Winning in the Aftermarket

The Aftermarket is the market for replacement parts, accessories and equipment for the care or enhancement of the original product after its sale to the customer especially in automotive and heavy-duty business fields. However, this trend is emerging in also other fields of machinery. KERRY could establish aftermarket management either from scratch or improve the existing structure depending on the strategy and expectations of the enterprise.

 

This is the golden age of services and enterprises must transform itself to be successful in services-centric view. However, increasing cost of operations for the enterprises, tough competition and increasing expectations of the customers in terms of quality and pricing have resulted AFTERMARKET to be emerged. The Aftermarket is the market for replacement parts, accessories and equipment for the care or enhancement of the original product after its sale to the customer especially in automotive and heavy-duty business fields.

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In industries, such as automobiles, heavy-duty, white goods, industrial machinery and information technology, enterprises have sold so many units over the years that their aftermarkets have become four to five times larger than the original equipment businesses. Only in USA, businesses and consumers spend approximately $ 1 trillion every year on assets they already own from aftermarket which is a both profitable business which could win customers undying loyalty by providing aftermarket services. In fact, one number that tells a company how loyal its customers are likely to be is how high they rate the firm’s aftermarket and aftersales services.

 

Despite the aftermarket's obvious charms, most organizations squander its potential since third-party vendors have become so price competitive that enterprises which are original equipment manufacturers (OEMs) lose most of the aftermarket the moment the initial warranty period ends. This challenge is more significant in the recent years since customers don’t expect products to be perfect, but they do expect manufacturers to fix things when they break down. Not surprisingly, customers are usually unhappy with the quality of after-sales support if they could not have aftermarket (genuine or re-branded) solutions for their products which are economic but high in quality. KERY supports the enterprises to develop their aftermarket solutions (OEM/OES or Re-branded) (Parts, Tools, Equipment, GETs (Ground Engaging Tools), Wears-Tears, Oil, Lube, Consumables, Accessories, Components, Equipment, Tools, Filter Kits, Overhaul/Maintenance Kits).

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ASSESSMENT

• KERY conducts assessments to develop and implement the correct strategy.

• KERY designs processes, commercial incentive models, management models, service models, in line with the business strategy & business plans after the assessment.

• KERY also prepares the feasibility report for an investment in establishing or improving aftermarket team and network.

 

DESIGNING AFTERMARKET CONCEPT, MODEL, ORGANIZATION & STRATEGY

• The Strategy Set-up includes a package of concepts, approaches, processes, business model for team and organization set-up with channel establishment to meet the requirements of the enterprise.

• The Process Set-up includes preparation of procedures, processes, work flows, job profiles, duties/responsibilities and documentation in the aftermarket management system and communicating with the management and the employees of the enterprise by conducting seminars.

• The Organization Set-up includes recruitment, training and performance management of the employees in the aftermarket team. Our services is not limited with setting up the team. It also includes the design, implementation and then audit of the teams, warehouses, work stations, employees and the execution of the aftermarket services, aftermarket marketing as well as the infrastructure for the successful operation of aftersales in the enterprises.

• The Competence Set-up includes designation, configuration and specifications of products for aftermarket and their training to employees of the enterprise.

• The Customer Support Set-up includes the foundation of customer support function with CRM system, 7/24 customer support system and spare part support system. We design each support system with its processes, procedures, teams and infrastructure such as inventory set-up, stock management and audit system after assessment of the needs, expectations and requirements of customers with legal compliance.

• The Customer Value Management Set-up includes added-value services for generating both added value for the customers and profit gain for the enterprises which is a quality-centric process, starting from final quality control, PDI, take-over and periodical cares during warranty with specific performance metrics on product performance to extend the product life on site and generate additional services and revenue streams for the enterprise with service and performance agreements. By this set-up, the aftersales services are transformed from a source of customer complaints into a profit generating center with the management dashboards (KPI), performance metrics and the reporting module.

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ESTABLISHMENT/IMPROVEMENT of AFTERMARKET MANAGEMENT SYSTEM

• Distribution Management: KERY supports the enterprises in each step in the distribution system in its business fields and interrelations of all segments from manufacturer to consumer including the distribution channel, sales organization, supply chain, trade association, trade press and after market trends.

• Manufacturing Management: KERY examine, design and implement aftermarket management manufacturing functions, including market planning, sales training and management, advertising, selecting and directing employees, establishing and controlling budgets, executive responsibilities, managing for profit, trade shows and clinics, market research, branding, remanufacturing and manufacturer representative firms.

• Retail/Wholesale Management: KERY explore and identify wholesale and retail segments of the aftermarket, including the organization, capitalization, layout, product lines, inventory control, purchasing, personnel, financial control and other management topics. In this step, KERY also look at functions of consumer-oriented marketing for all segments. This includes retail attitude, pricing and promotion, retail/ wholesale combinations, identity and store image, influence of aesthetics and design, purchasing procedures, employee hiring, personnel management and merchandising and display.

