Jack in the Box
Service call avoidance & warranty tracking mean big wins for Jack in the Box
After five years as a Corrigo Enterprise customer, restaurant chain Jack in the Box was ready to make some changes. First, the company integrated its Service Providers into the CorrigoPro Network in 2009, harnessing Corrigo’s best-in-class vendor management tools to gain complete visibility into facilities operations. Jack in the Box manages the repair and maintenance for more than 430 Jack in the Box and 300 Qdoba corporate restaurants from its Service Center in Phoenix, Arizona.
Small Changes, Big Savings
Jack in the Box took a two-pronged approach to generating savings in the new service environment it was creating. Through Corrigo’s Service Call Avoidance and Warranty Tracking features, the company has generated more than $4 million in savings since 2008.
"With Corrigo, we have seen a 12% to 15% reduction in our overall cost of parts. That doesn’t even take into account the amount of time that a technician is running up and down the highway. Our variance and inventory management with spot checks and being able to compare what’s in our enterprise system to what’s on the truck is very automated, very easy to manage and meets all the internal audit requirements our company has."
Call Avoidance and Self-Help
Jack in the Box took a look at the data and realized that any time a service provider was dispatched to one of its locations, the company was paying $100, whether or not any service was performed. Leadership shifted its focus, making avoidance of unnecessary service calls a key priority for all of its restaurants nationwide.
To make the change, Jack in the Box used Corrigo’s Self-Help feature to determine which of its asset repairs were returning “no problem found,” and then analyzed its digital catalog of work orders to develop troubleshooting steps for these problems. By empowering restaurant leaders and call center staff with these easy-to-follow Self-Help checklists, Jack in the Box saw significant savings right away.
Self-Help changed Jack in the Box’s corporate culture, too, and adoption by the company’s restaurants has meant a behavioral shift that continues to head off tens of thousands of dollars in unnecessary service calls every year.
Once the Self-Help culture was ingrained, Jack in the Box wanted to automate its warranty tracking and eliminate the costs it was incurring for paying its Service Providers for work under warranty. With Corrigo Enterprise, the company was able to standardize its operations by placing an automatic warranty on all assets for which a work order was assigned. When a work order is issued for an asset labeled as under warranty, Jack in the Box is alerted as to which Service Provider should be assigned, and the work order is issued with a $0.00 Not to Exceed limit.
Jack in the Box determined that each work order issued under warranty had previously cost the company, on average, $250 per request. In the first year of warranty tracking, the company saw a remarkable $407,000 in savings, and was on track to equal or exceed that amount in year two.