Aftermarket Outsourcing Projects and Programmes
Aftermarket outsourcing is growing in popularity because, for some manufacturers, aftermarket parts and service is seen as a non-core activity. For others, aftermarket suffers from the constraints of the systems, processes and organisation imposed on it by its more dominant manufacturing sibling. It’s a sad fact that In most manufacturing businesses today, despite the greater profit potential of aftersales when it is done well, the aftermarket business is considered to be the poor relation to manufacturing!
Outsourcing your entire aftermarket parts operation or elements of it, such as service parts logistics, can therefore be a useful way of professionalising your aftermarket business quickly with minimal capital investment. Doing this right can boost your revenues and margins greatly. Getting it wrong however, can damage customer service, sever customer loyalty and impact multiple aspects of your business including your core manufacturing.
The biggest mistake that a business can make when outsourcing is to leave the job to the Procurement department and their chosen service provider. Fundamentally, outsourcing is a business change programme and whilst Procurement needs to be involved, your programme needs to be run by a senior business manager with change management experience and strong knowledge of the area to be outsourced.
Our consultants are specialists in outsourcing aftermarket service parts operations, parts planning, parts logistics and contracting with third party service partners to plug capability gaps and develop aftermarket parts and service businesses. We are business change consultants with experience of fixing problems with existing service partners or implementing new outsourcing initiatives.