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5 ways to check the health of your service team culture

5 ways to check the health of your service team culture

Does your service team have a strong culture?

If you hesitated while answering this question, you’re not alone.

Upmarket facilities might make your team more comfortable, but they won’t help you develop great service culture. Culture can only be created by people.

You build good team culture by promoting collaboration, knowledge sharing, transparent communication and meaningful interpersonal connections – and by adopting an unified vision, beliefs and goals.

Promoting team engagement, rather than individual achievement, creates a team that learns together and treats its members with respect.

You also can’t build good team culture without effective leadership. Management that understands how happy and engaged employees lead to happy customers makes a world of difference. Fostering a leadership style that creates the conditions for your team to succeed, means your customers become winners.

 

Here are five ideas to promote a healthy service team culture:

  1. Make sure staff know the reason the organisation exists and its vision, mission and values. Identify and define your team’s culture. Talk to your team about why the business was created and brainstorm the vision, mission and values of the organisation. It’s important not to do too much telling here. Encourage team members to share their ideas and contribute to the discussion. Look for agreement, not difference, and listen with intent to what they’re saying.Ask staff to describe the ways they communicate with customers. How do they explain equipment or service problems to them and how do they describe the manner they’re going to resolve these problems? A well-motivated staff member who feels their views are taken seriously by management will become a source of ideas and initiatives.
  2. Examine the effect of incentive programs on the field services team. Writing in the Harvard Business Review (HBR), Alfie Kohn argues that dozens of studies over the past three decades have shown how “people who expect to receive a reward for completing a task … simply do not perform as well as those who expect no reward at all”.The takeaway from this HBR article is that “rewards buy temporary compliance”, but no long-term change. It also contends that incentive programs can damage a team’s morale. Rewards over time have a punitive effect because they’re manipulative, he says, and nobody likes to be controlled.Asking staff to compete for rewards can fracture team coherence and undermine cooperation. If you’re going to use an incentive program, construct it carefully to ensure it doesn’t have the potential to damage your team.
  3. Talking about customers when they’re not there. We often talk about effective communication with customers, but how we speak about our customers when they’re absent is just as important.Think of it like this. The conversations that take place within the team about customers’ needs and expectations reflect and help shape the customer service ethos of your organisation. Whether the customer is within earshot or not it doesn’t matter.Good customer experience always involves consistency and respect and if team members feel it’s okay to complain about a customer during or after the job is completed, this sets a dangerous precedent. Establish an understanding within your team that complaining or speaking negatively about customers is unacceptable under any circumstances. At the same time, ensure a formal process exists for notifying management if something serious occurs with a customer that you should know about.
  1. Aim for transparent leadership that fosters open communication. Do your team members feel safe asking for support, openly discussing potential problems and escalating customer problems?When leaders become more transparent to their staff, loyalty will develop. Sharing business information helps the team feel involved and enfranchised in the organisation. They feel that the employer trusts them and is going to look after their needs.One of the most powerful ways to embed strong leadership is to communicate face-to-face when possible. Instead of sending out a team email, gather the team together to tell them news, and invite their responses and questions. If face-to-face isn’t possible use a video conferencing program, such as Zoom.
  2. Ask your customers for feedback. Feedback from your customers, both positive and negative, is like gold. As Bill Gates said, “Your most unhappy customers are your greatest source of learning.”A recent HubSpot report confirmed that the most common source of new leads are referrals, so customer feedback is essential to your organisation’s growth.Take time to personalise your requests for feedback from customers and be specific about individual performance. If you receive bad feedback, always follow it up with the customer.Also talk to your customers in person, if possible, about their experience with your organisation. When you receive positive feedback, make sure you celebrate it with your team. When negative feedback is received, huddle with your team to discuss what went wrong and how problems can be resolved.

 

Let’s sum up why good culture is so important.

  • Teams with positive cultures thrive, they invest in the outcomes and strive to achieve goals together.
  • Your field service team is the face of the organisation and where there’s a positive team culture, customers will see a happy employee.
  • Customers do not form relationships with equipment, they form relationships with service teams. A strong service team culture creates engaged customers.

What’s the point?

  • Happy engaged customers are loyal and they purchase more services.
  • Delighted customers have a high lifetime value.
  • It’s cheaper to retain customers than it is to find new ones.

 

At Klugo we build lasting partnerships with our customers

We are one team to unlock your operating potential. We help by implementing and optimising the world’s leading ERP, CRM, MFG and FSM systems to run your business faster and leaner.

