What it covers:
An evaluation of your parts business in its current state
A clear understanding of your aftermarket business strengths and weaknesses compared with recognised best practice
A realistic target of what your parts business could achieve in months or years if you were to bridge the gaps
A plan to make your parts business more competitive, faster growing and more attractive to shareholders or future buyers
Immediate 3-month quick hits and recommended growth actions for the next 12+ months
As a process, it is an expert led leadership level workshop, usually over 2 days, using a proprietary parts business evaluation methodology and a unique aftermarket performance benchmarking tool called Aftermarket 360™
Who is it for?
Established parts businesses that want a growth strategy, exit strategy or to improve performance
Original Equipment Manufacturers (OEMs) and Parts Manufacturers
Equipment Dealers, Parts Distributors, Retailers and Logistics Providers
Equipment Maintainers, Repairers, Fleet Managers and Users
Why it works
Service Growth Accelerator is the most advanced, scientific-based process ever created for growing aftermarket parts businesses
Over 200+ years of combined expertise and know-how encapsulated into a unique, proprietary diagnostic service
Our proprietary Aftermarket 360™ tool identifies capability gaps and solutions to drive stronger growth
Measures your progress against 10 growth levers and 80 capability indicators of aftermarket best practice
“Be in no doubt, you will leave this process with your big questions answered and workable growth solutions.”
Powered by Servispart’s Aftermarket 360™
At the heart of our Servispart Growth Accelerator is our proprietary Aftermarket 360™ toolset. This groundbreaking knowledge system combines research about you and your customers with proprietary know-how and industry best practice data from our ongoing aftermarket research. The results allow us to benchmark your firm against high growth companies and identify opportunities to position your firm for faster growth.
How it works
Pre-workshop
We guarantee the value you will get from your investment in the SGA
Aims
We agree the outcome you wish to experience, how we will measure success, and what benefits you expect from the process
Checklist
Under a Non-Disclosure Agreement (NDA), you provide us with some financial and operational data about your parts business
Upload
Our Aftermarket 360™ benchmarking tool is pre-loaded with your data, so we can arrive at the workshop fully informed and ready to go
Workshop Day One
Where we are now and what we will build on
Benchmarking
We work our way through 80 capability indicators measuring your parts business maturity, from poor to best practice
Diagnosis
Output from the benchmark is analysed to identify operational risks and unlock growth opportunities
Valuation
Assessment output is also fed into our proprietary valuation model to produce a current state market valuation
Workshop Day Two
The art of the possible and how best to get there
Action Plan
We identify and agree value growth actions to address priority capability needs and improve your risk score
Impact Analysis
We estimate and agree the financial impact of value growth actions on your P&L, balance sheet or cash flow
Re-valuation
We re-model your future state market valuation with those value growth actions completed
Post-workshop
Taking Action
Roadmap
We produce a summary presentation of our recommendations with finalised implementation plan
Next Steps
If you want our help to implement or govern/assure your plan then we’ll agree next steps for doing that
Support
We will never be far away if you need a quick answer to a problem or challenge and you can contact us at any time
What results can you expect?
A small section of our clients from different industry sectors
and what they have achieved through working with us
Innovative capability approach increases OEM revenues by £1.3 billion and delivers savings of £510 million
This global OEM was encountering obstacles to growing its aftermarket business. Servispart assessed the company’s aftermarket strengths and weaknesses and recommended solutions to unlock more growth. Analysis also revealed a significant opportunity to save £200 million from improving arising rate management and inventory management capabilities, which were two of the root causes of its growth obstacles. Our team was retained to help implement the recommendations.
In just 3 years, revenues grew from £0.25 billion to £1.3 billion, going on to generate £6 billion+ of additional air sector revenues alone.
International parts distributor unlocks growth and almost doubles equity value in under 2 years
A Management Buy In (MBI) team wanted to unlock the equity value of their parts business in advance of a sale within 2-3 years. However, growth was stalled, IT systems and processes outdated and staff demoralised. Value creation involved addressing these issues, refocusing the business and devising a value proposition to enable winning long-term parts contracts to stabilise revenues.
The result was 18% sales growth, 41% profit growth and a valuation multiple increase from 6.26x to 8x, thereby increasing equity value by 1.8x when sold two years later.
Specialist vehicle OEM refocuses to grow parts sales 5x and profits 10x in less than 12 months
This European OEM needed to transform its incidental parts business into a fast-growing aftermarket business to protect its lumpy, core manufacturing business. Our analysis identified a parts availability service opportunity and a service partner approach as the best way to access and leverage the necessary parts management capabilities quickly.
Within a year, parts sales grew 5-fold and profits 10-fold, generating total revenues of £190 million over the next 10 years.
Specialist industrial OEM unlocks a $5.1 billion contract win to secure its long-term future
This USA and International manufacturer was on the verge of closure because of its dwindling pipeline of short-term orders and struggling competitiveness. Our assessment identified tailored capability improvement plans for each of its three sites, requiring $multi-million investment. We were retained to advise on solution designs, implementations and provide independent governance/assurance at periodic and gated reviews to keep benefit realisation for the site-level and over-arching transformation programmes on track.
