WebProWorld Marketing Forum |
Men
Are From Google, Women Are From Yahoo
On the Internet, as in life, men and women have different motivations for doing
what they do. According to a recent report from Pew Internet and American Life,
women view the Internet as a place to extend, support, and nurture relationships
and communities...
Marketing
in forums
Seeing as this all about Marketing etc and we are in a Forum does anybody have
any tricks they are using to get the most out off their Forum to market to the
members? My forum is linked to my business...
Starting
a web development business
I've had a few people ask me to do their websites and I'm thinking about starting
a part-time web business setting up e-commerce sites for local businesses. I'll
most likely use osCommerce as a platform. I'd appreciate hearing from others who
are doing this. I'm trying to get an idea for what to charge for these websites.
I'll start out...
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Move
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12.30.05
Unleashing The Power Of The Service Supply Chain
 By
Dr. Morris Cohen
Manufacturers are starting to embrace the aftermarket for increased revenue, stronger
customer relationships and more dynamic lifecycles.
Recognizing multi-million dollar savings and increased customer satisfaction,
industry giants and small companies are transforming their businesses into service-centric
organizations - a major (and long overdue) industry shift.
Aftermarket spare parts and services account for 8 percent of the annual gross
domestic product in the United States, with U.S. consumers and businesses spending
more than $700 billion annually on spare parts and services for previously purchased
assets such as automobiles, aircraft, and industrial machinery, according to Aberdeen
Group.
While a critical component of the economy, the service sector remains underinvested.
A recent study by AMR found that while after-sales service on average represents
24 percent of revenue and an astonishing 45 percent of profit for manufacturing
companies, only 20 percent of IT spend is allocated to service.
While corporate executives are recognizing the aftermarket as a competitive edge
for immediate profit, customer satisfaction, and new product revenue, they first
need to understand three important trends before they can capitalize on this service
opportunity:
1. Growing demand for performance-based service
metrics
2. Linking product innovation and service
3.
Continued value in outsourcing
All of these are based on a fundamental service concept: the objective of the
product manufacturer is not in selling the product but rather in maximizing the
value that the customer receives from the product throughout its lifetime. Smart
executives need to leverage these three trends:
1. Performance-Based
Service Metrics
Companies, noticeably in the defense industry, have begun to shift to a Performance-Based
Logistics (PBL) approach, where payment is tied directly to product availability
or usage. For example, GE Aircraft Engines now has "power by the hour" contracts.
In the military world, with Boeing Integrated Defense Systems' "FIRST" PBL contract
with the U.S. Navy for support of the F-18 Super Hornet fighter plane, Boeing
is paid based on overall aircraft system availability, not a per-repair basis.
In the war in Iraq, the Super Hornet achieved a 97.5 percent sortie completion
rate and 92 percent operational availability versus the average 80 percent operational
availability for conventionally supported aircraft.
With the right systems and processes in place, commercial companies can also shift
to PBL-type contracts, increasing customer satisfaction for the end user, and
profit for the manufacturer. An additional benefit for everyone involved is the
incentive to increase product reliability, by creating a feedback loop between
product development and service.
2) Connecting the Dots Between
Product Development and Service
There are three primary processes involved in delivering product to the customer:
product development, manufacturing, and aftermarket service. Arguably, customer
value is created in developing the differentiated product and providing excellent
support after the sale.
In addition to focusing on improved product development and service, forward-looking
executives are increasingly tightening the link between these areas. Some examples
include:
· Design for serviceability - Involve service engineers
in the development of the product to ensure that products are built for reliability
and efficient diagnosis and repair.
· Link engineering changes to service planning - Ensure that as engineering
changes occur, the impact on inventory levels and reserves are factored into decisions
about updating and upgrading products.
· Feedback between the field
and product development - Collect failure data to understand the customer
experience and changes needed to improve product reliability.
Cisco Systems, the leading manufacturer of telecom equipment has been a leader
in this area, reviewing failure data from the service business to continually
improve existing products and innovate new products that improve the customer
experience.
3) Increased Value in Outsourcing
Outsourcing can be a productivity enhancer when intelligent decisions are made
about which service processes are a core competency and which are better managed
by a third party with the expertise to manage the process more effectively and
at a lower cost.
Tellabs, a leading provider of bandwidth management solutions to telecom service
providers such as MCI, SBC and Verizon, enhanced their service offering by offering
same-day service contracts to its customers requiring a network of strategic parts
centers, and the infrastructure to provide parts to customers in very short timeframes.
Recognizing their core competence was in product design and customer interaction
and not in service logistics, Tellabs outsourced this as the company focused on
expanding their offering. In two months, Tellabs put the new service offering
in place, surpassing results from their original system that used only internal
resources.
Start Mining
With the right investments in service, executives will increase profit, streamline
efficiency, and improve customer satisfaction. Understanding and embracing these
three trends will help executives benefit from the untapped potential of the service
supply chain and take a major step toward market leadership.
About the Author:
Dr. Morris Cohen is the co-founder and chairman of MCA Solutions and Matsushita
professor of manufacturing and logistics at the Wharton School of the University
of Pennsylvania. With 25 years of experience in the supply chain space, he has
planned and designed many advanced value chain systems. Dr. Cohen has published
extensively on the theory and practice of optimized service value chain design,
planning and management, including his book, Manufacturing Automation. He can
be reached at Morris.Cohen@mcasolutions.com. |
