Case Study

Process transformation for multi-billion dollar precision equipment maker increases aftermarket-service revenue 11% while cutting costs by 6%

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A multibillion-dollar precision equipment manufacturer

Industrial manufacturing

Business need addressed:
To make equipment breakdowns more infrequent, realize faster service revenue growth, and decrease service costs compared to peers

Genpact solution:
Design a comprehensive service transformation road map through as-is analysis, performance benchmarking, and technology blueprinting

Business impact:

  • Increased service revenues by 11%
  • Decreased costs by 6%
  • Increased Customer Allegiance Score (CAS) by 7%

Business challenge

The client’s service-revenue growth was slowing faster than peers’ while service operations costs were increasing more quickly. This double whammy resulted in lower profitability and higher customer dissatisfaction with product performance, order fulfillment, technical support, and service. Major concerns included the following:

  • People: Lack of in-house workforce and expertise needed to improve remote-monitoring and diagnostics and optimize field and parts service
  • Process: Mostly manual workflow with no common view of customer history/needs
  • Technology: Multiple system touch points leading to unreliable data sets as well as multiple data sources and system handoffs
  • KPIs: Most KPIs were tracked around turnaround time, with limited focus on performance effectiveness and financial metrics

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Genpact solution

Our detailed services process assessment involved:

  • Understanding the organization structure across 20+ cross-functional teams
  • Process interviews with 40+ key stakeholders in customer service, technical support, contract management, field service operations, billing and collections, manufacturing, logistics, depot repair, and others
  • Mapping an as-is IT landscape that included more than 10 legacy systems
  • Root-cause analysis using Six Sigma and Lean methodologies
  • Blueprinting and benchmarking to help redesign key processes (e.g., remote monitoring, prognostics, field force management, parts inventory) for the new operating model

Based on our detailed assessment, we proposed:

  • Adoption of a new “service factory” model enabled by centralization and standardization
  • Introduction of a horizontal and vertical team structure to allow organizational efficiency through end-to-end ownership of key business metrics
  • Enhancing end-customer experience through 35 process improvement initiatives

Business impact

  • 11% increase in service revenues annually
  • 6% annual cost decrease
  • 7% improvement in Customer Allegiance Score (CAS)

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