

  1. Service Order Management

Register post-sales issues, including service requests, services due, service orders, and repair requests. Let customers initiate service requests or create them automatically according to the terms of service agreements. Register and manage equipment loans to customers. Get a complete history of service orders and service order quotes through the Service Order Log.

  1. Service Price Management

Set up, maintain, and monitor service prices. Set up price groups based on criteria, such as the service item (or several item groups), the service tasks, or the type of fault for specific customers or currencies. Define price calculation structures that include all parameters involved in providing service, such as the parts used, the types of work, and the service charges. Automatically assign the correct price structure to service orders that match the price group criteria. Assign fixed prices, minimum prices, or maximum prices to price groups and view statistics about profitability.

As companies look for innovative ways to respond to changing customer demands, service management becomes critical.  For better service management, upgrading ERP infrastructure is necessary. Microsoft Dynamics 365 business central provides a handy approach to deal with the service management needs through an integrated business support system. Microsoft Dynamics 365 business central is a cloud business application supported through a network of partners like SIROCo. At SIROCo, we have over a decade of experience serving small to medium-size businesses with all business needs, including supply chain and project management. We support the unique needs of companies and have the expertise to customize Microsoft Dynamics 365 business central to fit your specific needs.

 

 

Reference

  1. Microsoft Dynamics 365 Business Central Capability Guide: by www.microsoft.com