Syncron and Field Service Associates commissioned Vanson Bourne to analyze the aftermarket service industry’s new challenges, highlighting the strategic initiatives and technological advancements required for optimization and customer satisfaction.
“There are paradigm shifts in economic models occurring. Customer preferences, technological innovation and growth opportunities are catalyzing moves toward new business models that are predicated on delivering a superior customer experience and are outcome rather than cost-based. At the same time, sustainability challenges and growing regulations are driving businesses away from wasteful make-use-dispose cycles and towards circular economic operating models,” according to Syncron.
What’s more, businesses are becoming more data- and technology-driven, and there is an increased focus on operational efficiency and supply chain management, especially as global disruption and volatility become more commonplace.
Key takeaways:
- Revenue from outcome-based service models is expected to grow from 25% to 41% over the next five years.
- Over one-third (34%) of organizations expect operational improvements to increase profits by over 15%.
- Nearly half (48%) believe supply chain optimization offers the greatest boost to revenue and margins. Additional opportunities include improving parts pricing (59%), addressing supply chain costs (58%), and optimizing inventory (53%).
- 39% of respondents prioritize advanced technologies like artificial intelligence (AI) and automation when choosing solutions.
- 48% see improved data visibility as a key benefit of modernizing aftermarket functions.
- 90% cite data challenges, particularly its quality (49%) and quantity (43%), as barriers to accurately monitoring KPIs.
- 95% of organizations plan to transition to a circular economy model within the next 12-24 months.
- 76% believe improvements are needed in tracking circulatory performance metrics.
- 75% need to better measure the carbon footprint of their supply chain.
