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.
Saturday, October 3, 2009
Subscribe to:
Posts (Atom)
