• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » After-Sales Service, Parts Management to Become More Important to Manufacturers' Profitability, Report Says

After-Sales Service, Parts Management to Become More Important to Manufacturers' Profitability, Report Says

December 24, 2014
IDC Manufacturing Insights

Highlights of the report include:

• Many manufacturers' service organizations still rely on spreadsheet, legacy or a modified in-house ERP system to plan the unique and very complex needs of service management and repair parts networks. Too often, investment decisions are delayed until service performance or inventory goals erode.

• Investment in service parts planning provides the critical foundation and nerve center for enabling predictive and prescriptive planning capabilities, optimizing parts inventory, and providing opportunities for broader leveraging of connected service platforms.

• When considering an investment in SPP technology, IDC Manufacturing Insights recommends that in addition to due diligence on industry-specific capabilities and customer references, manufacturers probe on a vendor's vision and investment plans for enabling more predictive service processes along with plans for leveraging 3rd Platform technologies.

• Technology selection teams must be well balanced with line-of-business, functional, and IT representation and should context a broader and deeper perspective in required SPP technology.

"In the coming years, manufacturers will continue to provide both competitive differentiation and higher margins by bundling or providing added services with products, including product-as-a-service business models where customers pay for product operational uptime and performance, over time," said Heather Ashton, research manager, Service Innovation and Connected Products, IDC Manufacturing Insights. "[We predict] that by 2020, onboard service revenue will outpace product-related revenue by a factor of two. Customers benefit from such service programs through optimized usage of equipment and products, higher productivity and decreased support costs."

The majority of manufacturers are just starting down the path toward service innovation. The goal of connected service platforms is to transform after-sales service from reactive- to predictive-focused processes. With the emphasis on predictive, the paradigm of the service supply chain shifts toward early warning mechanisms, maximized uptime, and needs for precise synchronization of service events. This includes onboard and self-communicating diagnostics, providing early warning to operating issues, more responsive networks of service parts, and service depot suppliers as well as highly networked maintenance facilities.

The research and consulting firm recommends technology selection teams garner a broader vision of connecting the process components that will foster service innovation. This would include stronger process and information linkages among product lifecycle management, service lifecycle management, and customer relationship management. A further consideration is the trend across multiple industry segments of fostering new and existing product innovation by incorporating more and more software and digitally based product components within physical products.

Source: IDC Manufacturing Insights

RELATED CONTENT

RELATED VIDEOS

Logistics Service Parts Management Business Strategy Alignment Global Supply Chain Management Industrial Manufacturing Pharmaceutical/Biotech
KEYWORDS aftermarket service Business Strategy Alignment Global Supply Chain Management IDC Manufacturing Insights Industrial Manufacturing Logistics logistics services parts inventory Pharmaceutical/Biotech Service Parts Management Supply Chain Analysis & Consulting Supply Chain Management supply chain management; industrial manufacturing
  • Related Articles

    70% of Manufacturers Evaluating or Implementing Smart Technologies for After-Sales Service, Report Says

    Internet of Things Transforms After-sales Service, Report Says

    U.S. Retailers to Spend More on Supply Chain Management This Year, Report Says

IDC Manufacturing Insights

IDC Predicts Half of Worldwide Supply Chains Will Use AI by 2020

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • A GROUP OF WORKERS RANGED IN AN OFFICE, OF DIVERSE RACE, GENDER, AGE AND PHYSICAL ABILITY

    Podcast | The Supply Chain Workforce of the Future Is Already Here

    HR & Labor Management
  • GSCMS-Promo.png

    Watch: Introducing the Global Supply Chain Marketing Summit

    Education & Professional Development
  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing