Going spare at a lack of parts – how OEMs can handle the Coronavirus crisis
Posted: by Stericycle on Feb 25, 2020
If the Coronavirus has taught us anything, it’s how fragile many of our global supply chains truly are. Jaguar Land Rover has blamed the disease for a severe parts shortage, saying that its British factories are set to run out of parts within the next two weeks due to a lack of supplies from China. Canny manufacturers may have secondary sourcing agreements in place that will allow them to get parts elsewhere, however even this is debateable as the stress the Chinese shutdown has placed on the system may be too great to overcome.
For an industry that is already facing significant threats – the Coronavirus is also being cited as the reason that Chinese car purchases have tumbled 92% since the start of the year – this is yet more bad news. Coupled with the rapid shift to electric cars and new EU regulations on fleet emissions, many OEMs may be facing the prospect of issuing profit warnings in the coming months.
With this in mind its more important than ever that manufacturers look to maximise all their revenue streams, included one that is all too often left neglected – aftercare. If there is a silver lining to be found in the supply chain disruption, its that the shortage of parts may well mean that independent garages are unable to meet customer needs, presenting OEMs with an opportunity to capture more of the market.
However, translating this opportunity into tangible revenue increases requires OEMs to dramatically improve their customer outreach and relations. This means demonstrating an ability to understand and anticipate their needs – particularly around replacement parts.
Thankfully, with data cleansing and predictive analytics, it’s possible to not only get insights about which customers might be in need of aftercare services, but also to spot disaffected customers and engage them before they start shopping around at competitors. These tools can make a significant difference in helping manufacturers build better, longer-lasting relationships through superior aftercare service sales, in turn providing a platform to capture more of the market during a rough period of international supply chain disruption.
Many OEMs are already employing this technology and seeing substantial improvements in their ROI as a result. At RPM we know that the aftersales market is constantly evolving because we do our research.
You can read more about how consumers are influencing the automotive aftermarket in our RPM insights reports https://www.rpm-crm.com/aftermarket-insight. You will be surprised at how simple it can be to increase your aftercare sales.