Equipment Servicing Example

Computerized Service System Cuts Back-Office Time 35 %
for Restaurant Equipment Distributor

Ed's Equipment Company has cut the back-office time required to manage its restaurant equipment and service business 35 percent by automating service, spare parts, and equipment sales. The previous computer system required each order to be entered separately into a series of stand-alone databases used for dispatching, spare parts inventory, and invoicing. With the new integrated system, the information entered into order entry automatically flows through to invoicing, parts inventory, and general ledger applications.

Ed's Equipment is an exclusive distributor for Taylor Company equipment used by restaurants to make soft-serve ice cream, yogurt, milk shakes, sundaes, slush, and frozen carbonated drinks. The company sells and services equipment to many leading restaurant chains and its territory includes Florida ant the Caribbean islands. Ed's has 15 salespeople who handle new and used equipment sales and 15 service employees, each of whom carry $20,000 worth of spare parts.

In the past, the company used a computerized holding system consisting of a series of stand-alone databases. The dispatching clerk would enter the work order into a database and give a copy to the service person. Within a few days, the service person would do the work and write down on the work order which parts were used. The service person then mailed the completed work order back to the closer. The closer made four copies. One copy was used to generate the invoice, and the second was sent to the customer along with the invoice. The third copy went to the parts department. A parts technician then pulled parts from the warehouse to replenish the service person's truck. The fourth copy was filed by the dispatcher. This process was necessary because the service call application did not interface with the accounts receivable, inventory, and equipment applications.

Ed's began looking for a new system that would reduce the amount of paper handling. A consultant was hired to assist in the selection process. He picked four systems that looked promising and made a detailed examination of each. The goal was to find a system that provided nearly all of the needed capabilities "out of the box" without modification. The idea was to minimize customization cost and simplify the process of integrating program updates. The consultant selected the Excellence Series from SouthWare Innovations, Inc. because it offered the most extensive service management capabilities, had the best reporting features, was the fastest package, and runs both UNIX and MS-DOS.

The VAR only needed to make a few changes from the standard system and these were relatively easy to accomplish. The biggest was to accommodate the company's practice of immediately replacing parts used by service people from their truck. As soon as the work order is closed, parts used on the job are electronically moved to the inventory program for picking and replenishment. The program keeps track of which warehouse the service person works out of and directs the ticket to the proper one.

Here is how the new system works. Suppose a customer from a national account calls and says that they need service at store number 17. The dispatcher calls up the account and checks this with the customer. The dispatcher asks the customer what the problem is and enters that into the work order. Then the dispatcher calls the service person on a 2-way radio system and directs them to the customer's site. When the service person is done with the call, he or she calls into the office and asks for the closer. The service person tells the closer the job number, the location, the time spent on the job, and the part numbers that were used. The closer enters these figures and pushes a button to close the call. The information is automatically transferred to the accounting and inventory modules. The invoice prints automatically in the accounting department and a pick ticket containing the items that need to be replaced in the service person's truck prints out in the proper warehouse. The parts technician puts the parts in the service person's locker, or if he/she is too far away to come in on a regular basis, mails them.

The new system saves about 35 percent of the labor previously required to manage the back office, because it eliminates the need for re-entering data in the various applications and distributing records between the various departments. While it would be possible to reduce the back office staff, Ed's instead is maintaining the present staff in order to prepare for growth of the business. The improved productivity provided by the system will make it possible to meet the company's sales objectives for the next five years without adding any back office staff.

The new system also provides drastically improved reporting capabilities. Managers are able to get a much better grasp on the pulse of the business. They can track what is happening at any moment down to the level of the individual job site. Being able to get this information makes it possible to identify problems before they become major.

Sales managers look at the service record of accounts in the first six months after new machines have been delivered. If the restaurant has one service call on a new machine that's generally not a problem. If there have been several calls, then the salesperson is told to get back in touch, see what the problem is and make sure it is resolved. Customers appreciate this type of attention. And, this is a further step toward excellence in customer service.

Reports on parts usage and inventory levels have helped the company to improve inventory turnover. Tracking the parts that have been used gives the parts people a better idea of what the people a better idea of what quantities to stock of each part number. Sales people also make use of inventory reports. While a customer is on the phone, they can call up on their terminal a real-time report on the availability of supplies.

The ability to track service jobs by person makes it possible to help the service staff improve their skills. Tracking individual technician's performance on past jobs on different types of equipment makes it possible to determine who is better equipped to do certain tasks. These reports also identify service people who have problems working on a certain type of equipment by tracking call backs. Management might then send a senior service technician to work with them for a day or two.

The system also has helped to improve the performance of the sales force. Every month a prospect report is generated that indicates the status of every live sales lead. Accounts that are sold automatically move off the prospect list and onto the customer list. These reports also indicate progress during the month including sales calls, as well as the salesman's estimate of when the sale will take place. The sales people find this report extremely valuable in helping them to direct their efforts. Sales people also use service reports to look for restaurants that have older equipment with frequent service calls. They are often candidates for purchasing new equipment.

The company's management plans to tie this system in with an improved wireless system that will communicate with lap tops carried by the service people and allow them to close calls without any interaction at the home office. The service person will also be able to access the system to determine the location of spare parts or to call up technical information such as a wiring diagram.

The labor savings as well as other efficiencies provided by the SouthWare system are expected to pay back its cost in the one-year time range. Because of its success, the system has also installed at other dealerships in the U.S. It has the flexibility to adapt to the different modes of operation for many types of service-oriented businesses.

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