Services are becoming an important revenue source for more and more businesses.
Services are becoming an important revenue source for more and more businesses.Even those industries that historically dealt only in products ‒ retailers, distributors, and manufacturers ‒ are looking to services to expand revenue streams and diversify the business. Examples include:
- The furniture retailer offering in-home decorating services.
- The hardware distributor providing an inventory management system to retail customers.
- A machinery manufacturer adding maintenance contracts to proactively service machines.
Manage service delivery to assure profits
When you add services to your current product offering, it’s important to implement the processes that support the new business model. An ERP system designed to support service businesses will provide the foundation for best practices that promote profits and high customer satisfaction. Key functionality that you should look for in an ERP include:
- Automated workflows. When multiple people and departments are involved in service delivery, automated workflows ensure smooth hand-offs. When a task is completed, an alert or email is automatically sent to the next task owner to move the project along.
- Allocation of true costs. Choose a system that will allow you to allocate indirect as well as direct costs to your service delivery so that you can accurately evaluate profitability.
- Manage time, costs and expenses. It should be easy for your employees to enter and assign time and expense to each job they work on.
- Analyze results. Gathering data across service engagements will allow you to gauge profitability and adjust your offerings. With flexible reporting, you should be able to analyze multiple components of your service delivery.
Services can expand your relationships with customers, leading to greater profits. With an ERP system designed to manage products as well as service delivery, you can add services with confidence. Make sure that you choose an ERP solution that will support all aspects of your business. Let’s talk about your plans for growth today.
