While the entire aftermarket world is revolutionizing with smart technologies, following outdated parts management processes is like trying to paddle upstream. It is not only holding back the OEMs’ (Original Equipment Manufacturers) growth, but also causing challenges for them in reducing costs, improving efficiency, and achieving consumer satisfaction.
Since the after-sales is heavily reliant on the order process, quick services, and customer support, failing to adapt to the latest smart tech-based spare parts ecosystem can affect everything from production efficiency, revenue model, and customer satisfaction, to the complete strength of the supply chain ultimately.
So, it’s time to gear up not only to adapt, but also to innovate and thrive using modern spare parts management. Through this article, let’s learn about outdated manufacturing technologies to minimize the challenges while identifying how modern smart tech adoption can help you empower the entire parts management system and warehouses.
The Hidden Cost for OEMs of Having an Outdated Spare Parts Management
The outdated spare parts management system not only hinders OEMs’ growth but also undermines the overall efficiency and productivity, resulting in poor after-sales service and customer dissatisfaction. Here are the major pain points associated with the traditional cataloging methods:
Manual Work
The traditional method for tracking inventory, orders, and delivery updates, connecting suppliers, and forecasting leads to multiple challenges. These challenges may include rising warehouse costs, increased risk of parts obsolescence, excessive inventory, or complete stockouts of the critical components. That’s not all, but this approach can also hinder their growth due to disconnected supplier networks and inaccurate forecasting for orders, shipments, and delivery. These all directly impact the consumers’ trust and reliability towards the brand and revenue.
Inefficient Aftermarket Service
Since the outdated parts management system heavily relies on a manual approach, it may lead technicians to struggle identifying, locating, or procuring the correct spare parts on time, which can lead to a decline in service quality. The longer repair time, the incapability of providing spare parts on time, multiple service visits, and incorrect part delivery result in annoyed customers. Poor service not only leaves customers dissatisfied but also erodes brand loyalty and causes significant reputational damage.
Lack of Data-Driven Insights
The disconnected data and fragmented procurement processes due to the dysconnectivity of systems like ERP (Enterprise Resource Planning) and PLM (Product Lifecycle Management) can severely impact the OEMs’ efficiency, sales, and brand reputation. The lack of a centralized, integrated spare parts management system makes OEMs lose the holistic view of the demand patterns, supplier performance, and their inventory stock. This clearly defines the absence of actionable data, which further hinders proactive maintenance planning, accurate forecasting, and strategic decision-making. Moreover, they end up losing opportunities for supply chain diversification, cost optimization, and even new service offerings.
Overcome the Challenges with Modern Spare Parts Management
Considering the challenges with the outdated parts management, it is clear that the OEMs not only remain stuck in the loop of errors, but also miss the opportunities for future growth. It is high time for them to adapt and implement a modern, automated spare parts management system. Understanding the importance of modern systems, many forward-thinking OEMs are already investing in technologies, including:
Robotic Process Automation (RPA) for Automated Workflows
Tasks such as inventory reconciliation, order processing, supplier connection, and stock calculation are automated now with the implementation of RPA technology. This helps teams to focus on more strategic activities and revenue frameworks while minimizing the likelihood of human errors.
Machine Learning (ML) and Artificial Intelligence (AI) Powered Forecasting
Use of technologies like Artificial Intelligence (AI) and Machine Learning (ML) for advanced analytics of historical data, along with producing accurate demand forecasts and identifying trends, helps OEMs minimize overstocking and stockouts. That’s not all, they can even reduce warehouse and labor costs by optimizing the complete inventory levels.
Optimized Service and Predictive Maintenance
With the use of IoT (Internet of Things) sensors and data analytics with ML, OEMs can anticipate equipment failure and proactively order the critical spare parts. This shift helps in rapid growth from reactive repairs to predictive maintenance. This further helps reduce downtime and boost customer satisfaction.
Better Collaboration with Suppliers
The modern spare parts system, through shared data and collaborative planning tools, strengthens relationships with suppliers with resilience and transparency. It further ensures the timely delivery of critical and necessary components.
Integrated Digital Platforms
Leaving the old cataloging methods behind, i.e., disparate spreadsheets and legacy systems, OEMs are investing and implementing centralized parts catalog software. With many options available on the market, it's essential to choose a solution that best fits your needs and ensures that it shows complete inventory details in an automated and easily searchable form. It should include features like 2D and 3D visualizations, VIN Search, AI-Powered search, integrated checkout cart, etc. It should also integrate easily with your existing ERP and CRM systems to ensure real-time data flow seamlessly.
Furthermore, the modern electronic parts catalog software must offer detailed product specifications, allowing dealerships to locate the exact spare parts smoothly. Such a single source of powerful solutions can help OEMs manage inventory in real-time, forecast parts demands, monitor supplier performance, and offer predictive maintenance using service history. It empowers OEMs in better decision-making across the entire organization, improving efficiency, reducing costs, and boosting overall performance.
Make a Smart Choice for Next-Level After-sales Growth
Considering all the factors we discussed in this blog, it is imperative to say that outdated parts management is no longer a minor inconvenience, and it significantly impacts the OEMs’ growth. Hence, adapting fast-paced, high-tech, and smart solutions like electronic spare parts management software, RPA, AI, and ML technologies is now a mandatory thing, not just a luxury.
By embracing such modern tech, OEMs can not only unlock their path for substantial benefits, such as improved production, better efficiency, but also reduce operational costs and take better data-driven decisions to build a more resilient supply chain. This further improves the dealer collaboration, after-sales experience, and service, which ultimately boosts customers’ loyalty towards the brand.
OEMs that fail to identify the need and the impact of modern spare parts management systems will see themselves falling behind in the race. A fair advice: make the right decision now rather than a delayed choice that will cost you more than you can endure.
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