“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large,” Henry Ford said. Decades later, many companies are still struggling to heed his advice.
For many of the world’s largest automotive and commercial vehicle companies, aftermarket service and parts operations essentially define their business. Some companies have built the reputation of their brands and their business models on the back of excellence in service and parts management.
In these uncertain times where “cash is king” there is a shift of attention to further optimize and exploit the full potential aftermarket business can bring to a company’s profit margin. Deriving more value from your service parts supply chain is becoming more important than ever.
In these turbulent times, there are several key challenges in the service industry which require full attention:
Improving the performance of your business can significantly boost aftermarket revenue, profitability, and cash flow. Plus, a well-run service business can improve customer relationships and loyalty by ensuring that customers get the services and parts they need, at the right time for the right price.
Industry trends suggest:
Service management also presents the opportunity to collect important customer information to gain access to the competitive install base of products at customer sites, and to cement customer relationships. These key details can be leveraged and used for competitive advantage.
Unfortunately, most service organizations have been unable to achieve high enough quality and efficiency to capitalize on these opportunities; however, this situation is rapidly changing.
Service Transformation is most effective when a holistic approach is taken. The Service Effectiveness practice incorporates Supply Chain, Logistics, CRM and Human Capital practices to provide this holistic approach.
To help you reap all the rewards the service industry has to offer, Deloitte's Service Effectiveness Centre of Excellence provides expertise and innovative solutions in the following domains based on a wide range of projects and clients that Deloitte is serving in various industries worldwide: