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The Modern Manufacturer’s Guide
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The Modern Manufacturer’s Guide to Winning the Aftermarket 2
IntroductionManufacturers of heavy equipment and machinery work hard to provide great customer support
after their products leave the factory floor. That after-sale support system includes operating
manuals and parts books, warranty agreements and service contracts, and human resources like
help desk representatives, technical support engineers and dealership employees.
Traditionally, these functions required substantial resources and effort to successfully execute, and
top companies demanded premium prices to subsidize this higher level of customer service over
the lifetime of a machine.
Nowadays, technology allows even small- to mid-sized manufacturers to achieve levels of
aftermarket service formerly reserved for the largest players in the market. In fact, new software,
new hardware, and new methods of managing information enable manufacturing companies of all
sizes to improve the delivery of product knowledge both internally and externally.
These new capabilities have had a huge impact on early adopters. Since globalization has increased
competition for core product sales for many manufacturers, industry leaders have targeted after-
sale business segments as a way to differentiate their brands and maintain revenue growth. And
one of the biggest agents of change in aftermarket operations is technology.
New revenue growth in the after-sale period can derive from selling extended service contracts,
boosting market share for OEM-branded spare parts and supplies, improving the ability to offer B2B
online sales, and other related activities.
Let’s look at seven distinct business areas and processes where today’s manufacturer might gain an
edge by deploying technology and optimizing business processes!
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The Modern Manufacturer’s Guide to Winning the Aftermarket 3
#1 Shipping and Returns
The average cost of an eCommerce shipment return is $43, and retail consumers sent back $260
billion worth of online purchases in 2016. Imagine what it costs to send a 20-pound package by
express shipment. And what if the shipping location is hundreds of miles away from the nearest airport,
as is common with global mining and construction operations?
One manufacturer we know sent a number of incorrect vehicle transmissions to vehicle owners, thanks
to a simple part number misidentification. This single data error resulted in thousands of dollars
expended on express shipping costs, and unknown damage to the manufacturer’s reputation. Most of
the equipment makers we talk to at Digabit have at least one similar horror story.
The best way to reduce revenue lost from product returns is to avoid the errors that cause the majority
of returns: 1) buyers receive the wrong item; or, 2) the item doesn’t match the description or image on the
seller’s website.
According to the experts at CommerceHub, two best practices for reducing shipping returns are to
“build great product data” and “improve order fulfillment accuracy.”
As we described in the transmission example above, many shipping errors result from dealers, service
techs and product owners not having access to accurate part numbers or descriptions. One fix for these
type of errors is to deploy a modern parts management solution that uses a centralized database to
maintain part information. When a database is used to generate content, part numbers are more easily
kept up-to-date, and part descriptions are consistent across all a company’s documentation.
Another route to part ordering mistakes occurs when buyers are forced to copy part numbers by hand
from a parts book or list, then type them into another order form or repeat them to a customer service
rep. The best way to cut down these errors is to implement an electronic parts picking system with a
shopping cart—when buyers can click on a part to build a parts list they are much less prone to error
than if writing part numbers down on paper.
Eliminating these two common sources of ordering errors can cut nearly 50% of the annual costs for
product returns!
Read Now: LA Metro Case Study
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The Modern Manufacturer’s Guide to Winning the Aftermarket 4
#2 Technical Publishing
Are the people responsible for creating product documentation using a purpose-built system to store
and maintain parts information?
If information workers use desktop publishing tools (like Word, FrameMaker, InDesign or similar) to
generate parts catalog content, they are likely spending a large part of that effort on low-value activities.
There may be some writers and publishers who enjoy copying, pasting, and redoing the same menial
tasks over and over, but we’ve never met one.
In fact, International Data Corporation conducted a study in 2012 that found information workers waste
11.2 hours a week on average while creating and managing documents. These hours are specifically
defined as time spent on duplicative tasks such as formatting, copying and so on. That’s over 25% of a
full-time employee’s work week!
In addition to the mind-numbing workflows required by desktop publishing, parts catalogs created with
these tools are essentially electronic versions of paper documents. That means when a part number
or other detail is changed, the entire document must be revised and replaced in all the many locations
where it might be stored (e.g. web pages, dealers’ hard drives, a service technician’s tablet, and so on).
The ridiculous amount of work required to change the part number for a bolt that exists in 1,000 different
assemblies, on 50 different machines, means that the majority of manufacturing firms don’t even bother
trying to update documentation when a part is superseded. If they do, it takes publications staff many
hours using desktop tools, while the same task might take just minutes when the part information is
stored in a relational database.
