For equipment dealers and companies that manage large service operations, service-to-cash
John Cameron is general manager of Trimble Field Service Management (FSM), where he is responsible for worldwide operations and development.
cycles can be a headache.
If there is a breakdown or bottleneck in the process, significant payment delays often occur.
How can inconsistencies between the work hours paid to technicians and hours available for billing customers improve? What is the best way to accurately bill for parts used? How can companies make sure they are not giving away technician time on “service freebies” when he or she arrives onsite? And most importantly, how do you reduce the lead time from job completion to invoicing?
The clock for service-to-cash starts as soon as a technician is assigned a task and continues until the dealership or company can recognize the revenue. The Aberdeen Group states that the average service-to-cash cycle is 34 days, with best performers able to reduce this to around 26 days. Following the three-step “manage, mobilize, monitor” process can help dealers increase efficiency and generate revenue faster.
Manage all-encompassing
Effectively managing service-to-cash has to be an all-encompassing service workflow solution — one that is fully integrated with other systems, such as enterprise resource planning solutions, telematics devices, and customer relations management platforms. This should include a workflow that communicates in real-time with every other part of the business and allows for streamlined business processes that are repeatable, predictable and instantaneous. When done right, companies get service revenue into their business as quickly as possible.
Mobilize for more profits
Allowing service technicians to capture parts actually used and change work orders to accurately reflect what services were performed onsite, in real-time, means that no profit is left on the table. All too often, a technician will arrive at a job and only then find out that there are actually multiple items that require a fix. Additionally, a technician unable to perform some preventative maintenance at the same time wouldn’t need to plan a return trip. Mobile service apps give the technician flexibility to pass this information back to the office at the push of a button.
Monitor for accurate billing
Adding GPS into the equation means you can verify that technicians are at the job when they say they are. Tracking your technicians through their smart device or vehicle telematics allows you to accurately bill for the amount of time the technician was actually onsite. If a task overruns because its actual complexity wasn’t originally planned for, not only are you able to reschedule the following tasks, but you will also be able to recognize that additional time in the billing process.
Turning service-to-cash starts with identifying obstructions that are holding you back from receiving payment quickly and accurately. These can quickly be identified by mapping out your service workflow, from the back office, through schedule and dispatch, to those out in the field.
— John Cameron
John Cameron is general manager of Trimble Field Service Management (FSM), where he is responsible for worldwide operations and development. Before joining FSM, Cameron was general manager of Trimble’s Spectra Precision Division. Previous that, he was general manager of Pacific Crest Corp., a company he co-founded in 1994 that was acquired by Trimble in 2005. More information can be found about FSM at www.trimblepulse.com.
