At our recent Client Event in San Jose, CA, client feedback expressed an overwhelming interest in our ability to apply statistical analysis to drive predictive segmentation targeting specific business problems, including the likelihood of:

• renewing warranty contracts
• submitting fraudulent claims
• purchasing service contracts
• successful (or unsuccessful) advanced exchange
• canceling unnecessary service truck rolls

Clearly, applying a more intelligent, efficient solution to address these significant challenges provides unprecedented cost savings, as well as improvements in perceived customer service.

In the coming weeks, we will be elaborating on our current work with clients in some of the other vertical markets we serve to drive transformative change through advanced data analytics.

We invite you to stay tuned! In the meantime, contact us if you would like to learn more about how these methodologies could be applied to your business challenge.

–sk

OnProcess recently organized a panel discussion on Service Supply Chain Optimization (SSCO) as part of a full-day Client Event in San Jose, CA. The panel members were distinguished service leaders from major technology companies. The scope of the discussion was based on challenges the technology companies are facing in optimizing their service businesses, how they are measuring the success of their operations and key learning that could be leveraged by others. The main components of service business – spare parts, labor, logistics and administration of the service process were discussed. Some key points from the discussion are highlighted below:

• End to end service functions can span across multiple groups (in medium to large companies) or may be all rolled into one group (in small companies). But regardless of size, there is need for end to end visibility and analytics across the service chain. While SLA fulfillment is the biggest metric for service management, there is a need to identify other key metrics and analytics to effectively manage the business. The panelists indicated that they would like to optimize all sub-processes from order capture and entitlement to the asset recovery at the end. There is a need to establish key “value-drivers” for each service business and then tracking them rigorously.
• Dispatch of parts can be made effective as one analyzes the transactions carefully and creates appropriate business rules. For example, a 4 hour SLA dispatch request created at 2 am in the morning may lead to a part dispatch immediately. In reality, that part may not be even received at that time as no one will be available at the customer site and will have to re-delivered resulting in higher cost. Setting up a process to catch such dispatches and follow an alternative workflow will result in savings without impacting SLAs. While this is one example of exception management, having a business rules engine that drive dispatches and integrates with the client and 3^rd party systems will result in higher SLA fulfillment and creation of efficiency in the service lifecycle.
• Predictive analytics can be used to identify dispatches that are potentially “repeat dispatches” or “unnecessary dispatches”. The clients and OnProcess have encountered scenarios where a part has been ordered but not utilized within the expected timeframe. Preventing such scenarios will result in savings in inventory cost and logistics cost. Typically the recovery of the used part is more effective when such dispatches are prevented.
• OnProcess presented a predictive analytics model named PTR™. There is a strong desire to leverage the PTR™ methodology and data analytics in general to help drive asset optimization across the end-to-end life cycle.
• Putting controls around self-service RMAs is important to ensure part dispatches are made correctly. OnProcess shared an approach where self-service RMAs are handled through a centralized back-office equipped with business rules to ensure accurate and timely dispatches.
• One of the discussion items focused on how part dispatches without engineering team’s involvement can be made more effective. Can some diagnostics be incorporated at the helpdesk level so that a certain percentage of part dispatches be made without taking the bandwidth from the engineering team? Approaches for putting diagnostics in a Triage engine were discussed.

A very active set of participants made the panel discussion energizing and full of ideas. We welcome more thoughts from our clients, as well as others, on these topics.

We would appreciate your participation in this 15-20 minute survey. To thank you for taking the time to participate in this survey, Aberdeen will provide you with a complimentary copy of the resulting benchmark report which will be available in early May 2013. Individual responses will be kept strictly confidential, and data will only be used in aggregate.

Please click on the link below in order to participate in Aberdeen’s Service Parts Management survey:
http://www.aberdeen.com/survey/0574_SPM2013_D

In a recent article about the Medical Device Tax published in the Boston Business Journal, Tom Sommer, president of MassMEDIC, remarks “Some (device companies) will pass it on to hospitals with a line at the bottom of the bill highlighting how much of the cost will go toward the excise tax. Others will absorb the loss through cuts elsewhere. There are companies that are reducing the costs in other areas, most notably in research and development,” he added. “Also, they are looking at off-shoring manufacturing and looking at reducing the workforce… They don’t have any options.”

But there are ways to help offset the lost revenue.

With increasing cost pressure from eroding margins along with the impacts of the device tax, medical device manufacturers can benefit greatly with OnProcess SSCO (Service Supply Chain Optimization) offering. With the ability to drive 39% cost reduction in post service order management, 11% cost savings in labor reduction alongside a 12% decrease in inventory CapEx, we can and do offer our clients in the Medical Device industry a way to cut costs significantly, helping to defray the need for research cuts and/or workforce reductions.

Growth and profitability are paramount for every organization – and we help our clients achieve that by successfully delivering operation excellence in the service supply chain. To learn more about OnProcess SSCO, please visit this page – where you’ll be able to download our White Paper and view a brief audio/visual explanation. You are also welcome to contact Carolyn DeVasto at (508) 520-2711 extension 2103, or by email.

One of the latter is Daniela Dolaptchieva, who joins the OnProcess EMEA team as the Manager of Human Resources.  Daniela will administer all Human Resources activity at the Sofia Center of Excellence and serve as the primary HR contact for all Center customers.  Daniela bring over 10 years of Human Resource experience having held HR positions in the fields of technology, manufacturing and retail.  Daniela holds a Master Degree in Economics from the University of National and World Economics and a Masters Degree in Human Resources from the New Bulgarian University.

