Lucrative but "Risky" Aftermarket Business—Service and Replacement Parts SCM
P.J. Jakovljevic and Olin Thompson - July 28, 2005

The Business Challenge

Growing pressure to improve customer responsiveness and profits has lately changed the traditional role of service management for spare and replacement parts. As competitive pressures push more products to a commodity-like business model, many manufacturing companies are increasingly relying on customer service to retain or establish a competitive advantage. Many manufacturers and distributors are also beginning to recognize that there are significant revenue stream and ways to increase customer satisfaction in the aftermarket once their product has been sold...