When publishers generate parts catalogs dynamically from a central database, there’s little formatting
required once a template is built. The cost and labor savings are enormous, and leave the publishing
team with more time to create new content and keep existing documentation 100% accurate.
Read Now: Why Your Parts Data Is Wrong! White Paper
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The Modern Manufacturer’s Guide to Winning the Aftermarket 5
#3 Online Market Share
How much of an equipment manufacturer’s spare parts market share is being grabbed by competitors
who offer a better customer experience? Or by aftermarket vendors who simply do a better job at search
engine marketing? Have you ever searched for an OEM replacement part online and noticed that the first
page of search results was filled with third-party competitors? Yikes!
Many manufacturers still post PDF documents with parts lists on their websites. This was state of the
art a decade ago, but forward-thinking companies have moved on to better solutions.
Implementing a highly interactive user interface to display catalogs and other support documentation
opens up a world of possibilities to attract and retain online buyers. A web-based catalog lets
manufacturers offer shopping carts, rich media like video, and robust search capabilities. This is
overwhelmingly what modern-day B2B buyers have come to expect.
And if a traditional manufacturer is going to survive in the aftermarket against all kinds of competition
(perhaps including its own suppliers), they’ll need to leverage all the advantages inherent in their
intellectual property ownership.
Manufacturers have unique product knowledge in the form of design documents, engineering drawings,
repair procedures, operating conditions and specifications. Since they have the most in-depth knowledge
about their products, they are most capable of creating an experience that users truly value and trust.
Read Now: 4 Steps to Turn Parts Catalogs into an Irresistible Sales & Marketing Tool
ADD TO CART
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The Modern Manufacturer’s Guide to Winning the Aftermarket 6
#4 Engineering Effort
Do your engineers spend a meaningful part of their days looking up or coordinating information for other
departments, like technical publications or field service? Are they required to serve as subject matter
experts when anyone in sales or the help desk has a question about a part or assembly?
Equipment makers who build highly complex products often assign engineers to perform various
technical support functions. Sometimes they handle publishing tasks like converting CAD content into
a format suitable for importing into parts books. Some companies rely on engineers to manage and
produce all of their technical documentation.
Needless to say, engineers earn high salaries. Are these really the resources you want to spend on
creating support materials, or to be dragged away from higher value tasks in order to consult on
something as mundane as part identification?
When product information is comprehensive and accurate, and the exact same content is available to
all of the various stakeholders from the help desk to the dealership to the field service tech, it takes a
significant burden off the engineering department. Leave the engineers at their desks, where they can
focus on designing and building better products!
Read Now: Documoto Cloud Library Data Sheet
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The Modern Manufacturer’s Guide to Winning the Aftermarket 7
#5 Sales & Technical Support
Salespeople spend a great deal of time tending to administrative tasks and problem solving (64% on non-
sales tasks, and 25% on administrative duties, per Salesforce Research).
Even when they are selling, internal sales teams invest too many hours responding to phone and email
requests. Online sales with integrated eCommerce has replaced much of this activity in the B2C world,
and B2B sales are following closely behind.
When sales teams cut down on data entry and other menial tasks, they can spend more time developing
relationships, learning customer needs and fulfilling them. They have more time to analyze buyer
behavior and improve sales strategy and tactics. They can spend phone time building customer rapport
and upselling rather than paging through manuals attempting to solve part identification or technical
support mysteries.
The future of online support for leading manufacturers lies in maximizing self-service, but only to the
extent desired by the individual customer. Those who want to do their own research and make buying
decisions without a phone call can do so, while those who need human support or intervention can
receive the personalized service they seek.
In the past, it was difficult to satisfy both of these audiences without overspending, but technology
makes it possible to meet the demands of multiple audiences with needs that reach across a spectrum
from low- to high-touch.
Read Now: Fecon Case Study
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The Modern Manufacturer’s Guide to Winning the Aftermarket 8
#6 Customer Loyalty & Retention
Equipment owners can be passionate about their favorite brands, and it’s impossible to measure just
how much effect word-of-mouth reputation has on long-term sales and growth.
But, if you’re not providing best-in-class support, you better hope your machines rarely break down.
Equipment users tend to remember the bad experiences over the positive, so if there are any glitches
in the way your company’s aftermarket team (including dealers) handles spare parts and service, they
won’t forget.