We will follow up shortly with a common contact point for applications specifically directed at EMEA positions. “Watch this space!”

In addition, we are pleased to announce the creation of the OnProcess Reporting, Quality and Process Development Center of Excellence, which will be located in Sofia. The Reporting, Quality and Process Development Center of Excellence will be responsible for providing a global reporting capability in support of OnProcess’s clients and internal operations globally.  The COE will also be responsible for designing and implementing the Quality Assurance Program for EMEA, which will initially be focused on a CSR engagement with client HP.

If you would like to learn more about our capabilities in EMEA (and the rest of the world), let us know by completing the form below, or to the right; or by visiting http://www.onprocess.com/contact.php

One such program, which debuted in early 2013, has already shown very positive outcomes.

The program includes goals to improve several metrics applicable to service events, including:

• Increase service event cancelations
• Decrease unnecessary truck rolls
• Reduce lead time for service event requests
• Minimize the need for rework
• Deliver analytics and reporting to identify process improvement opportunities
• Utilize data intelligence to implement a predictive vs. reactive approach

Early results (30-45 days) show significant improvements over a control group consisting of the client’s current systems and procedures. In terms of overall service order cancellations prior to a scheduled service date, the OnProcess-actioned group provided a five-percentage-point improvement over the control group. With a control group average cancellation rate of 10%, the OnProcess group’s 15% average means an improvement of 50%.

In addition, OnProcess’ approach provided a one-percentage-point reduction in the number of service calls which resulted in a customer “not home”; which represents an improvement of 20% versus the control group’s 5%.

These are just early results, but with the adoption and increased role of our Triage 360 troubleshooting and diagnosis, the continuous learning and improvement provided by the system will likely drive even better results overall for the client MSO.

–sk

Most recently, she was Director of Customer and Channel Marketing at Covidien, where she developed objectives, strategies and demand generation activities for their top 72 strategic accounts.

Carolyn will be overseeing sales and strategy for the Medical Device vertical, with a focus on shaping the company’s Service Supply Chain Optimization (SSCO) suite of solutions for the post-sales service operations of those companies. She will also be broadening the awareness and availability of the company’s new OnProcess Shared Services (OPSS) offering for emerging growth companies.

She can be reached at (508) 520-2711 extension 2103, or at cdevasto (at) onprocess (dot) com

Product returns of consumer electronics have been, and continue to be, a costly component of doing business for both retailers and OEMs. With margins continually squeezed and high competitive pressures, the load of handling a return can be devastating to financial results. Further, the experience of a return, for reasons of malfunction, difficulty in operation, or just buyer’s remorse can sour a customer against the retailer and/or the manufacturer’s brand.

What’s worse is that, in most cases (often over 90%), the returns are eventually categorized as “No Trouble Found” (NTF), meaning that they are NOT due to equipment defects. Therefore, they likely could have been avoided.

OnProcess has, for some time, provided programs that have successfully reduced return rates through proactive outreach following the sale. By reaching out soon after a purchase, often within 24 hours, our team has an opportunity to engage with the customer and, through that event, provide product assistance and education that can transform a likely unhappy return into a happy product user.

Now, through a new and unique approach using data analysis and statistical modeling, we can reduce the number of outreach efforts by identifying those customers with a high Propensity-to-Return™ . This process also incorporates feedback from engaged customers to inform our clients, and provide continuous improvement in product design, launches, point-of-sale and marketing efforts and manufacturing processes.

New White Paper Available: Returns Reduction

If you would like to learn more about OnProcess Technology’s Returns Reduction programs and the Propensity-to-Return™ model, let us know by clicking this link and asking for the Returns Reduction White Paper.

–sk

We’ve been pushing the envelope of late for our clients in the Broadband MSO space. Using our People, Process and Technology capabilities we’ve developed, and are currently achieving breakthrough results with, a service designed to proactively avoid unnecessary service visits and truck rolls.

The Typical Challenge in Avoiding Truck Rolls

MSOs are constantly seeking ways to avoid the expense of service visits and truck rolls wherever possible. Most approaches, however, merely involve calling every customer to confirm the service visit, with the hope that some percentage of the calls will reach the customer and that, in some of those circumstances,  the issue can be resolved prior to the truck roll. This approach has some, but limited success.

The OnProcess Technology Approach to Avoiding Truck Rolls and Reducing Costs

What OnProcess brings to the challenge is a three-pronged solution:

1. Application of advanced data management and outreach techniques. We use data management to identify priority cases for outreach and, using our sophisticated multichannel processes, get higher customer contact rates.
2. Use of our proprietary Triage system. For those cases where we reach the customer, our customer contact specialists utilize an automated triage system which starts with the MSO’s own questioning but then, through the ongoing acquisition of response data, creates a predictive model and knowledge base which more quickly and more often provides a solution, avoiding a costly service call and improving the customer experience.
3. Use of Data Analytics to drive continuous improvement. As time goes on and more data are gathered and analyzed, we are able to further predict those calls which are the most important, and most likely to be resolved without a service call. As a result, truck roll avoidance rates go up while fewer outreach efforts are necessary – driving costs down in two areas!

Results

Our MSO clients are realizing significant benefits in several areas:

• Increase in Truck Roll Avoidance Rates
• Reduced Resolution Times
• Improved Visibility into Resolution Issues
• Improved Customer Experience

Let us know if you’d like to learn more about these capabilities in your service operation.

–sk