This resulted in a successful transformation and a new $5.1 billion, 10-year product supply and service support contract.
Domestic appliance OEM restores lost profitability with field service management improvements
This division of a global multi-national OEM was leaking £100,000 of profit every month for the last 5 years. A last ditch operational upgrade was expected to address the issues but went badly wrong just days before Christmas – its busiest time of the year. Servispart were called in and quickly identified multiple root causes and pain points. A robust plan was agreed with the board, to recover the integrated call centre, mobile service engineering operation and service parts centre. Ongoing project management, specialist aftermarket expertise and governance was provided to help deliver it.
First Time Fix improved by 11.5%, customer satisfaction by 18% and profits by £1.2 million per annum.
FAQs
We’ve learned over the last 30 years how to package know-how and leverage intellectual property (IP) in a business. Doing that effectively means concentrating a process that would normally take days, weeks or months for other consultancies, into a short intervention supported by packaged IP. By doing this, a consulting firm like Servispart can deliver extremely high value with repeatable quality. You are buying outcomes, not time. That’s why IP leverage is also one of the things we look at in our SGA process with you.
We’ve worked with companies of all sizes from Small and Medium Enterprises/Businesses (SME/SMB) to large corporates. For the SGA to be of benefit you need to have an established parts business. If you are an early-stage start-up or too small, then there are other fundamental priorities that precede the need for an SGA. However you can never be too big. We have run SGAs to evaluate aftermarket parts and service businesses within multi-billion multi-national companies and used it in many different ways over the years. In all cases, the benefits have far outweighed the costs.
If we think this is likely to happen, e.g. because you don’t have the information we need or your leadership team doesn’t have the conviction to implement the plan post SGA, then we advise not to do it. Some would say that there is success in discovering that a drive for growth is ‘not for me’ so let’s just concentrate on running a lifestyle business. On our side, we guarantee the value of your investment in the SGA, so if for some reason we have not delivered the value we agreed before we started, then we will fix it, or refund the full fee.
There is no doubt that we have seen the greatest success when the company leadership team demonstrates full conviction and embeds the 10 growth levers of Aftermarket 360™ into its operating plan and cascades implementation responsibility to all key people, thereby systematically and progressively pushing towards best practice in the priority areas.
Ultimately, success is down to you! All those who stay focused on the delivery of their agreed plan have gone on to achieve their goals. We can help you with this if you want us to. Sadly, though, some clients inevitably become distracted or good intentions are overtaken by other things, like key people leaving or joining, mergers, takeovers or acquisitions, or industry environment changes beyond everyone’s control. However, where strong governance is deployed and maintained, issues like these can still be overcome and your goals achieved.
We provide lots of testimonials and case studies from our clients in all of our sales literature, which is one of the reasons why it is our policy not to provide client references. The main reason though, is because we don’t believe it is our client’s job (or yours in future if you become a Servispart client) to do our selling job for us. We will answer any relevant questions you have and provide all the evidence we can. We also provide a full money back guarantee for all new clients undertaking an SGA.
The simple answer is an obvious question – why would you want to put off something that will drive immediate and long term value? We recognise there are certain events in any company that could reduce the value of an SGA if done in the wrong order, but if you have a genuine desire to achieve the sort of outcomes discussed in this guide, then there really is nothing that should get in the way.
Running the SGA in a face to face environment is ideal and we travel all over the world from our UK base to deliver it. However where this is not practical or when the client prefers, we deliver it via web conference. Also, if your leadership team is geographically spread, it can save you a lot of travel time and costs too.
This depends on your particular circumstances. We have run it for a single owner/CEO and for larger teams spanning multiple locations. The most important people to include are those whom you trust and NEED to buy into the growth plan, usually the board or executive leadership team of your parts business.
“We’re always happy to answer your questions if you’d like to contact us.”
“If your business is being challenged in this area, these are the people you will want to find solutions.”
Managing Director, Aftermarket parts and service provider (Industrial)
“Their ideas are at the leading edge of their discipline. That said, advice is always pragmatic, well thought through and very detailed.”
Managing Director, Aerospace and Defence, Deloitte
“Adds value on many fronts, from initial concept to full capability transformation.”
Senior Programme Manager, Original Equipment Manufacturer (Aerospace)
“No-nonsense approach wins respect and gets the job done. Highly Recommended.”
Practice Leader, McKinsey & Co. (Strategy Consultancy)
“Hugely experienced aftermarket professionals with a great depth of theoretical and practical skill.”
Global Logistics Director, Rolls-Royce (Aerospace, Defence, Industrial and Marine)
“The diligence, professionalism and drive for success demonstrated throughout the process has been of the highest standard.”
Commercial Director, Original Equipment Manufacturer (Automotive)
