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VENDAVO IN AFTERMARKET SPARE PARTS
WINNING THE RACE TO VALUE
VENDAVO INDUSTRY SUMMARY#5: Aftermarket Spare PartsMARCH 2017
AFTERMARKET OR AFTERTHOUGHT?
With Industry 4.0 – the so-called ‘fourth industrial revolution’ – in full swing, robotics, augmented reality, 3D printing, artificial intelligence and machine learning are changing the face of manufacturing.
And the winds of change are sweeping through every industry – including the automotive, aviation and industrial manufacturing sectors, which are being transformed by modernisation and digitisation.
But some players are so focused on digital transformation of their primary activity, that they’ve overlooked the profound implications these new technologies also have for their aftermarket business.
And so, while they ride the wave of modernisation and embrace the digital revolution when it comes to production, their approach to spare parts is less proactive.
In the race to value for Aftermarket Spare Parts, pricing is your proven secret weapon.
THE SPARE PARTS PRICING QUANDARYOptimising aftermarket pricing means overcoming a major obstacle: the sheer complexity of the business, which makes it difficult to manage. Manufacturers have tens of thousands of parts, across a wide variety of models of varying ages, and a large number of clients spread across the globe.
Many organisations have to hold significant inventories of parts for extended periods – 20 years not uncommon in the aviation industry – with pricing that’s often set once a year and rarely reviewed. Fluctuating supply and demand should mean that prices are regularly adjusted so they’re optimised, but that’s seldom the case.
The result is that these organisations are leaving margin on the table across their entire spare parts inventory. As parts become scarcer, they’re unable to capitalise on the premium they could obtain from them. And as others reach the end of their life, they’re unable to price them optimally to reduce inventory.
The fundamental problem is one of visibility. Organisations are not able to see this multidimensional puzzle of parts, products, clients and geographies clearly enough to get the right price on any spare part, every time.
VENDAVO PROFIT AND MARGIN MANAGEMENT SOLUTIONS FOR AFTERMARKET SPARE PARTSVendavo works with some of the world’s leading automotive, aviation and industrial manufacturing companies to optimise their aftermarket business. We help companies to maximise profit on every sale.
At Vendavo, one size doesn’t fit all. We design a tailored pricing strategy around your aftermarket business that maximises revenue opportunity – and on that’s aligned with your goals and business objectives.
We’ve enabled organisations to manage the incredible complexity of their parts business and unlock a previously untapped revenue stream.
This not only provides a hugely attractive alternative to traditional cost-cutting. It also gives them the financial manoeuvring room to stay agile, continue to invest in R&D, and meet the challenges of competitive threats and increased price pressure in their production business.
We’ve helped them to create order from disorder, and turn a secondary revenue stream into a powerful weapon to give them a competitive edge in a globalised world.
A PROVEN SOLUTION THAT DELIVERS RESULTSVendavo helps hardware players price with confidence based on hard facts and detailed data, not gut feel or historical deals.
We’re Vendavo, and we could do the same for you. Talk to us today.
WINNING THE ‘RACE TO VALUE’
www.vendavo.com
Vendavo gives these organisations unprecedented visibility and insight into the large inventories they hold. We achieve this by:
• Identifying and eliminating margin leakage across the entire range of aftermarket parts, analysing every data point to build up a picture of current pricing.
• Optimising segmentation across all products, clients and geographies, to ensure best price and best margin opportunity.
• Creating dynamic pricing models that are constantly updated to reflect current supply and demand, product lifecycle and market dynamics.
• Analysing sales and deal effectiveness, as our advanced algorithms identify in real time improvements that can be made, and easy wins that can be achieved.
VENDAVO GLOBAL HQ401 East Middlefield RoadMountain View, CA 94043Tel: +1 (650) 960-4300Fax: + 1 (650) 962-0645
VENDAVO EUROPE SALES HQOne Kingdom StreetPaddingtonLondon W2 6BDTel: +44 (0)[email protected]