Leaders in optimising NetSuite + NextService for wholesale distribution, manufacturing and field service customers in Australia and New Zealand.

Be sure to check out our ROI calculator and learn how we can help you boost the return on your investment.

 

About Klugo

NetSuite + NextService

Klugo’s vision is to unlock the full operating potential of our customers to maximise the value of their business. We do this by helping our customers achieve operating excellence using NetSuite + NextService, the world-leading cloud ERP and FSM business platform for small-to-medium-sized businesses.

Need a specialist’s free advice?

Feel free to call an expert in operational excellence today. Find out how cloud-based technology can support and quickly adapt to your growth strategies.

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Over the past 12 months, COVID-19 has created uncertainty in the business community, some businesses have been severely impacted while others have continued to grow. The economy has been seen Its first major downturn in over 30 years.

 
How does a business owner navigate the unique challenges created by the economic conditions we now face? How can small businesses increase their efficiency while streamlining costs?

We have good news! Despite the current economic environment, there are real opportunities to increase productivity and profits.

Cloud-based enterprise resource planning (ERP) systems are already transforming businesses around the world. By providing complete single-platform solutions that can adapt to a variety of industry needs, organisations are achieving goals that were once unattainable.

What you’ll discover as you keep reading is that a unique cloud-based ERP system has been developed specifically for field service management.

But first, let’s look at the difference between ERP systems.

 

What’s the difference between on-premises ERP and cloud-based ERP?

An on-premises ERP system is installed locally on the company’s computers and servers – or those of their service provider. It is managed by the company and stored and maintained in-house.

Extra costs for an on-premises ERP system may include additional software that’s required for security, antivirus, backup, storage and customisations.

A cloud-based ERP system, on the other hand, is hosted off-site. It’s on the ERP vendor’s servers and provided as a service that is accessed through a web browser. The vendor is responsible for everything including the operating system and servers, data centre infrastructure, data storage, and security and feature updates.

As all systems, software and data are online in a cloud-based ERP system, the only thing you need to access any part of your organisation is a browser and a password. You can do this via any browser-enabled device at any time.

 

What are the benefits of a cloud-based ERP system?

Can you imagine drawing all your business information from one source – even if some employees work remotely or are interstate? You’re looking at a 360-degree view of your organisation instead of silos of information that need to be collected, analysed and consolidated. There’s no longer any need to jump between different software packages that don’t communicate with each other.

But it doesn’t end there. You can also draw on real-time reports about your company’s health, its best practices and most popular services. You can identify trends and areas where there’s room for improvement

You can even automate functions to provide your sales team with real-time visibility into inventory, sales and orders.

Your employees can access relevant information from wherever they’re working. You can issue contracts and invoices in record time, connect teams, share knowledge and provide better project management.

Cloud ERP systems provide these innovations, and their transformative features help to make businesses more competitive and robust.

The list of cloud ERP packages is extensive, along with the capacity to expand and extend processes and functions as your business grows.

You might be wondering whether you can customise a cloud ERP package to suit your individual business? The answer is yes. If you adopt new business models, your cloud ERP system will embrace them too. And with every cloud ERP upgrade, your configurations and customisation will migrate as well.

 

Build a strong field services organisation with a cloud ERP system

Building a strong field services organisation is a keystone goal, and a gold standard cloud ERP system can play a major role towards that end.

It doesn’t take a global pandemic to challenge the stability of an organisation. Factors such as political unrest, adverse weather events and stock market volatility can also affect field service organisations.

If you don’t have functional procedures based on real-time data, your business in Ipswich will suffer unduly when floods wreak havoc in Queensland. If your solar panel manufacturing unit in the Philippines has diminished output due to a shortage of silicon, and you don’t have access to comprehensive data about your factory protocols, you’re already struggling to predict the financial cost of the shortage.

Your current field services management software could cost you both reputational damage and profit. On-premises ERP systems can experience these types of issues because their software and processes haven’t been updated, multiple versions have been installed or their processes have become siloed.

By contrast, a cloud ERP system with its integrated database can draw on reports that provide visibility of weak spots in your organisational processes before an adverse event occurs. This allows you to make decisions based on the most up-to-date information available.

