Improve Margins By Looking at SCM Backwards !!!
Service and Support Supply Chain Management
Enterprises are always looking to their service side for greater profits, improved customer service, and greater competitive advantage. According to most research groups, aftermarket parts and services account for 7.5-9.5% of the GDP in the United States. With consumers and businesses spending more on spare parts and services year after year. SCM's have to maximize the value of the service supply chain requires management standard supply chain as well as Support Service Supply Chain. Advanced support service supply chain systems that can manage parts and products moving both up and down the chain aftermarket can deliver immense return on investment.
- Reduce inventory
- Better customer Service
- Reduction in supply chain costs
- The Service Side has great gross margins.
- Increase product sales. Customers learn you are there after the sale.
The service and support and aftermarket are becoming a very lucrative for companies in all different fields. Here are five important things executives need to know to drive bottom-line performance.
- Support and Production Supply Chains are not the same
- Support needs to link back to data to R&D, production & manufacturing
- Your typical ERP system are not designed for support supply chain logistics
- Building a Support supply chain requires a different team of players
- Include service managers and technicians when building the chain for greater customer service
- Develop the feedback loop making sure information is making its way back to production and design
Shameless Plug:
Earle W Morris MBA
Proven Executive Level Supply Chain Manager with a Strong Background in Logistics.
I am currently looking for my next Challenge.
To find out more about me click the link below for my C/V
Earle "Mo" Morris