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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Consumer Goods & ServicesEnhancing Competitiveness in the Service Industry Through Comprehensive Management of Equipment Assets Across Their Lifecycle

The service industry has long been recognized as a promising engine for growth. Compared to traditional manufacturing, it boasts higher growth potential, relatively stable demand, and low volatility. Additionally, the sector's capacity to create jobs and generate synergies with manufacturing makes it an attractive source of future value creation. However, challenges remain. In Korea, the service industry continues to grapple with low productivity, a fragmented structure, and excessive regulations, preventing it from escaping its low-value-added status.

Advanced Equipment as a Double-Edged Sword in Service Competitiveness

Our client, a market leader in the specialized security services industry, has built a robust business model that combines IT equipment with skilled labor to deliver reliable services. This unique approach allowed the company to reduce dependence on human resources and focus on leveraging high-quality equipment and innovative technology to boost productivity. However, to further enhance enterprise value, the company needed to improve the quality and cost-efficiency of its equipment while reducing the complexity of asset management.

Upon review, it became clear that the management of equipment assets posed a significant challenge. While the adoption of advanced technology and cutting-edge equipment facilitated service delivery, it also created operational and financial burdens. Existing equipment accumulated over time, leading to inefficiencies. Issues such as high damage and loss rates for in-use assets, rising costs of developing new equipment, and difficulties in disposing of outdated devices placed significant strain on the company's finances and operations. Paradoxically, the very assets intended to drive service competitiveness were hindering growth.

Maximizing Utilization Across the Equipment Lifecycle

To address these challenges, the scope of asset management was expanded to cover the entire lifecycle of service equipment. While the industry traditionally focused on acquiring new equipment, we identified the need to extend management to encompass installation, usage, collection, repair, reuse, and eventual disposal. Given the client’s nationwide service operations, frequent incidents of damage, loss, ad-hoc repairs, and improper reuse occurred across multiple sites. These issues not only compromised service quality but also led to unnecessary new purchases, increasing costs.

The project team identified the stages with the highest risks of inefficiency and quality decline, categorizing them into the "4Rs":

  • Repair: Fixing damaged equipment.
  • Reuse: Simple redeployment of used equipment.
  • Recycle: Processing and repurposing for further use.
  • Refurbish: Upgrading equipment to near-new condition under manufacturer standards.

From Internal Leakages to Supply Chain Innovation

The first priority was minimizing internal leakages. This involved reducing material losses, ensuring the collection of unused equipment, and preventing unauthorized reuse that could lead to customer claims. Detailed site-level insights and practical ideas from field teams were incorporated to elevate management practices.

Beyond internal improvements, the focus shifted to supply chain innovation. To overcome the limitations of internal efforts, the company explored partnerships with manufacturers and external experts specializing in repair and reuse. This culminated in the decision to establish a dedicated Refurbishment Center, responsible for verifying equipment to stricter standards before deployment. The center also aimed to leverage feedback from field operations (VOC) to enhance equipment performance. Recognizing the need for capabilities akin to those of an equipment manufacturer, the client determined that an in-house center was essential for long-term success.

Fast Execution and Industry Expertise Enable Rapid Progress

During the project, the client decided to proceed with the establishment of the refurbishment center, forming an internal task force to define its operational framework and successfully launching the center within the project timeline. According to senior executives and team leaders, “The ability to create and operationalize a previously non-existent function in such a short period was made possible by the expertise of consultants with experience in the relevant industries.” The center has since entered a stabilization phase and continues to expand its role.

A Holistic Approach to Service Equipment Management

Unlike traditional approaches that focus narrowly on introducing new technologies or reducing purchase costs, this project stood out for its lifecycle-based approach to equipment management. By incorporating functions that had not previously existed and leveraging Looxent’s specialized expertise, the client successfully launched a groundbreaking initiative in record time. This initiative not only addressed immediate operational challenges but also laid the foundation for sustainable competitiveness in the service industry.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.