49% of Hi-Tech Manufacturers Spend Over $200 Per Equipment Repair

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Fortune 1000 OEMs Share Data To Learn How Their Service Operations Stack Up In Annual Service Supply Chain Benchmark Study

Fifty-three manufacturers from mostly hi tech firms representing computer/networking, telecom, medical device, office automation and other similar industries participated in the inaugural Service Supply Chain Benchmark Study on June 15, 2010. The Benchmark Study is a feature of the Interlog Summer meeting, the premier service parts supply chain and reverse logistics conference. The service parts and reverse logistics executives shared valuable insight into their service operations to create an effective benchmark for the industry using clear, consistent definitions.

Twenty-nine perfect of the manufacturers reported their average cost per repair was between $201 and $1000. While 20 percent said their average cost per repair was greater than $1000. Thirty-nine percent of the manufacturers reported their returns percentage (the number of returnable pieces returned in a specific time period divided by the number of returnable pieces shipped in that same time period) was between 60 and 70 percent. Other areas that were measured in the benchmark include average aging backlog or open orders, lean manufacturing techniques, service expense to revenue, and more.

“The Interlog Summer Benchmarking Study is a valuable tool for getting commonality on measurements to effectively benchmark your organization’s performance against others,” says Mark Hessinger, Executive Director of Worldwide Customer Service for Gerber Scientific. A preview of the results of the 2010 study can be downloaded by visiting Interlog Summer 2011’s web site: http://www.interlogsummer.com.

For the second year will host the Service Supply Chain Benchmarking Study. The study will take place at Interlog Summer’s annual conference on June 15th at the Los Angeles Palace Hotel. 150 service logistics executives will participate in the benchmarking study via anonymous, real time audience response polling.

The logisticians will be benchmarking 20+ items from service expense to revenue and average cost per repair, to inventory turns and areas of the business that are outsourced. Interlog Summer attendees can submit items they would like to include on the benchmarking study by contacting Sara Mueller, Executive Producer of Interlog Summer, at 239.431.6328 or sara(dot)mueller(at)wbresearch(dot)com. This year the results of the benchmark will be broken down further by industry and the company’s annual revenue so manufacturers can compare the performance of their organization to companies most similar to their own.

About Interlog Summer: Launched in 1998, the Interlog conference series has been committed to helping service parts and reverse logistics executives dramatically improve their operations. As we enter our 14th year, our mission remains the same. http://www.interlogsummer.com

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Michael Salkinder
WBR
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