Overtime pay was effectively eliminated as a cost center.
In the first year alone, over $150MM in direct costs savings were realized, while service levels were improved.
Capacity utilization was increased by as much as 50%.
A leading North American national brand needed to improve the performance of its field service workforce and assets. With over 7,000 technicians, hundreds of trucks, and myriad tools, parts and equipment, it was fielding millions of service calls annually.
Management realized that a more responsive scheduling system would improve the bottom line directly by reducing overtime costs, helping abide by union rules and reducing impact of daily disruptions. Sudden vehicle breakdowns, last-minute personnel absences, and longer-than-expected service calls were impacting service as well as profitability.
Importantly, it was difficult to make sure the appropriate resources were dispatched to each call. There were many incidents where service calls had to be rescheduled as the wrong crew, truck, equipment, or some unwelcome combination of those, was sent out in error.
Moreover, the company wanted to improve customer service by reducing overall response time from call to service, as well as by reducing the service window so that customers were minimally inconvenienced.
The company found that Okhama was up to the task of the massively complex operation involved in getting all the right resources to the right place at the right time that went beyond just its workforce.
Okhama’s unique optimization algorithms and methodologies delivered the basis for optimal capacity utilization, with consideration for all the necessary hard and soft constraints. These included relevant operating and financial elements, including equipment requirements for each call, crew skill sets and union rules, as well as dependencies that existing solutions do not address.
For this national brand, Okhama uniquely re-optimized its schedules in seconds and in rapid succession as change requirements and disruptions became apparent, delivering actionable and optimal service planning in real-time.
After implementing Okhama into its operations, the company realized a net savings of more than $150MM in the first year as it increased its service resource capacity utilization by as much as 50%.
With Okhama, the company increased the capacity utilization of its existing resources to effectively eliminate technician overtime. Furthermore, the company reduced service call response time from a week to two days and was now able to offer a two-hour service delivery window, rather than having customers sit at home for half a day or more.
One of the most impactful benefits for the company was that it could now ensure that the crew with the appropriate skill set and the right truck with the relevant equipment and parts was dispatched to each call.
Importantly, the company became significantly more responsive to day-to-day disruptions which can throw even the most meticulous schedules into disarray. With Okhama the schedule is iterated in real-time to mitigate the risk posed by these unavoidable situations.
Simply put, with BoldIQ’s Okhama, this national brand improved customer service levels and increased its profitability through optimized capacity utilization and real-time scheduling.