Another Proven Impact Service Supply Chain Program: Successful Rescheduled Installations
Authors: Dan Gettens and Pedro Cueva
Optimizing the Service Supply Chain (SSC) through Revenue Enablement may be the next opportunity for market leaders to drive competitive advantage. However, few market leaders in Broadband / Cable, Technology, Wireless and Medical Device markets rate their performance as superior across the wide range of SSC and Aftermarket processes.
This is not unexpected. The Service Supply Chain both for B2C and B2B is wide in scope, complex and dynamic. SSC includes all the people, processes and technology for servicing the end customer after the sale.
When focusing on the period after the sale, but before revenue can be recognized, there are myriad possibilities for leakage, breakage and cancellation for various reasons. We call this portion of the Service Supply Chain Revenue Enablement.
There are many services within the category of Revenue Enablement that OnProcess provides to its client companies. One such example, often employed in the Broadband MSO space, is Rescheduled Installations. Let’s start with an example of a Company in the B2C Broadband Market. A high percentage of the Company’s scheduled installations get cancelled and are not rescheduled. In general, even with good planning, it is likely that some installations will get cancelled by customers – as inevitably as some customers decide to return products after the sale.
What are some of the implications of cancelled installations?
- First and foremost, the delay, deferral or loss of the revenue and operating cash flow from the sale
- Technicians are under-utilized
- The cost of service may increase
- Customers have a higher risk of switching to competitors
- The impact can cascade across the entire Service Supply Chain
What factors make the difference in driving improvement? Consistent process planning and management, the application of Lean Six Sigma practices, and large-scale Analytics can result in identifying new opportunities for improvement that make a strategic difference.
What are the key steps?
- Documentation of the client problem-to-be-solved
- A quality check on the data
- Clear process definition
- Establishing Baseline Results and Target Goals
- Calculating economic value that can be realized
- Setting up a randomized control trial
When applying the OnProcess methodology (including process management and process metrics during a randomized control trial), the outcome was a 40 per cent higher volume of successfully rescheduled installations. Projecting the future revenue flows that were accelerated or saved through this process, even with only a one-year projected subscription life, the net increase in operating cash flow is stunningly impressive, with a huge projected ROI net of our cost.