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The Cost of Inefficiency

For businesses large and small alike, inefficiency should always be a concern.  Even the smallest inefficiency can lead to a costly hit on your bottom line.

Let’s do a bit of math here…

Say you have 10 teams in the field and the average team loses 30 minutes per day.  Doesn’t sound like much, does it?  Hold on!  That actually translates into 5 billable hours per day that is being mis-managed!  At a hypothetical billable rate of $125 per hour, that equals to:

  • $625 a day
  • $3,125 a week
  • $162,500 a year

I don’t know about you, but I wouldn’t mind an extra $162,500 in my pocket!  And that’s just for a small 10-team organization! Imagine what this translates to if you had 100 teams, just add a zero to that last calculation! Your company would be missing out on $1,625,000 a year due to inefficiency.  The point is, even the smallest flaw in a system can lead to costly inefficiencies.

Question: So how can YOU make more money, while reducing the stress of running the front office?


Answer: You optimize efficiencies!

Lets take a look at the 4 most common failures in efficiency…

1.  Scheduling in the Field.

My head runs on zip codes, cross streets, highways, and traffic patterns.  All of these things are important when scheduling your teams in the field.  It just does not make sense to schedule a team on the north end of town and on the south end of town on the same day, not only are you wasting time, you are wasting fuel and causing frustration for your field workers and your office staff.  Optimizing your route will save you time (=scheduling more jobs), save you fuel (=less out of pocket costs), and save you labor costs (=reduced payroll spending).

2. Issues with Communication.

I experienced this first hand today.  A client called me to report a breakage.  The team didn’t report the breakage, and the field manager didn’t report the breakage.  Can you imagine my horror!?!?!?  How should this have been handled? The other way around!  Things break, it happens.  But we don’t EVER want to sweep it under the rug!  Most clients are incredibly understanding, especially when they are communicated with in a timely manner.

This is where field service software comes in to save the day.  Field apps provide you with real-time tracking of jobs and up-to-date information.  Your field workers and field managers should be able to add notes and take pictures in the field and add them directly to a clients’ profile.  The team at the office is immediately notified and they will have all the information that they need to communicate with a client in a timely manner.  No more waiting for the team or field worker to get back to the office to find out important details about the days’ work.  This can lead to a vicious cycle that can again cost you time and money.  Having instant two way communication with the field will save you time, money and increase customer satisfaction.

 3. Technology.

Only one question here: Is it working for you?  Does it have the flexibility that you require?  Does it change and grow with you?  Ok that was three I admit, there are more but that is the basic idea.

 4. Trees.

Are you still printing on them?  Tracking information on paper lends itself to inefficiency in today’s day and age.  Waiting on field workers to return paperwork before invoicing  and billing slows the cash flow process.  The quicker you get paid the sooner you can count your chicks.  That is the bottom line.

So what is the takeaway here?

Efficient processes save you money and those results are going to be apparent on your bottom line.  Your field service software should work FOR YOU and assist in running a lean and efficient model.