Product Support Development and Growth
Product Support growth within a dealership is phased in through four stages as a strategy to introduce products and services based on an approach that will maximize the utilization of the asset, meet the current service requirement within the market place, and a progressive approach that is in line with the company’s financial investment plan for growth.
The four phases have been identified as follows:
• Initial Phase identifies the basic tooling required to repair a customer’s machine as quick as possible. The tooling will meet the needs of maintaining and repairing vs. rebuilding.
• Expansion Phase I will focus on providing high demand replace vs. rebuild options for the customers that provides the opportunity to lower operating cost per hour, while expanding the distributorship offering of profitable products and services.
• Expansion Phase II introduces more specialized tooling and equipment that will provide a strong competitive advantage through a total solutions approach.
• Expansion Phase III will focus more on the balancing of the three previous phases with information obtained from the machines in the market place to identify and time specific market opportunities closer to the point the customer’s need.
The dealership's individual branch stores may not have the capabilities of all four phases, but should be able to pull from a centralized pool of the stengths that will cover the four phases over time.
Monday, December 21, 2009
Saturday, October 3, 2009
Move from a Repair/Rebuild Service Provider to a Total Equipment Maintenance Management Service Provider
The equipment dealers of today are being challenged to become more than a dealership that stocks parts and have technicians on staff that can be dispatched to repair a machine in the field.
There are two main key drivers to this needed change:
1. The customers of today are raising the expectation level of the equipment dealers by including the dealer more in the equipment management side of the business.
2. The need for the equipment dealer to separate their capabilities from the non-OEM repair competitors. These competitors typically were started by individuals that worked for an OEM equipment dealership at one time, and have decided to get into the repair/rebuild business. Typically these companies limit themselves to repairs/rebuilds, and do not become involved in the overall equipment life cycle. This piece of the business has (and always will be) the OEM equipment dealers core foundation.
To meet the challenges of the two key drivers the OEM dealers must move from a Repair/Rebuild Service Provider to a Total Equipment Maintenance Management Service Provider.
Listed below are the four levels of products and services that will move the product support areas from a repair/rebuild service provider to a total solutions provider.
• Repair/Rebuild Service Provider. Work force, facilities, tooling, techniques, communication and systems to quickly return equipment to production. Selling products and services. This is a core requirement for any OEM equipment dealer.
• Failure Prevention. Maintain equipment in peak operating condition for extended, uninterrupted operating periods of time. Integration of interdependent systems of products and services. (fluid analysis, Undercarriage/GET management, Lube Services Agreements, use of GPS diagnostics).
• Efficient Use of Resources. Manage capital and expenses to achieve customer/OEM dealers objectives. The OEM equipment dealer becomes accountable for customer achieving underlying benefit of the services provided (Repair& Maintenance Agreements. Availability guarantees, repair cost guarantees are a couple of examples of the expanded role of the OEM dealership.
• Optimize Equipment Life Cycles. Plan and optimize life of equipment and components. OEM equipment dealer bears responsibility for the customer’s success in equipment maintenance management, including equipment replacement planning (Total Equipment Management). This includes knowing when to replace a machine beyond the number of hours, or condition of the machine. Knowing the market as to trade values, auction pricing, in conjunction with the current life of the machine.
Not all customers will want the dealership to be involved in all four areas. Some customers will always call when the need a machine repaired, and others will expect the other levels of support in varying degrees.
What is important to the dealership is move more of their customer base from just fixing what is broke to being a part of managing the asset.
There are two main key drivers to this needed change:
1. The customers of today are raising the expectation level of the equipment dealers by including the dealer more in the equipment management side of the business.
2. The need for the equipment dealer to separate their capabilities from the non-OEM repair competitors. These competitors typically were started by individuals that worked for an OEM equipment dealership at one time, and have decided to get into the repair/rebuild business. Typically these companies limit themselves to repairs/rebuilds, and do not become involved in the overall equipment life cycle. This piece of the business has (and always will be) the OEM equipment dealers core foundation.
