Service management

<h2 id="benefits">Benefits</h2>
<p>The main drivers for a company to establish or optimize its service management practices are varied:
</p>
<ul><li>High service costs can be reduced, i.e. by integrating the service and products supply chain.</li>
<li>Inventory levels of service parts can be reduced and therefore reduce total inventory costs.</li>
<li>Customer service or parts/service quality can be optimized.</li>
<li>Increasing service <a href="/facts/Revenue/UDcW3HGL">revenue</a>.</li>
<li>Reduce obsolescence costs of service parts through improved forecasting.</li>
<li>Improve customer satisfaction levels.</li>
<li>Reduce expediting costs - with optimized service parts inventory, there is no need to rush orders to customers.</li>
<li>Minimize technician visits - if they have the right part in hand, they can fix the problem on the first visit.</li></ul>
<h2 id="components">Components</h2>
<p>Generally, service management comprises six different capabilities that companies should consider for optimization:
</p>
<ul><li>Service <a href="/facts/Strategy/vnQ3kcLw">strategy</a> and service offerings
<ul><li>Service strategy definition</li>
<li>Service offerings definition and positioning</li>
<li>Go-to-market strategy</li>
<li>Service portfolio management</li></ul></li>
<li><a href="/facts/Spare_parts_management/NRcIexAM">Spare parts management</a>
<ul><li>Parts supply management</li>
<li>Inventory management</li>
<li>Parts demand management</li>
<li>Fulfillment operations and <a href="/facts/Logistics/0Hr2w55W">logistics</a></li>
<li>Service parts management</li></ul></li>
<li>Returns, repairs, and warranties
<ul><li>Warranty and claims management</li>
<li><a href="/facts/Reverse_logistics/rgAwdIfU">Reverse logistics</a></li>
<li>Returns processing</li>
<li>Remanufacturing</li></ul></li>
<li><a href="/facts/Field_service_management/2xQCh3fm">Field service management</a> or field force effectiveness
<ul><li>Technician enablement</li>
<li>Mobility</li>
<li>E-learning</li>
<li>Activity scheduling</li>
<li>Service billing</li></ul></li>
<li>Customer management
<ul><li>Order management and availability</li>
<li>Channel and partner management</li>
<li><a href="/facts/Customer_insight/9avvtEnv">Customer insight</a></li>
<li>Technical documentation</li></ul></li>
<li>Assets, maintenance, task scheduling, event management
<ul><li>Remote monitoring</li>
<li>Diagnostics and testing</li>
<li>Asset management/optimization</li>
<li>Configuration management</li></ul></li></ul>
<h2 id="see-also">See also</h2>
<ul><li><a href="/facts/Customer_service/hNjARTTE">Customer service</a></li>
<li><a href="/facts/Enterprise_architecture/7UNSuE0l">Enterprise architecture</a></li>
<li><a href="/facts/Managed_services/xuV6Cn1L">Managed services</a></li>
<li><a href="/facts/Service_(economics)/B7L4tR8r">Service (economics)</a></li>
<li><a href="/facts/Service_economy/QjJBuCbg">Service economy</a></li>
<li><a href="/facts/Services_marketing/buVl99uG">Services marketing</a></li>
<li><a href="/facts/Service_design/FY8jPfqy">Service design</a></li>
<li><a href="/facts/Service_provider/m4lLh5u7">Service provider</a></li>
<li><a href="/facts/Service_science%2c_management_and_engineering/AvuNfqfz">Service science, management and engineering</a></li>
<li><a href="/facts/Service_system/556pbtGE">Service system</a></li>
<li><a href="/facts/Strategic_service_management/ShYG9NEp">Strategic service management</a></li>
<li><a href="/facts/IT_service_management/UIpRDey0">IT service management</a></li></ul>

<h2 id="references">References</h2>

<ol>
<li id="fn:1"><p>ISO/IEC 20000-1:2018. Information technology-Service management -Part 1:Service management system requirements. International Organization  for Standardization ISO, 2018
 <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li>
</ol>

Service management open-in-new

Service management