Service and Parts Management

You are in: Industries We Serve

• Automotive
  • Our Automotive Solutions
    • End-to-End Lead Management
    • Optimization of Dealer-Focused Operations
    • Web Strategy
    • Electrics/Electronics Product Lifecycle Management Integration
    • Global Emerging-Market Sourcing
    • Master Data Management
    • Order-to-Delivery Transformation
    • Service and Parts Management
    • Service-Oriented Architecture
    • Supplier Relationship Management
    • Supplier Transformation
    • Transformational Outsourcing

Profiting from service and parts management

Service and spare parts operations are critical to business success. They offer a profit margin up to 10 times greater than that of the initial sale. On average, post-sale service accounts for 20% to 30% of revenue and as much as 40% of profits. In addition, service can be key to securing customer loyalty, fostering a manufacturer’s brand name and maintaining competitive differentiation.

Automotive companies can realize significant business benefits from an improved Service and Parts Management (SPM) strategy. In one case, Capgemini worked with a large vehicle manufacturer to implement a service supply chain review program designed to improve customer satisfaction and optimize parts inventory levels. The results were significant:

• Fill rates increased from 93% to 97%.
• Backorder lines were reduced by 85%.
• Inventory decreased by 26%.

Capgemini’s Approach to SPM

Capgemini brings proven industry-specific Service and Parts Management solutions and hundreds of professionals with service parts experience in North America and Europe. We have delivered SPM projects across a variety of industries, including automotive, aerospace/aviation, high tech and consumer products.

Achieving the benefits of an improved SPM strategy requires a holistic approach, a compelling business case and a realistic implementation plan. The approach should include five key steps:

1. Strategy Development and Alignment: Cost minimization, revenue enhancement and asset management strategy development; followed by alignment of the developed strategy.

2. As-Is Assessment: Current processes and roles and responsibilities; current structure; insights into innovative practices at customers and leading industries; and root causes and hypotheses for improvements.

3. To-Be Design: Governance and operational model (KPIs, management and control, processes, roles and responsibilities), as well as IT validation.

4. Business Case: Identification and quantification of benefits, optimization and prioritization of potential benefits, validated benefit and costing logic, sensitivity and scenario analysis, and a framework for benefit tracking.

5. Implementation Roadmap: Tiered roadmap with options for the transformation; deliverables, activities, time schedule and milestones for the detailed design; and project organization.

Contact Us

If you have specific business needs or objectives that you would like to discuss, or if you’d like an automotive specialist to get in touch with you, contact us.