🇮🇳India

Inefficient Technician Routing & Overtime Costs

3 verified sources

Definition

Dispatchers manually assign technicians to maintenance jobs without considering geography or time constraints. A technician assigned to 4 jobs across 3 cities in one day spends 2–3 hours on commute and works 10–12 hour shifts. Overtime @ 2× wage adds ₹500–1,000/technician/day. Fuel inefficiency costs ₹200–400/day/technician.

Key Findings

  • Financial Impact: ₹7–15 lakhs/annum for 10-person technician team: Overtime (₹750/day × 250 working days = ₹1.875 lakh) + Fuel inefficiency (₹300/day × 250 days = ₹75k) + Equipment idle time (₹5–8 lakh) = ₹7–15 lakhs total
  • Frequency: Daily (ongoing technician dispatch cycles)
  • Root Cause: Manual dispatch with no route optimization; no real-time location tracking; no integration of geography with job assignment

Why This Matters

The Pitch: Machinery maintenance companies in India waste ₹7–15 lakhs annually on technician overtime and fuel due to poor dispatch routing. Automated scheduling with route optimization reduces travel time by 20–30%, eliminating unnecessary overtime.

Affected Stakeholders

Dispatch Coordinator, Field Technician, Operations Manager

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unbilled Technician Services & Invoice Delays

₹10–25 lakhs/annum for ₹5 Cr maintenance company (2–5% revenue leakage from unbilled/delayed invoicing); estimated 40–80 delayed/missed invoices/month

GST Late Invoice Filing & ITC Mismatch Penalties

₹54k–1.2 lakhs/annum for ₹5 Cr company: GST penalty (₹1,080–1,620/late invoice × 50 invoices/month = ₹54k–81k) + ITC disallowance (₹3,000–9,000/flagged invoice × 20–30 monthly) = ₹1.2 lakhs total; additional 20–40 audit response hours/month

Accounts Receivable Delay from Dispatch Documentation Lag

₹35–50 lakhs for ₹5 Cr company: Additional 15–20 AR days @ 10% annual cost of capital = (₹5 Cr / 365 days × 15–20 days × 10% / year) = ₹20.5k–27.4k/month = ₹2.5–3.3 lakhs/year. Working capital release opportunity: ₹35–50 lakhs

Technician Underutilization & Idle Capacity

₹5–10 lakhs/annum for 10-person team: 20–60 idle hours/day × 250 working days × ₹500/hour (blended technician cost) = ₹2.5–7.5 lakhs. Lost revenue opportunity: ₹200–300/technician-hour × 40–60 unused hours/day = ₹5–10 lakhs

Service Delays & Customer Churn

₹10–20 lakhs/annum for ₹5 Cr company: 2–3% customer churn × ₹5 Cr = ₹10–15 lakhs; estimated 10–15 lost contracts/year × ₹1–2 lakh contract value = ₹10–30 lakhs. NPS impact: -15 to -25 points vs. on-time peers

Poor Visibility into Technician Utilization & Resource Planning

₹5–8 lakhs/annum: Over-hiring cost (2 unnecessary technicians @ ₹3.5 lakh/year = ₹7 lakh), Severance/separation costs (₹50k–₹1 lakh per technician), Misallocation inefficiency (technician idle in low-demand region while other region has backlog)

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