• Category Management: KERY conduct seminars to the enterprise how to become a warehouse distributor and bring an understanding of the best practices of Category Management with the key steps in the Category Management process and its application to the process through review of the products and to channel partners.

• Logistics & Supply Chain: KERY focuses on management of the flow of products from raw materials sourcing and acquisition through delivery to the final user, including logistics and transportation planning, information technology, response-based strategies, third party logistics and relationship management which design and implement the role of logistics and distribution in the marketing process.

• Field Sales Management: KERY supports enterprises in gaining skills in Field Sales Management including selling skills, expense management, time management, merchandising/advertising plans, sales report writing/sales forecast plans, trade show management and human resource skills.

• Seminars: KERY also concentrates on providing the employees of the enterprise with supervised seminars, webinars and on-the-job training. Objectives, evaluations, written log and a study of the organization are designed to provide a realistic learning experience. 

• Globalization and Challenges Management: Challenges are reviewed with the enterprise confronting the aftermarket with emphasis on the changing distribution channels and their effect on manufacturing. Concepts are introduced by KERY for traditional retail distribution and how these changes will be managed in the multinational business environment

• Aftermarket Management Research Management: KERY shall conduct researches and projects based on the aftermarket business of the customer including advertising, merchandising and promotion, personnel requirements, pricing and inventory, building, design and layout, product and service selection and financial considerations.

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ESTABLISHMENT/IMPROVEMENT of AFTERMARKET OPERATIONS

Each enterprise has significant number of aftermarket solutions, spare parts, filters, kits, consumables, accessories, components, equipment, lubes, oil and other materials, either genuine or re-branded that they need to stock and deliver to the customers when they need. This is a challenging task which could bring losses to the enterprises and the dissatisfaction to the customers. 

KERY establishes Spare Part and Aftermarket Operations System which includes processes, procedures, work flows, job descriptions, best operating practices, reporting and web portal for establishment and management of:

• Warehouse for enterprises, their branches and dealers including selection of location, capacity planning, lay-out planning, storage planning & addressing, selection of equipment/rack/storage areas, RFID/Barcode Systems, Order Tracking Portal and consulting to meet the needs and the product flows of the customers to determine the most appropriate storage solutions.

• Spare Part Management System for registering, tracking and reporting the results of the processes for Customer Order Management (RFQ, Offer, Order, Pick & Pack, Transportation, Invoicing); and the operations of S&OP, supply chain, inventory, procurement, pricing, quality management, material resource planning and financial results.  

• Spare Part Configuration System for the management of the IDs/RFID/Barcodes/Shelf Address/Shelf Location and configuration of products supported with spare part catalogues, price lists, stock & inventory lists

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OEM/OES or RE-BRANDED AFTERMARKET

OEM/OES or Re-branded Aftermarket (Parts, Tools, Equipment, GETs (Ground Engaging Tools), Wears-Tears, Oil, Lube, Consumables, Accessories, Components, Equipment, Tools, Filter Kits, Overhaul/Maintenance Kits). 

 

KERY enables the enterprises to develop Aftermarket Solutions either from the Original Equipment Manufacturer (OEM) or Original Equipment Supplier (OES) or from the companies competing with the OEMs or OESs in terms of quality and pricing for the customers who can not afford to buy genuine or Original Equipment parts or solutions. However, selection, approving and accrediting suppliers is a challenging work that KERY shall support the enterprises to develop the best possible Aftermarket Solution to their customers who have identical solutions to OE parts/solutions but with different packing and part numbers.

 

The Aftermarket Solutions shall bridge the gap between what customers expect in terms of price/quality. OE Solutions could offer with specifications, quality level, best fit and resistance as the OE part.

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​MARKET RESEARCHES

Go-to-market activities must be justified by the revenue potential of each market, the degree to which competition exists in those countries, and the market demand data. To that end, it’s critical to conduct extensive market research to evaluate and prioritize which global markets to enter. KERY is experienced in market researches. We support the enterprises in defining the objectives of research, determine research design, collection & assessment of data before presenting the research report.

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MARKETING MIX and THINK GLOBAL/ACT LOCAL

KERY supports the enterprises to define their Marketing Mix (Product, Price, Place, Promotion), Globalization and Localization Strategies in the parts and after sales services for their home and target export markets so that the enterprises could adapt themselves and their strategies to the markets in which they are active.

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CORPORATE IDENTITY

KERY establishes Corporate Identity includes the standardization of the after sales services team, operations and the servicing dealer network under corporate identity that includes visuals, processes, manuals, documentation and work flows as well as its marketing communication, corporate identity seminars, architectural projects, etc.

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REBRANDING

Some enterprises could have strategy to "hide" the brand, packing & ID number of the OEM/OES Solutions in order to avoid competition with the other market players who are selling the same products. KERY offers these enterprises to make Re-branding for these Aftermarket solutions under their brand, packing and Part or ID number. KERY introduces solutions to enterprises for their re-branding process including strategy building, concept formation, processes, sales strategies, marketing mix, marketing communication, launches, pricing, market segmentation, corporate identity, S&OPs and implementation of re-branding activities.