Lost & Found – Lost Service Costs

In this Lost & Found, we will look at your service department and some of the typical problems facing a business with service technicians, in the field or in-house.

· Most service technicians keep a supply of parts on their service vans. What percentage of that inventory gets lost, or is consumed and not reported from your service van’s inventory?

There are several ways to automate tracking of inventory on service vans to reduce errors and costs. The benefits can be significant. Fill in the blanks below and see how much your company may save.

Variable	Example	Your Business
Average inventory per van	$7,000	$______________
Lost inventory % per month	x 5%	$______________
Total lost inventory per van	$ 350	$______________
Number of vans	x 6	$______________
Total lost inventory per month	$2,100	$______________
Number of months per year	x 12	$______________
Annual cost of lost inventory	$25,200	$______________

· Often a field technician will phone in the results of a service call for an administrator to close out, and then turn in the paper work at a later time for invoicing. In-house technicians misplace or lose service order paperwork. How often do technicians misplace the paperwork and the customer never gets invoiced?

By automating your service orders and setting business rules to track late or missing service orders, you can reduce missed invoices and improve your revenue and margins. Fill in the blanks below to see how much revenue your company is missing.

Variable	Example	Your Business
Monthly lost billing per tech	$300	$______________
Total number of technicians	6	$______________
Total lost billings per month	$1,800	$______________
Number of months per year	12	$______________
Annual lost service revenue	$21,600	$______________
Total Lost Inventory/Revenue	$46,800	$______________

A department of company can be like a leaky ship. How many leaks can you afford in your ship? Exerve can help you find and stop the leaks.