To meet the challenges of the two key drivers the OEM dealers must move from a Repair/Rebuild Service Provider to a Total Equipment Maintenance Management Service Provider.
Listed below are the four levels of products and services that will move the product support areas from a repair/rebuild service provider to a total solutions provider.
• Repair/Rebuild Service Provider. Work force, facilities, tooling, techniques, communication and systems to quickly return equipment to production. Selling products and services. This is a core requirement for any OEM equipment dealer.
• Failure Prevention. Maintain equipment in peak operating condition for extended, uninterrupted operating periods of time. Integration of interdependent systems of products and services. (fluid analysis, Undercarriage/GET management, Lube Services Agreements, use of GPS diagnostics).
• Efficient Use of Resources. Manage capital and expenses to achieve customer/OEM dealers objectives. The OEM equipment dealer becomes accountable for customer achieving underlying benefit of the services provided (Repair& Maintenance Agreements. Availability guarantees, repair cost guarantees are a couple of examples of the expanded role of the OEM dealership.
• Optimize Equipment Life Cycles. Plan and optimize life of equipment and components. OEM equipment dealer bears responsibility for the customer’s success in equipment maintenance management, including equipment replacement planning (Total Equipment Management). This includes knowing when to replace a machine beyond the number of hours, or condition of the machine. Knowing the market as to trade values, auction pricing, in conjunction with the current life of the machine.
Not all customers will want the dealership to be involved in all four areas. Some customers will always call when the need a machine repaired, and others will expect the other levels of support in varying degrees.
What is important to the dealership is move more of their customer base from just fixing what is broke to being a part of managing the asset.
Friday, September 4, 2009
Providing Contract Lube Services
Providing contract lube services can only be sold effectively if the dealership provides the value added services that are not currently available internally, or being provided by the current service provider. A couple of key value added elements that must be provided are:
1. Machine inspection that encompasses more than just changing the oil and greasing the machine. Develop a machine inspection form that utilizes the customer's suggestions, the OEM's inspection recommendations, and the safety features of the machine (back-up alarm, seat belt and wiper blade condition are a couple of examples).
2. Note other repairs that need to be reviewed, noting the priority. Some of the needed repairs may be a higher priority than others. The higher priority items should be scheduled as soon as possible, while the other repairs can be added to a "backlog" list to addressed at at time when the machine will be scheduled down for other repairs.
3. Review and report back on fluid sample results. It is important to notify the customer that everything is okay, as much as it is to notify the customer there is a problem. The customer deserves knowing what is being done to manage his asset.
4. Manage the schedule for the next service. Keep abreast of when the next service is due, what was done during the last service, and what was left undone to schedule the repairs if possible.
Contracting, or out sourcing, lube services should be a positive experience for the customer and a great opportunity for the dealer to provide value added services that assist in managing the asset.
1. Machine inspection that encompasses more than just changing the oil and greasing the machine. Develop a machine inspection form that utilizes the customer's suggestions, the OEM's inspection recommendations, and the safety features of the machine (back-up alarm, seat belt and wiper blade condition are a couple of examples).
2. Note other repairs that need to be reviewed, noting the priority. Some of the needed repairs may be a higher priority than others. The higher priority items should be scheduled as soon as possible, while the other repairs can be added to a "backlog" list to addressed at at time when the machine will be scheduled down for other repairs.
3. Review and report back on fluid sample results. It is important to notify the customer that everything is okay, as much as it is to notify the customer there is a problem. The customer deserves knowing what is being done to manage his asset.
4. Manage the schedule for the next service. Keep abreast of when the next service is due, what was done during the last service, and what was left undone to schedule the repairs if possible.
Contracting, or out sourcing, lube services should be a positive experience for the customer and a great opportunity for the dealer to provide value added services that assist in managing the asset.
Thursday, September 3, 2009
A beginning to share ideas and experiences in the construction equipment business
The postings will hopefully provide an opportunity to share ideas that strengthen an equipment dealership's success in providing product support to its customers.
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