To any OEM’s business model, aftermarket services are the key. The speed of delivery strangely impacts this market. By now, the value of the aftermarket accomplishment for manufacturers should be clear. This blog has been created to discuss how expedited shipping and delivery affect the aftermarket success through tensed inventory management, shipping, and delivery process.
A logical transition is going on in the aftermarket industry about expedited services. While such services were once believed to be the finest, technological progressions and a significant invasion of resources have started to beseech the question: should anything in the aftermarket not be “expedited” depending on the very nature of this industry and its clients?
To answer this question, we can turn to behavioral research on aftermarket customers themselves.
Every aftermarket client has different anticipations and needs contrary to their traditional market equals. Such differences lead to dissimilar pricing models. While traditional markets usually go through price elasticity, this isn’t always the scenario with the aftermarket.
As per the experts, one critical market foundation for this conduct is that aftermarket clients are less price-sensitive, particularly in time-sensitive situations when business operations or production facilities are stuck due to a single out-of-order component.
Need drives the behavior of the customer in this industry. As a result, manufacturers compete against those who can fulfill that need most efficiently. Keep in mind that the majority of clients will shell out more for a premium service experience. All this insight supports what many manufacturers have already incorporated – that expedited shipping should be built into the aftermarket model of a company itself.
Tap into all your resources for worldwide delivery systems
To outshine the industry competitors, most industries are shifting to the normalization of expedited aftermarket services as a requirement. Luckily, enough resources are now available to almost any manufacturer to build highly efficient shipping and delivery systems. This means OEMs must get imaginative with the use of every delivery resource and system to survive effortlessly.
Local Delivery Resources
What has become known as the “Last Mile” is one of the costliest peers of delivery? Delivery costs amassed during the Last Mile can make up 28% of the entire shipping cost. Once the component has reached its endpoint locality, cultivating local delivery systems can avert last-minute postponements.
Resources for such systems can consist of smaller local airports with slight possibilities of postponements. These can be accompanied by partnering with or employing local couriers that:
- understand regional shipping challenges,
- speak the language, and
- are familiar with the geography.
There is no scarcity of local resources almost anywhere you are delivering. By making the most out of local and worldwide delivery shipping resources, manufacturers can help splash the number of aftermarket inventory disturbances. This will result in augmented value for every party involved.
Worldwide Delivery Resources
You may be missing out on serious savings of both time and money if you have not explored beyond air shipping for systems of globalized aftermarket delivery. There are a lot of scenarios in which air shipping just is not the fastest or most cost-effective mode. For instance, in a case where air delivery will require four transfers and three clearances through a famous, busy customs department versus ground shipping, that will go through a fewer, less burdened customs process.
In the same way, ocean delivery can even represent a potentially faster and more affordable shipping mode, contrary to air. Speedy global delivery necessitates a comprehensive acquaintance with freight dynamics, seasonal shipping trends, and even holidays of the receiving nation.
Increase expedited services by applying technological resources for aftermarket
Unifying technological resources act as a huge challenge to manufacturers. And some common problems like fragmented automation can create serious aftermarket drag and confusion. The following are some instances of powerful unifying tools to help OEMs in the aftermarket shipping industry:
Industry-specific environmental monitoring services
Specific industries work on almost select expedited services. Mostly, such goods necessitate a highly-controlled environment. The pharmaceutical industry is the best example. It necessitates expedited, temperature-controlled deliveries to abide by local and federal regulations. Technological services which monitor humidity, temperature, and more of goods during shipment are extensively available – and in some scenarios – required.
Mobile communication services
Communication between manufacturers, dispatchers, and carriers is necessary for monitoring and delivering consistently well-organized and first-class expedited services. The key is to source carriers that utilize a 2-way communication system. It does not just allow a company to continuously view the status of a consignment but even contacts delivery staff during any observed postponements. Digital communication services are particularly useful to recoup some of those major expenses in the “Last Mile” leg.
Transport management systems
Such systems are priceless tools that allow companies to administer their supply chains and develop replicable processes for transport and delivery. They decline the freight expenses of a company by 5%. They even shoot enhanced communication between carriers and manufacturers, on top of carrying out evaluations of reports designed to tighten processes associated with the transportation of expedited components.
To explore more solutions for strategic aftermarket growth, C5 Expedite can offer industry knowledge, evaluation, and technologies to help you capture as much of this market as possible. Discover how we can help you tighten inventory management and expedite shipping processes by contacting us now!