 

A single solution: a field services solution built on the NetSuite platform

The big news is that we are NetSuite and NextService service providers. Klugo partnered with NextTechnik and the world’s leading cloud ERP, NetSuite, to offer a cutting-edge complete end to end solutions for business that have field service teams. This collaboration enables field service operators to manage their businesses with first-class expertise.

You can schedule installation, repair and preventative maintenance using drop and drag functionality. As a field service operator, you can consume and manage inventory from anywhere, and automate invoicing, service report generation or job sign-off. Along with this, you can utilise the NextService Google maps integration, which displays all scheduled tasks as well as the technician’s current location.

You can record key asset, job and compliance data from a mobile user interface, and you can report and configure key performance indicators and alerts in real-time.

NextService can adjust currency and exchange rates at a local level, as well as taxation and legal compliance differences. It can even generate your BAS Statement automatically.

Any changes made in NetSuite are immediately visible in NextService, and this powerful unified platform allows the field services operator to make informed decisions in real-time.

The powerful functionality of the NetSuite field service solution eliminates time-wasting, redundant tasks and enables you to make real-time decisions that grow your business.

If you’d like to learn more about NetSuite solutions or the value NextService can bring to your business, contact us today.

We’re here to help your field service operation cut costs and grow.

 

About Klugo

NetSuite + NextService

Klugo’s vision is to unlock the full operating potential of our customers to maximise the value of their business. We do this by helping our customers achieve operating excellence using NetSuite + NextService, the world-leading cloud ERP and FSM business platform for small-to-medium-sized businesses.

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Construction in Australia as in other parts of the world is considered an essential business. In 2019, over 1.15 million people were employed in construction, that is 9.2% of all jobs in Australia. The construction industry contributes to 9% of the total GDP of the country, and it will be key to the recovery of the national economy.

The introduction of heavy machinery like cranes, excavators and bulldozers transformed the industry, but automation has yet to play a more important role in the industry. Construction is one of the three industries (together with agriculture and transport) that are slow to embrace digital technologies and innovations; as a result, there is a number of opportunities emerging for businesses providing services to the construction industry. In a highly digital age, almost every aspect of the industry can be supported by innovative new technologies.

Drones and robots are being utilised to automate aspects of the maintenance process itself directly, and advanced sensors combined with the application of machine learning algorithms are enabling highly accurate predictive servicing. In a recent example of this, Data61 have utilised machine learning to create a model that can identify water mains at risk of potential failure. This model will allow Sydney Water to be proactive about their maintenance requirements and has the potential to save them $700 million in reactive repairs and maintenance.

In a 2019 study, McKinsey Australia identified the Construction industry as one of the nine sectors most exposed to automation opportunity and estimates that 25 per cent of work activities will be automated by 2030. This automation will be achieved through the application of new technologies, which in many cases will lead to new servicing and maintenance requirements. The lack of technology in construction maintenance presents an excellent opportunity to generate business in an industry that will remain one of the strong pillars of Australia. Automation has the potential to add $2.2 trillion to the Australian economy over the next 15 years.

Across the globe, we’re seeing technology being successfully implemented to improve the safety and efficiency of maintenance procedures. In 2018, Enes Karaaslanat led a study at the University of Central Florida that focused on developing a human-centred tool to offer improvements to infrastructure inspection and maintenance practices. They created an augmented reality (AR) framework that is intended to be integrated into a wearable headset, allowing an inspector to automatically analyse components they observe in real-time, and obtain information about any defects present. This technology greatly empowers maintenance inspectors and increases their ability to accurately identify potential threats in infrastructure.

Here in Australia, the Centre for Autonomous Systems (CAS) at the University of Technology Sydney worked in partnership with the NSW Roads and Maritime Services (RMS) to create a robot that is intended to inspect hazardous or inaccessible regions of the Sydney Harbour Bridge.

The robust device is capable of navigating complex terrain that is usually difficult or dangerous for humans to access and collects valuable information about the condition of a structure. Through this automation, the RMS has greatly increased the efficiency of their maintenance process, while also removing the associated occupational health and safety risks that come with human workers surveying these areas.

With the Construction industry in Australia projected to be a crucial factor on the recovery of our economy, and with high-tech equipment and automation at the core of this growth, it appears that there will be an increasing demand for machinery maintenance services in the coming years. In order to cater to this demand, and capitalise on emerging opportunities, it is essential for companies providing automation in the Maintenance for the Construction industry to implement new technologies to improve their own productivity. With this in mind, let’s explore the 5 keys to performance for companies in the Maintenance for the Construction industry, and examine how they can be implemented using the powerful combination of Netsuite + NextService.

