I look at the lifecycle of Electronic product, be it business or consumer and how it is traditionally consumed, supported and touched throughout its life and the after sales costs to the manufacturer which simply erodes their margin and just believe that -: There is another way!!!!!
The word currently being used is servitisation. This time its not just a buzzword but the word and its implications and opportunities can and do vary widely depending on who in the world of consultancy or supply chain you speak to.
Today its mooted that Brand value no longer sits with the manufacturer, that the drive to globalisation has eroded brand value to a large degree and there is clearly some truth in this claim.
Its also fair to say, it does increasingly sit in the after sales arena but in reality today “Brand value” can and should be in both manufacture and after sales. This is where servitisation as a manufacturer strategy can turn a traditional after sales cost on its head and turn it into an array of innovative opportunities to enhance the “Brand value” and create real opportunity for profitable recurring revenues, Enhanced “Brand value” and Customer retention through a strategy of Total Lifecycle product support. Part of this drive has to be Environmental but reality says if you ask a manufacturer to embark on a strategy of extending the life of their products. Their only conclusion is, what? and sell less new product A classic response but my contention is that a servitised strategy would in fact increase profitability through holistic lifecycle thinking. Brand value would increase and environmental credentials proved. Customer loyalty gained through increased touch via lean economical and quality enhancing supply chains
Current antiquated and disjointed supply chains are incapable of delivering such a concept.
The re-design of the after sales supply chain is critical to delivering the concept of servitisation and this can only be delivered effectively as a strategy by a new breed of solution providers.