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  • Optimize OEM Aftermarket Revenue by Clearly Categorizing Your Available Parts

    Posted on Thomasnet.com by Randall Lorenz

    "This article is the third in a five-article series running daily on Thomas Insights this week.

    OEMs should categorize the parts they provide to their customer by type rather than lumping them all into one bucket referred to as “parts.” Each category is unique, so each should be managed accordingly. When an OEM adds a category of parts to its product line, it therefore increases and improves the service the OEM provides to its customer.

    Categorizing Your Parts

    Consumables

    Typically some type of fluids or materials that the manufacturing process requires to produce the product. For example, this would include ink, adhesives, and welding wire. An example of a company that has control of its consumable products is HP for their home and office printer ink cartridges.

    • In many cases the consumable products are supplied by a third party – but why not also by the OEM?
    • Developing the consumables is a critical priority when developing a product. If necessary, utilize a third party to develop the consumable via a contractual agreement that allows you to brand and sell the product directly to your customers.
    • The more technically advanced the machine itself, or the quality requirements of the product produced on the machine, the greater the need and justification for the OEM to supply the consumable.

    Wear Parts

    Parts that are consumed over a period of time. Tires, brake pads, filters, and lubricants for a vehicle are great examples of wear parts.

    • Manufacture as many of your wear parts as possible to protect your intellectual property.
    • If manufacturing isn’t a viable option, private label as many of your wear parts as appropriate.
    • Give preference to suppliers who will private label their parts and components.
    • The lifecycle of your wear parts should be tracked for each installed machine; contact the customer when the replacement is due.
    • Wear parts replacements, including a field service visit, are key components of a preventive maintenance agreement.
    • Provide a list of wear parts with pricing with a new machine quote and ship these parts along with the new machine"...
      [Read more at Thomasnet.com]