Manufacturing companies weigh in on the maturity of their after-sales strategies
Our Service Supply Chain Survey polled manufacturing companies in Europe to gauge maturity levels in after-sales supply chain. The results clearly indicate that the more advanced the service supply chain, the larger the company’s gross margin.
of respondents don’t have their service supply chain embedded in their total value offering
don’t capture data from their remote installed base
don’t use their data for continuous improvement
share their data with customers
Our first service (or after-sales) supply chain survey clearly indicates that the stronger and more advanced the setup and organisation of the service supply chain, the larger the gross margin of the company.
For many companies, an innovative service supply chain offering is key to maintaining their competitive edge. While buyers were traditionally concerned about quality, functionality and price/investment, the focus is gradually shifting towards service of all types: after-sales service, advice and uptime.
Incorporating the service supply chain into the total value offering begins with a clear objective of what the company wants to achieve with its service offering. There’s no single solution that fits every company or customer, so a thorough analysis of the service potential must be completed first.
By not seeing it as a value-creating aspect of the firm, a great deal of potential and benefits are lost or improperly exploited.
Only 10% of survey respondents have their service supply chain embedded in their total value offering
Product-centric structures and organisational silos aren’t sufficient for a competitive service offering, so organisations need to align, adapt and, if necessary, even transform to become completely customer-oriented.
There are four distinct stages in the organisation process, with the first being the most basic and the last the most beneficial for a service supply chain.
Only 12% of companies have the most advanced structure with an independent service organisation
Figure: Organisational structure
Most businesses acknowledge that field service and spare parts sales are major contributors to revenue and profit, especially with a large installed base.
Key areas for good field service management are identified in the figure below.
Figure: Field Service Management
Only four percent of survey respondents have a service parts forecast with predictive modeling or machine learning.
In today’s economy, the most important part of a service offering remains the supply of spare parts. Most companies still use a reactive approach driven by the requests of customers.
Over 60% of respondents use no forecast at all, or a forecast based on historical data
One third of companies don’t capture data from their remote installed base. Nearly one quarter use the data for continuous improvement.
To fully enable a solid, sustainable service supply chain, the necessary technology needs to be implemented to optimise the service offering by developing enhanced solutions and providing in-depth data analysis.
Only 17% share the data with customers
Figure: Data capturing method (%)
The PwC Service Supply Chain Survey identifies five stages through which an organisation evolves from being product-oriented to becoming customer-centric. Companies striving to become a service leader need to plan, adapt and prepare to move through the stages step by step.
Organisations that set clear goals are most likely the ones that would reach the next level.
Figure: PwC Service Supply Chain Maturity Model