Machinery-For-Construction-Maintenance-Header-01

1. A Focus on Customer Service

Fulfilling customer expectations is vital for building long term relationships in any industry. In the Maintenance for the Construction industry, this means ensuring that timely preventative maintenance (PM) is provided in order to limit the chance of problems arising. NextService automates the PM process by tracking equipment service history and allowing managers to allocate the required maintenance tasks to different teams within their company.

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2. Effective Scheduling to Improve the First Time Fix Rate

To ensure maintenance to machinery and sensor is performed efficiently, it is important that the technicians handling the task have the appropriate skills and equipment. The more often a company can get the job right the first time, the happier their customers will be with their service. The NextService Scheduler allows managers to view customer and job information alongside information about their technicians’ skills and equipment, making it easy for them to assign the right staff to the right project. The Scheduler even features an integrated map, allowing managers to view all their field staff geographically and optimise their task scheduling based on this information.

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3. Investment in Inventory Prediction Technology

For companies in the Maintenance for the Construction industry, managing inventory effectively is a vital key to success. Without utilising technology in this area, human error can easily lead to costly mismatches in inventory levels and job requirements and greatly impact your overall productivity. The NextService mobile app allows for complete inventory management utilising a built-in barcode scanner. This makes it simple for companies to manage their supply and demand by viewing the analytics in real-time.

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4. A Focus on Accounting and Asset Management

Servicing machinery involves a lot of equipment, and as a result maintenance companies are required to manage the finances on a large number of assets. This can be extremely difficult and often results in confusion around the value of these assets after depreciation, and when to retire them.

NetSuite supports companies to understand their asset lifecycle, by tracking relevant information and calculating depreciation schedules. This allows companies to greatly improve their management of assets through real-time accounting.

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5. Consolidation of all Platforms to a Single Tool

The Maintenance for the Construction industry is driven by data, and with so much relevant information to consider, it makes sense for maintenance companies to aim to store all this data in one place. Using multiple platforms with siloed information makes it difficult to get the complete picture, and increases the time spent by staff accessing and utilising information. NetSuite is an all-in-one business management tool, combining all the capability of CRM and sales tools with powerful accounting, inventory and project management automation. The platform integrates seamlessly with NextService providing companies with comprehensive control over both their admin and field operations.

 

It is clear that the coming years will present a lot of challenges to those in the Maintenance for the Construction industry, but opportunities arise as automation continues to drive increases to the efficiency of both the construction and maintenance processes. If you are a maintenance company looking to support your automation business within the industry, the combined NetSuite + NextService platform can assist you to improve your productivity by providing complete control over all your operations.

Utilising a single platform solution greatly simplifies your IT environment, empowering your team to work more effectively and giving you a real-time snapshot of your business.

Need a specialist’s free advice?

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Field Service Business by nature are high contact. Whether providing break-fix repairs to customers equipment or managing installation and commissioning of new manufacturing machinery, being a field service technician means being onsite.

Field Service businesses, which traditionally have been paper-based are now looking at ways to:

  1. Streamline the scheduling and dispatch of their technicians.
  2. Digitise both the delivery of job, customer and asset details to their mobile devices.
  3. Enforce strict safety checklists and OHS processes.
  4. Streamline job data capture, progress updates, customer sign off and billing.

Traditionally, a Field Technician’s typical day involved a very high level of contact with various members of your front office, back office and warehouse teams, as well as the team members of your customers. However, by simply going digital, NetSuite and NextService customers have been able to eliminate the need for morning and afternoon paperwork pick up and drop off, as well as communicate with customers through video calls, rather than face to face.

They have also been able to rapidly adopt new safety policies and procures by implementing custom forms and checklists on the NextService mobile app to maximise compliance. 

Four Key Benefits of NetSuite and NextService

1. Eliminating Complexity in Scheduling

NextService has a NetSuite Native on-platform schedule board that allows your scheduling teams to quickly create jobs, review team members availability, proximity and skills and assign the case to the right technician.

Schedules can be edited on the fly, with notifications being sent automatically to field service technicians as and when things change.

2. Modern Mobility

The NextService mobile app, which works on any smart device becomes the key workspace for field-based staff. They are able to receive details of new jobs, asset and customer details and history, access a full case history of the customer and asset, and capture key information on their mobile device. From van-stock consumption through to time, expenses machine readings and more, NextService can be configured to suit the often highly variable requirements of different job types.

