The Challenge
The world’s largest bedding provider, which develops, manufactures and markets mattresses, adjustable bases, pillows and other sleep and relaxation products, initially engaged National Service Alliance (NSA) as consultants because they had no internal service organization and needed to establish one. They had begun producing and selling mechanical beds and needed to understand what an internal service organization would look like and the process for establishing one.
The Solution
NSA designed a triage system for call center agents, which encompassed standardization of parts and a triage screening process that eliminated the need for extensive training. The company became importer of record and distributor for repair parts. A closed loop system was established to purchase, ship and track parts, track returns and track testing of returned parts, with the data used to manage credits for defective parts from the OEMs. Training in product repair was also developed, and NSA’s IRIS technology platform was integrated into the customer’s CRM, driving business analytics and reporting for management and engineeering groups.
The Result
What began as a consulting project has turned into an ongoing relationship lasting more than ten years. The new internal service organization developed by NSA brought first-time repair rates to 80%, and the end to end service solution supports engineering for quality improvement. The company has enjoyed significant savings as service call rates and warranty costs continue to decline. In the past year alone, the company saw a 20% reduction in warranty costs. This kind of performance has resulted in a valued relationship that has thrived even through customer leadership changes.