As we transition into an increasingly automated world, more and more of your competitors will be adopting digital transformation to keep ahead of the curve.
Though we understand it can be daunting to think about automating your processes, it’s crucial to consider the risks of staying manual and getting left behind. After all, people can’t really compete with computers when it comes to speed, efficiency and accuracy when completing calculations.
In this post, we’re going to explore the risks associated with not using automated rate calculation.
What is automated rate calculation?
Automatically calculating your billable rates, and costs for labour and parts can be a complicated process. The rates will depend upon labour rates, parts costs, buy-price, mark-ups, and call outs which will not only vary between different contracts but also by priorities.
Rate calculation is often done manually with multiple touchpoints and possible points of failure. A service management platform should be capable of handling this complexity and of saving huge amounts of administrative effort in your ‘back office’.
Aeromark streamlines this entire process, by calculating rates and the part costs needed to complete a job, automatically, leaving little room for human error or pricing disputes. No more manually inputting a ‘schedule of rates’, let Aeromark automate your entire rate calculation system.
Let's dive into a few risks involved when your system is still updated and managed manually…
1. You leave yourself open to human error
Rate calculation is a bit of a minefield; from different engineers of varying seniority levels, different billable rates and an enormous catalogue of parts, the job is complex and often relies on knowledge retained in individual's heads.
When keeping back-office processes such as this manual, by default, you become vulnerable to the limitations of people.
When it comes to your finances, it’s important to limit opportunities for error and revenue leakage. Automated rate calculation can take this high-pressure aspect of the job off your team’s shoulders, guaranteeing precision and efficiency every time.
For further information on how Aeromark mitigates human error, you can check out our post on the benefits of dynamic-scheduling.
2. Staff retention risks
Manual back-office work can often be mundane and repetitive; gone are the days in which we had no choice but to assign these administrative tasks to a person.
In a world of increased automation, employees assigned to these positions may feel unfulfilled, unsatisfied and generally unhappy with their work, leading to an increase in staff turnover.
By automating rate calculation, amongst the other processes that Aeromark takes off your plate, you can free up the time of your valuable staff members to really move the needle in your business, whilst creating a sense of healthy challenge.
3. You waste resources
Manually calculating rates can be a waste of your company’s time and money. Whether through morale boosting initiatives due to unsatisfied staff, or constantly recruiting new people due to high staff turnover, unhappy staff performing mind-numbing tasks can be a drain on your company’s resources.
Another sure sign of the need for automated back-office processes is how your business handles growth.
Does adding more field-based engineers usually mean you need to add additional back-office resources too?
Automatic rating, as one process within the wider automated back-office, enables the software to support your growth without eroding margins with new admin resources.
4. You’re risking customer satisfaction
How many times have you had to credit and reissue invoices, or double check the work of a back-office staff member because of errors?
No more price disputes, misquoting or delayed processes. Just streamlined, efficient systems that delight your customers.
Every billing error means giving your customers additional admin to process the credit note you have issued, which is both annoying and time consuming for them.
Just how many credit notes do you issue? It's another sign of a back-office in meltdown.
5. Cash flow issues
Cash flow is crucial in any business, yet manual processes can often slow it right down; for example, back-office errors may result in delayed invoice and payment. A good system will automate documentation, quotations, billing and approvals.
By using automated rate calculation, each job becomes more streamlined. Correct rates for engineers, times and parts are automatically assigned from the get-go, meaning invoice creation and customer payments are sped up as a result - helping you get paid faster.
So, should you make the change?
No one of these points alone is enough to kill your business but as digital transformation continues to rise over time, they will stack up.
Software such as Aeromark exists to neutralise the day-to-day headaches that you face, leaving you free to maximise the growth of your business whichever service industry you are in – don’t let your back office eat your margin and restrict your growth.
Through using automated rate calculation, as part of a streamlined and agile back-office process, Aeromark allows you to make more informed choices for your business, optimise your workforce and have greater peace of mind that you are providing your customers with the best and most accurate service possible, end to end.
At Aeromark, we understand that service efficiency should be driven from the back office. If the back end of your operation is chaotic, prone to error, or has far too many admin touchpoints the rest of your company, and ultimately your bottom line, will suffer as a result.