3. Empowering People to Follow Process

NextService as a Native extension of the NetSuite Platform can be configured quickly to capture any custom information you may require. This means that a rapidly changing world can be met with agility and adaptability ensuring that you are able to minimise any newly identified risks for your team and your customers by implementing adaptable checklists and procedures.

4. Streamlining the Flow of Data

As a built for NetSuite Native solution, any information that is captured in the NextService Mobile App is synchronised to your NetSuite ERP system in real-time. Front and back-office staff will have live information about field technician locations, job progress and be able to build-up to the minute field service management dashboards that empower quick and accurate decision making. Similarly, technicians are automatically alerted to any new job information or changes, which minimises the need for inefficient phone and email communications.

In Summary

At Klugo, we are passionate about helping Australian businesses adapt to change, and simplify their software ecosystem by investing in a modern, single platform of technology such as NetSuite and NextService. If you think we might be able to help you, then feel to reach out to speak to one of our Field Service ERP experts.

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How are Australian Service Companies Thriving Overseas?

The Australian economy is largely made up of businesses that provide either services or goods and services. Service businesses employ four out of five Australians and represent over 70 per cent of gross domestic product (GDP) in the country. Despite operational challenges of scaling a service business globally, a number of Aussie Service companies are not just thriving domestically, they are hammering the competition on the international stage.

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Service and service with goods made 40% of exports in 2016

There is a world of potential customers searching for excellent quality services across a wide range of industries. For Australia, the services sector accounts for most of the trading that occurs with other countries. Services made up 21.6% of total exports in 2016, and when goods are considered, they account for 40% of export earnings. The value of the services trade rose by 9.4 per cent in 2018 totalling $190.6 billion, and the share was below average that year at 22.4 per cent.

According to the WTO time-series database, US and China are Australia’s major trade partners for imports. The US accounts for 10.0 per cent of the world’s imports, which is up 4.0 per cent each year since 2013. China comes in second with 7.7 per cent increases each year.

Despite challenges, globalisation offers Australian businesses a prime opportunity to discover potential customers. With the yearly increases in service imports, Australian companies find significant growth opportunities whilst offering their services overseas. However, to truly transform local services into worldwide success, one crucial element is needed: the right technology backbone to support a multi-location business.

Made in Australia for the world.

Many lessons can be learned from local success stories. Poolwerx is one example of a company that is finding success in foreign markets. Having a Cloud ERP system that is global-ready was one of the many key factors that enabled their international expansion.

Poolwerx was founded in 1992, and it revolutionised the pool service industry with its network of pool and spa maintenance technicians. They started a franchise model that utilises the latest pool maintenance technology in Australia. This model facilitated Poolwerx expansion, they have now 160 retail stores and over 575 vans servicing in Australia, New Zealand and America.

Poolwerx success story was featured in the Keynote of NetSuite SuiteConnect in Sydney in February 2020 for its use of NetSuite + NextService. John O’Brien, Founder and CEO of Poolwerx, credited the platform: “With NetSuite, we have better visibility and control. We’re able to have a single source of truth that monitors and reports all franchisee performance, affording us the opportunity to operate as a small team, despite being globally dispersed.”

Poolwerx plans to expand across the US southern tier, the Sun Belt, with a five-year business development strategy targeting verticals in the commercial sector, schools, hotels and fitness centres. NetSuite and NextService will provide technological support for their innovation and international growth.

SprintQuip is another company that achieved success with the help of NetSuite. NextService, a customised field service platform built-in NetSuite was the backbone of the company’s global expansion.

SprintQuip offers cash machine products, including ticket counters, weighers and scales, deposit machines, money safes, sorters, along with service support. Stephen Basford, the General Manager of Systems and Compliance, says the company’s success is due to the efficiencies NextService created in the field and the back-office administration. This has improved customer response times and simplified scheduling and billing systems.

The company now sells and services Cash Machines in Singapore and the UK. Whilst the Head-Office is in Australia, SprintQuip was able to expand into Singapore supported by NetSuite OneWorld technology. The company then entered into the UK by acquiring a local company and quickly onboarding them to the platform. Basford says that NetSuite with NextService was crucial for the business to expand its operations overseas.

