This chapter introduces business issues of customer service. The first part discusses differences between the service and the manufacturing perspective. The second part introduces business concepts unique to service environments. Next is an overview of how the QAD Service/Support Management (SSM) module is organized and how it integrates with other functionality.

Related training material is available from the QAD Document Library. See QAD Service/Support Management Training Guide.

What Is Unique About Service?
Service is usually the only way, other than product sales, for a manufacturing company to produce revenue.

Service: The Competitive Advantage
Companies in manufacturing and supply chain sectors can leverage a well-managed service and support strategy into long-term competitive advantages

Basic Service Business Concepts
Introduces business concerns of service organizations that may differ from those in the rest of manufacturing.

Organization of the SSM Module
Describes the primary functions of service and support: setup, warranties and contracts, calls, and service activity.

Service is usually the only way, other than product sales, for a manufacturing company to produce revenue. However, the way service revenue is produced differs from the way sales revenue is produced. Many individuals familiar with manufacturing have to adjust their thinking to see the service perspective.

Differences between sales and service extend through the setup of the service organization and affect business decisions you make at every level. In a service environment, classical manufacturing concepts can mean something entirely different. For example, a service price list determines the price of servicing an item, not the price of the item itself.

Another difference that is significant to service is an end-user orientation. End users are often the starting point for service decisions. In the rest of the manufacturing environment, however, delivering to a user represents the completion of activity. To accommodate this difference, many people think about service in reverse to how they think about the rest of manufacturing.

For example, in the rest of manufacturing and distribution activity, your software manages shipping to the customer. This is the result of planning, fabrication, and delivery. Service activity, however, can start with the shipping of an item back to you. Your software manages the shipment of a return from the customer.

Even if you manage distribution with similar functions, interface, and procedures as the servicing of returns, the direction of flow is the opposite.