Understanding the Challenges of Spare Parts Business
Today’s spare parts businesses face increasing complexity and competition. OEMs deal with low volume and high part variants. The growing list of variants leads to massive warehousing, a large inventory of obsolete parts. Additionally, intricate logistical efforts are needed, because products must be distributed and transported over long distances with high requirements, in terms of delivery and date reliability. It is becoming critical for companies to focus on supply chain integration, including internal constituents (allied functions) and external trading partners (contract manufacturers, suppliers, transportation carriers, and logistics providers).
The CGN Edge Blog
Business Value of Aftermarket Services in OEMs
"A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large,” -Henry Ford, founder of one of the world’s largest manufacturing companies. This is the golden age of services. To survive and prosper, every company must transform itself into a services-based business.