Rising interest rates, supply chain issues, limited labor pools, inflation, and the possibility of a recession have caused Original Equipment Manufacturers (OEMs) to struggle with their aftermarket service delivery needs.
From the expense of finding and hiring in-house employees to tight budgets, many OEMs are working with limited resources. OEMs need to understand where they may be able to save time, money, and how to think strategically about their budgets.
One way that OEMs can save during a possible recession is by outsourcing or augmenting various aspects of their aftermarket service needs.
Today, many OEMs delegate aftermarket service tasks to internal teams with dedicated infrastructure and resources to meet customer expectations while ensuring quality and compliance. Recently, there has been a rise in the rate of outsourcing some or all of these aftermarket services to 3rd Party Service organizations and White Glove Service Partners. Why? Outsourcing aftermarket service processes can help OEMs realize significant cost savings and improve efficiency and productivity during tight labor markets or potential recessions without impacting Customer Experience.
Let’s discuss some additional benefits which can be realized when outsourcing your aftermarket service processes to Quest.
Outsourcing aftermarket services can help OEMs reduce their overall costs and improve scalability. It enables OEMs to pay for actual services needed versus having to keep idle staff available to meet fluctuations in demand.
For example, if an OEM has systems installed in two major metropolitan cities which require a field service resource only 50% of the time, they are often faced with the issue of flying resources to cover vacant territories. This results in high expenses and the loss of at least 2 days of productive time due to travel.
Another issue OEMs face arises when placing dedicated resources in specific geographies that do not require a full-time field service resource. OEMs can expect to have a higher-than-normal carrying cost the lack of work in certain geographical areas to keep resources productive.
Outsourcing or augmenting can help improve an OEM’s efficiency and productivity by crafting a program that allows the use of a fractional field service resource based on the anticipated usage. This method allows OEMs to obtain a trained resource based on the estimated usage required, with a smaller overhead cost.
An aftermarket partnership can also free up internal resources, allowing OEMs to focus on other essential areas of the business.
Lastly, outsourcing can help OEMs build and maintain a competitive edge. By partnering with a leading service provider, OEMs gain access to the latest technologies and best practices while quickly scaling service operations.
As a White Glove Service Partner, Quest’s processes allow us to understand the ins and outs of your products, so we can service them as your own employees would. Quest trains and grows its service teams autonomously, without impacting OEM’s training personnel and their busy schedules.
If you are looking to reallocate your budget for aftermarket service processes, working with White Glove Service Partner Quest International is a great option. Reach out to us to start a discussion of how we can augment your service staff and provide best-in-class service solutions.
Read on to learn more about our processes and how Quest provides white glove service to customers.