ERP system in service: from cost factor to success driver

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From tool to basis for success: How your ERP becomes the engine of your digital strategy.

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Satisfied customers who give a company are becoming increasingly important for sales success. Instead of focusing solely on product manufacturing, companies are therefore increasingly investing in customer care. This also includes the digitalization of service processes.

The ERP system in particular offers enormous potential for optimization in service. In the following article, we take a look at what this means in practice and which services give you a decisive competitive advantage.

Why does your success also depend on service?

According to a study by management consultants Atreus, two developments are particularly troubling for companies in the B2B sector: increased competitive pressure (51%) and falling customer demand (49.7%). However, many companies also see changing customer requirements as a major challenge (29.5%).

In order to stand up to the international competition, companies need to focus more on their customers. An important part of this is played by an outstanding Customer service: low-wage countries can only compete with difficulty. CX expert Shep Hyken also explains in a LinkedIn post: “Customer service is your competitive advantage.”

Above-average service quality is crucial for high customer satisfaction. After all, clients in the B2B sector now expect the same level of service from their partners that they are familiar with from the B2C sector:

• lightning-fast response times,
• competent contact persons,
• transparent processes,
• individual support and
• excellent support.

However, there is room for improvement in the planning and execution of service orders in many companies. It is not uncommon for the entire communication process to still take place via paper, telephone and email. Or via isolated tools that also require manual processes. Delays and frictional losses are therefore unavoidable – as are dissatisfied customers.

What can a modern ERP system achieve in service?

Problems in after-sales support are often the result of a lack of digitalization and a lack of data transparency. Closing these gaps is one of the core competencies of a modern ERP solution. Special service modules are used to improve the planning, execution and post-processing of service orders.

The most important service functions in the ERP system include

Central data and device management

An ERP solution for service stores all the data that is generated as part of an order in a central location and links it to the corresponding ticket. This means that everyone involved has access to a shared data pool at all times. This provides insight into, for example

• Customer information,
• Service contracts,
• Warranty periods for systems,
• serial number and batch tracking and
• the components installed at the customer’s premises and their condition.

Thanks to comprehensive documentation, you can also track the entire history of an order at the touch of a button.

ERP-based scheduling and resource planning

Field services can be planned and coordinated by the hour using an ERP system. In no time at all, the software determines the earliest possible deployment date, taking into account the respective material and personnel availability.

As the qualifications of the specialist staff are also included in the deployment planning, you can assign your employees precisely. This ensures that your service is carried out optimally.

Particularly practical: intelligent planning boards clearly display resource planning in a graphical view and show you capacities. On this interface you can, for example

• Book and check appointments,
• Plan and assign service activities via drag and drop,
• use a wide range of filter options and
• Plan resources.

Confirmation of service calls

The ERP data flow in the service area is bidirectional. This means that information from a service call always flows directly back into the system. This applies, for example, to

• the duration of a service call,
• time and material consumption and
• the work steps carried out.

The field service usually transmits this data via a mobile device so that the back office can start managing hours and payroll without delay. More on this later.

Automated spare parts processes

ERP software in service can automate spare parts processes. As soon as a service case is entered, the system checks the availability of the required parts in the warehouse. If necessary, it triggers a repeat order and reserves the components for the order. The software also initiates picking and dispatch autonomously.

Thanks to the direct connection of the warehouse to the system, stocks are also updated immediately in real time. Incoming goods are recorded, for example, as are stock transfers and returns.

What are the advantages of an ERP solution for customer service?

More efficiency

Thanks to the direct integration of service data into the ERP system, there are no more media disruptions. This ensures uncomplicated data exchange and prevents duplicate data maintenance. This not only saves you time, but also reduces sources of error.

Transparency for all parties involved

All employees can see at any time which service technicians were on duty at the customer’s premises and what services were provided. This eliminates the need for time-consuming manual coordination and personal inquiries by email or telephone.

Better customer experience

Data-centric after-sales support allows a uniform view of all processes – for both office and field staff. By ensuring that all team members have the same level of information, they can confidently meet the customer’s requirements. This creates trust and increases customer satisfaction.

Faster response times

Digital workflows noticeably speed up the processing of service orders. As soon as a customer inquiry arrives, the system automatically generates a ticket and sets the subsequent processes in motion. This makes short response times a breeze.

More controllability

An ERP service module transforms customer service into a plannable process with clear responsibilities. You can continuously improve efficiency and service quality by evaluating measurable key performance indicators (KPIs) and conducting in-depth analyses.

3 services that will make you stand out

Service platforms for customers

If you really want to stand out in the service sector, you need to score points with your customers with a unique selling point. You can do this, for example, by providing a customer portal. This is directly linked to your ERP infrastructure and simplifies collaboration between you and your client.

In mechanical and plant engineering, for example, you can make explanatory videos and maintenance instructions available on the platform. Machine operators can then easily access these via the internet. Or you can allow your customers to book and track service calls digitally.