The Benefits of OneWorld Technology

Technological advances that were inconceivable even a few decades ago allow us today to connect easier than ever, erasing borders, homogenising cultures and globalising business. But that does not change the fact that companies must be adapted to perform on a local level. NetSuite OneWorld supports global and country-specific requirements addressing the complex multinational and multi-company needs of global organisations.

Businesses exporting their services overseas to access a broader customer-base realise that data transparency becomes a priority when sharing critical information with trading partners and consumers. NetSuite OneWorld benefits businesses by offering real-time visibility into business performance through financial and operational dashboards and reports. These global business insights enable them to build trust and achieve better visibility to all parts of their businesses to drive improvements and react faster and more effectively when problems occur.

Building an international team these days can be easily achieved through partnerships, alliances, and direct hiring, thus having technology that supports global workforce management is essential for companies planning to trade overseas. NetSuite OneWorld is web-based, allowing employees, board members and associates to access the platform from anywhere in the world in their language. It also supports popular mobile devices for data and functionality on-the-go. User permissions management in the business workflow is available within the platform.

Expanding to offshore markets comes with a whole new set of operational challenges in global accountancy, rules, taxation and regulations vary significantly for each country. OneWorld makes NetSuite the leading ERP for global SMEs with its best-in-class currency manager, which includes 190+ currency and exchange rates allowing users to do business across the globe from day one and accepting many forms of payment. Other functionalities include currency conversion and financial consolidation across business units and a comprehensive range of international tax structures. You can adjust for currency, taxation and legal compliance differences at the local level, with regional and global business consolidation and roll-up.

Opportunities to establish a service business abroad

Don’t underestimate the international demand for your services, globalised consumers are increasingly willing to experiment with services that bring something new to the table. Several Australian service companies with innovative technology are growing overseas as a result of a flattening global economy and the possibility to focus on vertical rather than geographic markets.

The service industry will see substantial growth, the Australian Performance of Services Index (Australian PSI®) is expected to be 46.80 points by the end of this quarter and to continue to grow to 53.00 points by 2021. Australia, Singapore and Sweden have been named as the most prepared countries for technological changes, according to the Economist Intelligence Unit (EIU). They have also been called the most attractive places for investing in tech companies from 2018 to 2022.

Starting a business nowadays is a simple and straightforward process in virtually every country, and a number of governments actively encourage foreign investors to set up shop, through taxation perks and benefits. With the right technological support and strategy, businesses can start trading overseas in less than a month, and it doesn’t cost thousands of dollars. Technological advances in the past decade like NetSuite OneWorld are taking Australian brands globally more quickly and efficiently than ever offering organisations a way to handle multinational and multi-company needs.

NetSuite not only enables international expansion with OneWorld, it is one of the leading accounting/ERP platforms in the world that also offers Customer Relationship Management, eCommerce, Warehouse Management, Field Service automation and Professional Services Automation solutions. Such a comprehensive platform helps multinational businesses align their complete operations. NetSuite’s Centralised BMP nature gives real-time visibility for businesses, ensuring consistent compliance management and alleviating the need for several disparate software. All areas of the company can be run by a single cloud software anywhere in the world.

Need a specialist’s free advice?

Feel free to call an expert in NetSuite OneWorld and NextService for Field Service Businesses today. Find out how cloud-based technology can help your service business become an international beast.

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The Smoke is Dissipating, How can Technology Providers Help Australian Agroindustry?

The Smoke is Dissipating, How can Technology Providers Help Australian Agroindustry?

The last three years have been severe for Australian farmers as a whole. Recovering and restoring business after the bush fire season might be a part of our strong culture and producers down under are used to adapting and surviving. Still, with a bush fire season that broke all records of destruction, prevailing drought conditions and intense floods, it’s not hard to imagine why the agroindustry is under stress. It is sure to take an unprecedented amount of time and effort to rebuild the industry and get going.

Young and old growers around the country are bringing change into the sector to reactivate their farms, as with everything, modernising agricultural practices using automation and other technology promises a way forward. Every day more farmers adopt the idea of using technology to combat their problems, lower their costs and improve their efficiency.

The need for better farm technology leaves the onus on automation and machinery manufacturers to come up with stand-out products and services. Technology service providers play now, more than ever, a pivotal role in helping farmers get back on their feet and thrive again.

Machinery Distribution Business Opportunities in The Agroindustry

Some help is coming to farmers through Regional Australian governments who have been providing a number of relief packages to relieve the bush-fire affected producers. For example, NSW is set to offer grants of up to $75,000 for affected victims. These grants can be utilised to revamp vital infrastructure and machinery that could make an immediate impact on production.

