Navigating the challenges of seasonal demand
On-demand labor platforms are not just for small or mid-sized companies. While they can help these companies become more flexible or gain access to new talent, they also provide tremendous benefits to very large Original Equipment Manufacturers (OEMs).
Fujitsu North America, a leading provider of technology solutions and multivendor services, undertook a strategic initiative to mitigate the high cost of field service delivery. Fujitsu was experiencing challenges with managing the peaks and valleys of field service demand. These challenges are driven by seasonality factors within the retail industry. Typically, Fujitsu experiences peak demand for project work (e.g., roll-outs, moves/adds/changes, and installations) during the retailers’ slow season.
It is too costly for OEMs like Fujitsu to staff to peak demand; doing so would be a losing proposition. On the other hand, staffing according to the valleys or average, annual monthly demand levels could lead to situations where Fujitsu misses SLA targets and loses customers.
Scalable success through a blended workforce
Fujitsu found that it can balance out the peaks and valleys in demand for projects by implementing a blended workforce model — effectively augmenting their W2s (full-time employees) with on-demand labor. The company turned to Field Nation’s platform for skilled technicians to support this new business model — finding reliable resources to support their Point of Sale (POS), desktop/laptop, server hardware/software, and kiosk needs. As a result, Fujitsu could finally focus its full-time technicians on emergency demand work.
The best of both worlds and extraordinary financial benefits
Fujitsu’s success with the platform led them to utilize it for another part of their service business known as Technical Courier. This service dispatches freelance technicians to the customer site to install and replace parts that are already delivered through an advanced exchange program. It was developed because a segment of Fujitsu’s customer base wanted the financial benefits of advanced exchange but lacked personnel to replace defective parts and return cores.
The financial benefits to Fujitsu of using the Field Nation platform for project work and technical courier service are numerous. According to Ray Caul, Vice President of Retail Managed Services, Fujitsu is able to reduce costs by 33% per technician.
These savings come from multiple areas. Technician rates on the Field Nation platform are approximately 50% lower than a fully burdened hourly rate of a full-time employee. Freelance technicians are paid a flat rate per work order, and Fujitsu does not pay for travel time, resulting in higher utilization and a 15% savings per work order. In addition, Fujitsu avoids recruiting, interviewing, and background check costs, which research indicates can be as much as $5,000 per new hire.
Caul views the economics of using the Field Nation platform as cost avoidance rather than cost savings, noting that the costs would be incurred either way. By using Field Nation, Fujitsu avoids the higher expense of maintaining a full-time workforce, proving to be a smart business decision for both the company and its customers.
