SOURCE: Aberdeen Group, a Harte-Hanks Company

May 03, 2007 13:29 ET

Best-in-Class Service Providers Achieve Over 90% Part Fill Rate and First Time Fix Rate Through Effective Service Parts Execution

Leading Companies Are Four Times as Likely as All Others to Achieve 90% or Higher SLA Compliance Rate

BOSTON, MA -- (MARKET WIRE) -- May 3, 2007 -- Among leading service providers recently surveyed by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), 82% leveraged service parts execution and distribution solutions to achieve operational and financial excellence. Such organizations reported 17% higher part fill rate and 22% higher first time fix rate than all other companies.

The recently published study -- "Managing the Last Mile - Driving Effective Service Parts Execution" -- reveals that best-in-class firms are twice as likely to stock spare parts on asset owner/operator sites and three times as likely to rely on third-party logistics providers to handle their service parts execution as all other companies.

"Managing seemingly dichotomous goals of meeting customer demand for higher asset availability and reducing service costs is a top of the mind issue for many service executives," said Micky Long and Amit Jain, research analysts and co-authors of the report. "By leveraging logistics network partnerships, adopting enterprise-wide parts execution processes, leading firms are achieving the two goals."

Other attributes of best-in-class organizations looking to optimize the last mile include:

--  89% closely align service parts planning with procurement/supply
    management
--  82% have a VP or higher executive overseeing P&L for service
    operations
--  68% adopt standard, trackable processes for parts pick-up and drop-off
    (PUDO)
--  96% frequently measure impact of service parts fill rates, customer
    service levels on overall profitability
    
Based on the research, the report authors recommend that service organizations consider the following strategies to improve last mile service parts execution:
--  Replace localized parts management processes with a single, integrated
    set of best practices that touch all elements of parts fulfillment, from
    forecasting and procurement to logistics, storage and returns.
--  Position and provision spare parts according to SLA commitments.
--  Audit parts supply chain processes at least twice per year, more
    frequently if possible.
--  Enhance technician visibility to part inventories and enable them to
    order service parts.
    
Nearly 170 companies participated in this quantitative study, including Canon Australia, Fujitsu Siemens, Northrop Grumman, and Sun Microsystems.

This study is made available to the public through the underwriting of: Kuehne + Nagel Inc., Choice Logistics, RedPack Network and Smart Software.

To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=3976

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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