Machinery distributors have an opportunity to provide new products and services to farmers in need all across the country. For technology providers to succeed in the market, great farming products must come along with great service, guidance and counsel. Service technicians on the field must sympathise with the pains of growers and enable them with better solutions, maintenance and insurance plans.

Haying has seen a constant growth of above 3% annually and its expected to amount $10b in value by 2026.

A promising sector where technology providers can help is the haying and forage industry, and it is no secret that machinery is its backbone. The haying industry has seen constant growth at a rate of above 3% annually irrespective of problems and prejudices. Even after the 2019-2020 Black Summer bush-fire season, which severely affected this vital cog for Australia, the sector is expected to grow to more than $10,360 million in value by 2026. Hence, this proves to be an opportunity for machinery manufacturers and distributors to increase their margins in sales, lease and maintenance plans.

Recent data on Australian farmers also shows how there is a real disposition to spend on automated machinery. They recognise that in the long-run, automation will bring yields that are worth the initial time and investment. Machinery distributors should not wait for the farmers to come to them, but they should get to the field and help to grow the industry.

One significant example of the benefits in farm automation is the robots that SwarmFarm Robotics and Green Atlas developed for an apple farm in Queensland and are now planning to distribute for the industry. Tasks like flower counting and thinning operations that required several human hands in the past can now be done with the help of machinery with ease. Additionally, the accuracy and precision of these Aussie-made robots are exemplary. Australian growers are open to embracing technology that makes life easy for them.

It’s not just new inventions that are getting the producer’s attention, though. Heavy machinery like tractors are being sold in increasing numbers around the country. Last December 2019, we saw an unprecedented 7.5% increase in tractor sales compared to December of the previous year. Although smaller tractors are weathering a decline in sales, the over-200hp category is in its hay days. From April to June 2019, there was a 44% surge in the numbers sold.

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7.5% increase in tractor sales from Dec 2018 to Dec 2019

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Surge in sales in the over-200hp tractor category

Distribution and Servicing Challenges

The increasing interest of farmers in heavy machinery and automation also means that Agroindustry machinery distributors need to be on the top of their game to reach the farmers. Moreover, heavy machinery also comes with a need to be maintained and serviced correctly. As machines become more intricate, technical issues are something that farmers cannot deal with themselves. Therefore, an in-field team with exceptional technical abilities is vital to retain customers.

Scheduling of these technical staff again can be a daunting task. However, here also, technology comes to the rescue. NextService is a scheduler running on the popular NetSuite platform that connects dispatchers to the technical staff. 

When it comes to repairs, farmers want a quick response followed by a one-time visit to resolve the problem. However, that is far from reality, as 23% of the time the technician will have to do a check-up visit. With a NetSuite-based platform like NextService, the check-up visit rates can go down. Technical staff are equipped with advanced diagnostics and predictive inventory that can be monitored and re-located by dispatchers on a centralised platform improving the First-Time-Fix rate.

Moreover, the process becomes much more straightforward as the manufacturer can track the components that have been serviced using interactive dashboards. The dashboard gives vital data about the work being done by the technicians, the time required to complete it and the average time to complete such requests.

That’s not all, if a customer opts for a service contract along with the machinery, service providers don’t have to worry about executing their farm machinery servicing request on time. This is also done through the NextService software.

Enabling Long-Term Business Relationship.

Farming is one of those areas which has been left behind by the automation and technology revolution. However, farmers are gradually realising the potential of adopting these new changes. Furthermore, after the late bush-fires and flooding which have ravaged existing infrastructure, farmers, as they always do, will fight to get back on track. This presents an excellent opportunity for Agroindustry machinery distributors to enable firm business relationships with producers and help them reactivate the industry.

For service providers, having a strong technology backbone like NetSuite can be a great differentiator that enables business. The penetration rate of field service application in Australia is quite low at 25%, and as technology providers, leader distributors will be those who embrace modernising systems themselves. Backed up by a reliable business platform like NetSuite + NextService agroindustry field service providers can nurture their customers old and new and maintain a long and stable business relationship.

Need a specialist’s free advice?

Feel free to call an expert in Machinery Distribution ERP Systems today. Find out how cloud-based technology can make your agro-technology distrubution and servicing business a real customer-centric beast.

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