Summary
Viabl partnered with Hess Equipment Solutions to tackle a critical misalignment between their operations and their Field Service Management Software. By redesigning the way inventory data was reported and utilized, we enabled Hess to save $80k per year, all for a total implementation cost under $20k — a 300% return on investment (ROI) every year. The result was a tailored system that improved inventory accuracy and eliminated the need for expensive workarounds, all for a fraction of the cost of a more complex solution.
Key Takeaways
Misalignment between Field Service Management Software and Operations can be Costly: When calculating the costs of a misalignment between operations and software, it’s vital to consider which revenue-generating activities your employees are forgoing in order to work with your software.
Communication with Client is Key: We were able to discover root causes and find cost-effective solutions by visiting and interviewing key employees.
Viabl’s Commonsense Engineering Results in Large ROI: By considering the return on our client’s investment above all else, we were able to architect a solution that delivered incredible value and results.
Challenge
Hess Equipment Solutions was facing significant costs because their Field Service Management Software did not align with real-world business operations. While parts were used in the field on the day of the job, their software system would only reflect these usage events after the job was completed and the invoice was approved. This often took one to two weeks, and sometimes longer. This delay led to:
Costly Rush Orders: When parts were unavailable for a specific job, rush orders became necessary.
Opportunity Costs: Waiting for the correct part resulted in lost opportunities.
Frequent physical inventories – The mismatch between their software’s inventory count and the actual physical stock required regular and costly manual inventory checks.
These inefficiencies cumulatively cost Hess $80k a year, highlighting the urgent need for a system that could reflect accurate, real-time inventory levels.
Problem
Parts were used but weren’t debited until weeks later. This caused multiple downstream effects such as costly rush orders, manual inventory checks, and opportunity costs
Approach
At Viabl, we prioritize Communication and Commonsense Engineering to ensure our solutions are both tailored and efficient. Our approach consisted of:
Employee Interviews: We began by visiting Hess’s main warehouse and engaging with Hess’s workforce to gain firsthand insights into how the existing system was used and where the disconnects were occurring.
Root Cause Analysis: By understanding the gap between the business rules of their field service management software and actual operational practices, we identified the core issues driving costs.
Commonsense Engineering Design: By putting the needs of the business above all else, we brainstormed architectures that would return the highest ROI.
Solution
Our solution was elegant in its simplicity and effectiveness. We focused on creating a tool that was both easy to implement and highly functional:
Daily Export to Google Sheets: We implemented a daily export of inventory data into Google Sheets where we could make inventory adjustments without needing to worry about damaging the service software. This allowed for accurate inventory counts, aligning operational reality with digital records.
Dynamic Reordering Sheet: A supplementary Google Sheet was developed to accommodate reordering needs, directly informed by the accurate-to-the-day inventory counts.
Standard Operating Procedures (SOPs): To ensure smooth operation, we developed simple SOPs for Hess employees, enabling them to use the system with minimal training or oversight.
By choosing a lean but highly effective solution, we stayed true to our core engineering principle: Commonsense Engineering. Instead of investing significantly more time and resources into a flashy front-end that might look impressive on LinkedIn but offer no additional value to Hess, we focused on what mattered: delivering a solution that was fast, functional, and cost-effective.
Results & Impact
The implementation of our tailored solution delivered immediate and measurable benefits:
Financial Savings: Hess Equipment Solutions began saving $80k per year by eliminating the inefficiencies inherent in their previous system.
Operational Efficiency: Real-time inventory management drastically reduced the need for rush orders and minimized opportunity costs.
Reduced Administrative Burden: The need for frequent physical inventories was significantly lowered, allowing management to focus on more strategic operational tasks in these challenging times.
High ROI: With an implementation cost under $20k, the project yielded a 400% annual return on investment, proving the value of pragmatic, business-focused engineering.
Looking Forward
This collaborative project showcases how a Commonsense Engineering approach can deliver incredible value to businesses whose software doesn’t align with their operations. By aligning strategy, technology, and operations, Viabl was able to achieve an astronomical ROI for Hess.
As always, Viabl will continue to offer large returns to Hess and other Small and Medium Enterprises whose operations don’t align with their Field Service Management Software.
If you could use help aligning your Field Service Management Software or SAAS with your real-world operations, let’s talk.