Many things are conceivable at this point – and not only your customers benefit from this, but also you. Let’s take the ordering of spare parts: As a rule, customers don’t always know exactly which component they need. This results in inquiries by phone or email that are difficult for your colleagues in merchandise management to understand.

Using a service platform with a connection to the merchandise management system, your customers can specify precisely which part and which serial number is involved. They see the available items with images and can order them conveniently via the platform. The order is then forwarded to your ERP system where it is processed by the service department.

Mobile apps for field service

If service data from the ERP system is available in a mobile application, field service employees save a lot of time during their work. Instead of laboriously asking for information about the customer and the service case, all they need to do is glance at their smartphone or tablet.

There you will find all the information you need for use in a clearly laid out form:

• Where is the customer located and what is the best route to get there?
• What repairs and maintenance work have been carried out so far?
• What errors and problems have occurred so far?
• Which spare parts are in stock?

This means that employees at the customer’s site can start processing the order immediately and do not lose any valuable time. If additional spare parts or follow-up orders are required, they can be easily ordered via the app.

The follow-up of the assignment is also quicker and more convenient. On the one hand, the specialist personnel can record the hours they have worked directly on site in a time accounting system. On the other hand, it is possible to create and sign service logs in the mobile application.

The information then flows directly into the ERP system. For example, the accounting department is able to promptly post expense receipts and send an invoice to the client.

Predictive maintenance

A study by the management consultancy BearingPoint has shown that companies were able to reduce their maintenance and service costs by 17% thanks to predictive maintenance. Plant downtimes were reduced by 18% and turnover increased by 10%. Advantages that should interest every customer.

With predictive maintenance, machine manufacturers and operators benefit from condition data measured by sensors on critical components. This could be information on the operating temperature, pressure or vibrations of a machine or system, for example.

The sensor system records this information in real time and forwards it to monitoring systems, which then evaluate it using special algorithms. In this way, faults can be detected much more quickly so that customer service can proactively initiate maintenance work.

ERP solutions play an important administrative role here. They are the hub between machine data and people and automatically organize the necessary maintenance work. Modern ERP systems can decide autonomously which technician is best suited, what the maintenance history of the system is and whether the necessary spare parts are available.

This allows manufacturers to expand their business model by selling not only the machine but also its availability or output. They can also use the collected data to optimize their own product development.

How companies have improved their service processes with an ERP system

1. Sumitomo (SHI) Cryogenics of Europe GmbH:
From product manufacturer to service provider

Sumitomo (SHI) Cryogenics of Europe GmbH has been using our APplus ERP system for several years. By using the solution, the company has been able to efficiently automate and integrate its service processes. The most important functions include

• the planning of optimal technician assignments based on availability and qualifications,
• the online and offline-capable mobile app for digital on-site documentation of material lists, device status, customer information and much more,
• Automated feedback to the ERP system, including synchronization, which seamlessly triggers subsequent processes.

Thanks to APplus, the manufacturer of cryotechnical solutions has ultimately succeeded in expanding its business model: from a pure product manufacturer to a hybrid provider with a strong service focus.

Read full case study

2. rHEWA-WAAGEN:
A third of the time saved thanks to digitalized service processes

RHEWA-WAAGENFABRIK – August Freudewald GmbH & Co KG from Mettmann has been relying on our APplus ERP system for many years to provide optimum support for its complex production and service processes. The solution ensures better processes, particularly in customer service:

• Automated process steps enable 30% time savings and more quality in customer contact.
• Integrated information provides employees with all relevant customer data during telephone calls.
• Faster information increases service quality and improves the customer experience in the long term.

With APplus, RHEWA-WAAGEN can make numerous service processes more efficient, avoid duplication of work and respond to customer inquiries much more quickly and accurately.

Read full case study

3. Next Generation Recyclingmaschinen GmbH (NGR):
Efficient service operations and seamless deployment documentation

Next Generation Recyclingmaschinen GmbH (NGR) services over 1,650 recycling plants worldwide. The company uses APplus Mobile Service to efficiently plan and seamlessly document its international service assignments. The solution improves the service processes by:

• automatic selection of the most suitable technicians – including consideration of qualifications, visa status and vaccination requirements,
• digital deployment planning with provision of all relevant documents in the mobile app,
• Seamless documentation including photos, logs and digital signatures directly at the customer’s premises,
• Automatic synchronization of all deployment reports and data – for faster internal workflows and transparent follow-up processes.

Thanks to APplus Mobile Service, NGR saves time and offers its customers worldwide an even faster and more professional service.

Read full case study

Conclusion: An ERP system optimizes service in the long term

Connecting the service area to the ERP system enables a continuous flow of information from the service request to billing. The software manages all important service data in one place, supports communication and makes service processes more efficient.

Used correctly, an ERP solution for service strengthens customer loyalty and even enables the implementation of new business models. This transforms customer centricity from a necessary evil to a powerful differentiator that secures your future viability.

Would you also like to increase your customers’ satisfaction with an ERP system in service? Then you should make sure you choose the right system. An experienced provider will find a solution that best supports your industry-specific business processes and steers them in the right direction.