Picture the following scenario. A service manager needs to buy cylinder rebuild kits for a number of
Acme excavators and skid steers as part of his company’s preventive maintenance program. He types
“Acme cylinder rebuild parts” into Google, and clicks on Acme’s website link at the top of the page. He
clicks the main menu link at Acme.com labeled “Spare Parts,” and then types “cylinder kit” into a search
box. Now he sees a list with product images and illustrations, and he can filter the results by model
numbers or even serial numbers. A few more clicks to add the appropriate products to the shopping cart
and the service manager is done in just a few minutes.
If you don’t make it this easy, how many years do you expect your customers to stick around waiting for
you to catch up?
Read Now: Hiperbaric Case Study
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The Modern Manufacturer’s Guide to Winning the Aftermarket 9
#7 Service Time
Mechanics and technicians spend up to 25% of their work days looking up information related to
diagnosing repairs, researching procedures, and identifying and ordering parts and supplies. Every delay
in these processes leads to greater machine downtime and lost productivity.
Service techs use a diverse set of tools and methodologies to aid productivity, from paper manuals to
project management software to hands-on training programs. As service management technology has
matured, these functions are being integrated together to provide a more seamless workflow.
We have already seen the most advanced companies, like Atlas Copco, deploying a single platform
for fleet and service management, with illustrated parts catalogs as a critical component in the parts
lookup and ordering stage.
In addition to the time savings that experienced mechanics will accrue from improved access to
technical information, perhaps even more important are the benefits to the next generation of service
personnel. They have less hands-on experience, products are more complex than they were in the
past, and overall mechanical skills are less developed in new workers, according to our manufacturing
sources. New service personnel entering the workforce have a greatly reduced learning curve when
properly supported by extensive product data.
What is the ideal after-sale software tool for mechanics and service technicians? An online platform that
can display parts and repair information on any device--and supports multiple media formats including
text, video, and VR/AR--is certain to play a big role.
Read Now: Atlas Copco Case Study
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The Modern Manufacturer’s Guide to Winning the Aftermarket 10
SummaryMany traditional industries still rely on outmoded tools, processes and distribution models that limit
their abilities to cut costs and grow revenue in the aftermarket. Manufacturers have outstanding
opportunities in this environment to apply technology not only to improve productivity in after-
sale business functions, but also to win market share by providing an incomparable customer
experience.
In some cases, companies already have the tools in place, and simple process improvements can
trigger unexpected benefits. If you have limited resources, seek out opportunities for “quick wins”
that don’t require complex process changes. For example, setting up an online shop with the 50
most frequently purchased products rather than attempting to create a full B2B eCommerce site
with thousands of items.
It may help to think about your aftermarket-related business units holistically, rather than managing
sales, service and customer support as distinct entities with completely different goals and
needs. Seek solutions that address more than one area simultaneously to leverage the returns on
your process improvement and technology investments. And after you analyze your aftermarket
processes and start implementing fixes, enjoy the newfound revenues and savings!
© DIGABIT INC. | 303.957.2822 | digabit.com
The Modern Manufacturer’s Guide to Winning the Aftermarket 11
References:
1. A $260 billion ‘ticking time bomb’: The costly business of retail returns
www.cnbc.com/2016/12/16/a-260-billion-ticking-time-bomb-the-costly-business-of-retail-returns.html
2. E-commerce Returns and Refunds: A Best Practice Guide
www.commercehub.com/e-commerce-returns-refunds-best-practice-guide/
3. E-commerce Product Return Rate – Statistics and Trends
www.invespcro.com/blog/ecommerce-product-return-rate-statistics/
4. The True Cost of Document Challenges Per Employee
www.slideshare.net/NitroInc/how-your-document-habits-are-destroying-productivity-48301378/6
5. The 3 Deadly Sins of Online OEM Part Sales
digabit.com/deadly-sins-online-part-sales/
6. When Your Contract Manufacturer Becomes Your Competitor
hbr.org/2006/09/when-your-contract-manufacturer-becomes-your-competitor
7. Salesforce State of Sales
www.salesforce.com/form/pdf/2016-state-of-sales.jsp
8. Atlas Copco, QR-Connect: Track Scan Order, Everyone Can do it!
www.youtube.com/watch?v=bP115C2NAv0&feature=youtu.be
9. Seven B2B e-commerce features that win over buyers
www.digitalcommerce360.com/2017/10/16/seven-b2b-e-commerce-features-win-buyers/
All recommended reading material can be found at www.digabit.com/resources
