The Importance of OEM Service Parts Manufactures

If you are an OEM service parts manufacturer and are frustrated by a lack of focus on your product, give us a call.  3ng Consulting knows how to help you recalibrate your business and your OEM partnerships.

OEM service parts are strategic and dynamic.  They add revenue and profit, provide a doorway to customer retention and satisfaction, and help build the relationships necessary to sell new vehicles.

OEMs are too distracted to see the big picture when it comes to most service parts and the manufacturers that supply them.  At 3ng Consulting, our focus is on the capabilities OEM service parts manufacturers possess and the different ways they (and their OEM partners) can effectively develop, market, and profit from these core competencies. 

OEM Service Parts Manufacturers are Defined by the Factory Parts Business

OEM service parts manufacturers have to convince OEMS that the service parts business is more complex and strategic than the OEM factory parts business if they want to improve their success matrices.  

Most OEM service parts manufacturers are defined by the needs of the factory business they also support. They agree to this because of the promise service parts offer, but the relationships that result are often counterproductive to service parts success. 

The cost and delivery of factory parts consume OEM attention. OEMs are in the business of manufacturing vehicles, so product costs and operational efficiencies are their primary focus. But factory parts are different from service parts and should be managed differently.   

OEM factory parts’ all-in costs are well defined, and OEM factory parts manufacturers serve no role in supporting sales growth.  So, OEMs aggressively negotiate favorable parts prices and service levels without pushback.  The same is not true for OEM service parts.

OEM Service Parts Manufacturers Need a New Value Proposition

OEM service parts manufacturers are the key to parts and service success, but OEMs treat service parts like factory parts: they focus on price and delivery.  So OEM service parts manufacturers are rarely encouraged to support their product beyond acquisition and logistics.  

This role is incompatible with the complexities of the service parts business and ignores the value OEM service parts manufacturers possess.  3ng Consulting understands what OEMs need and what OEM service parts manufacturers offer.  Let us help you redefine your value proposition. 

OEM Service Parts Manufacturer Consulting

Redesigning OEM Service Parts Strategies

OEMs must work directly with OEM Service Parts Manufacturers to build coherent parts strategies. The OEM service parts business is defined by uncertainty.  This uncertainty presents challenges and opportunities.  

3ng Consulting knows how to navigate this uncertainty.  Our experience informs our ability to work with OEM Service Parts Manufacturers to create new or bolster existing core competencies and then deploy them in support of: 

  • Increased OEM service parts market share
  • Lowered costs
  • Increased revenue and profit


Service Parts Manufacturer Consulting Insights

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