Manufacturers are shifting their focus to Aftermarket Services. Why?
We hear “transformation” across most industries. It may be just another “buzz word”– but for the aftermarket repair services industry, this transformation means we have reached a milestone. This is especially true for an industry that has always been quietly present, strategic, but behind the scene in the global supply chain.
An article by Deloitte Insights , “Transforming manufacturing in the wake of the COVID-19 pandemic” written last summer by Paul Wellener, Robin Lineberger, Kerry Millar, Oliver Bendig, and Aljaz Hussain sums it up. The authors point out that “Manufacturers are increasingly turning their focus on aftermarket services, not only as a means to enhance customer satisfaction but also as a revenue-generating opportunity.” The article collects data from some 35 OEM’s and Industry Specialists.
Almost 12 months later, Renova is seeing major results of this shift in Manufacturer’s focus.
What is driving this ‘transformation?’
One of the more prolific factors is purely financial. In the COVID Era, Enterprise budget managers are looking at their capital expenditures more closely. They are interested in extending the product lifecycle of their infrastructure. Money is dear.
At Renova Technology, we believe Deloitte’s assessment to be true across our customer base. First, it is apparent that customers across all the industries we serve (commercial security, self-service kiosk, and gaming –to name a few) are now asking for repairs on devices they would have most likely just replaced in pre-covid times.
Another trend Renova has noticed is how our OEM customers are now requesting more frequently Renova’s value-added service lines. Some of these are forward/reverse logistics, parts configuration, customized advanced exchange programs. These are designed to strengthen our customers’ relationships with their customers (ie: brand-loyalty).
A Transformation is not without its challenges.
The change in model for OEMs to offer “after-market” support does not come without challenges. This is because it has never been a core competency for most OEMs and Manufacturers. Deloitte also adds “Manufacturers face multiple challenges in moving from their core business model of manufacturing and selling products to selling services and outcomes that completely transform their business.”
One way that OEMs can ramp-up and overcome these challenges is to utilize aftermarket repair providers – such as Renova Technology. Industry associations are one way to stay connected in the after-market services world.
For example, the Service Industry Association (SIA) and Reverse Logistic Association are two resources where one can attend webinars and trade shows to learn about the top 3rd Party Repair Providers across the country. Please read our blog series on aftermarket repair considerations. This details several check boxes that merit consideration in your search.
An Industry Supported
Fortune 500 OEMs across industries such as gaming, parking, telecommunications, IoT, fitness technology, healthcare, point-of-sale, self-service kiosk, audio, and lottery are just a few industries that leverage Renova’s complete after-market repair and service solutions.
If you have not read the full article by Deloitte, we encourage you to read and learn more about this transformation.