INFOGRAPHIC - How to become a service champion in manufacturing

December 7, 2015 Ken Klaver

How important is service for manufacutring comanies? This infographic shows how industrial orgnizations can benefit from improving service levels and what sets service champions apart.  

Some of the most successful industrial goods manufacturers are becoming world-class service providers—a strategy that can significantly increase revenue and, to an even larger extent, profit. Surprisingly, it’s not the particular markets served or the structure of an organization that distinguish the best service providers; it’s the right service mindset and management approach.

Service champions free themselves from traditional thinking and focus on a few critical capabilities, including talent management, service sales effectiveness and—despite the many improvements in recent years—supply chain excellence for parts, as this infographic from bain.com explains.

According to the infographic, service champions set themelves apart by focusing on the following 6 points:

1. A clear, well-structured service offering

Service champions redefine the customer as a strategic partner, and they articulate well-defined hierarchical service offerings with clear value propositions that increase their customers’ business performance. In return, service champions achieve strong service sales growth and deliver above-average margins in all service businesses, including labor-intensive ones such as maintenance and repair.

2.Proactive sales approach

ervice champions use a dedicated salesforce including technical experts and generate orders through multiple channels, including online sales, and information gathered through remote monitoring of equipment.

3. Active focus on delivery performance

A strong focus on capabilities, effectiveness and efficiency delivers higher service profitability. Champions have the right technical and commercial capabilities. They make it a priority to intervene quickly—and get service right the first time.

4. Fast response through parts supply chain efficiency

Service champions invest in dedicated and collaborative service supply chains and management. Supplying spare parts to customers is still the largest service business across clusters, averaging 49% of the total service business.

5. Managing talent and people for service excellence

Service is a people business. While industrial suppliers historically excel in engineering and manufacturing, their service business poses a wholly new challenge in terms of people and talent management.

6. Transparency in performance management

While most companies monitor the financial performance of the service business, service champions track and steer local units closely and offer comprehensive support to foster top performance. They use a more comprehensive set of key performance indicators that are specific for service performance and work with data to manage the business profitably 

For more information regarding this topic, read The hallmarks of a service champion

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