ServiceBench, which was founded in the US in 2000, has established its European bridgehead with international headquarters in the Netherlands.  Its first UK customer is IBM for its System X range of servers and extends a relationship the companies have established in the US.

The solution both manages all warranty calls and issues for manufacturers and also allows partners such as retailers or extended warranty providers and their network of parts suppliers, distributors and service providers, to access data such as parts ordering information and to file claims for work done.   Because it is all automated it speeds up the processes such as submitting a claim, its validation and then its settlement, and reduces waste.  Special analytics software is also part of the application and allows managers to examine all aspects of a product’s lifecycle and the performance of its supply chain.

ServiceBench is one of the new breed of companies that offers its software as a service (SaaS) and the company’s president and chief executive officer Michael Dering said this makes the application well suited to its purpose. ‘As it is web based it offers easy but controlled access to the same data up through the supply chain and even to the user,’ he said. ‘Also we update the application every four weeks.’

He said that manufacturers needed to reduce the cost of warranty without damaging service performance.  ‘What they can save on the huge costs of warranty can go straight on the bottom line,’ he said.  He added that the product is also being successfully used by retailers such as Sears to manage its warranty issues across a wide range of equipment brands and manufacturers.

He reckons it is a huge opportunity with the warranty market worth some $31 billion in the US and expects Europe to worth a similar amount.  Market research firm AMR Research estimates that aftermarket service represents 24% of a manufacturer’s revenue but 40-80% of its profit.

The company, which has won service management contracts with leading manufacturing and retail companies including Whirlpool, Sears and IBM, is managing 3.5 million transactions a month for its customers.  It is paid on a ‘by transaction’ basis ‘so it is in our interests to make sure the system works well for our customers so they carry on using it,’ said Dering.

Dering said: ‘Post-sales service is still largely neglected by a lot of companies.  Big manufacturers are leaving a lot of money on the table by failing to address this important area of customer service.  Marketing-savvy clients are realising the vast potential for product differentiation by offering a superior customer after-sales service.  As the product life-cycle for consumer products shortens and the competitive environment gets more intense, we believe that post-sales service is emerging as a key driver in building and maintaining customer loyalty.’