Study #3 Ð Computer Storage OEM
OEM Profile: Computer Storage OEM with a large installed field population of highly regarded storage devices. Product models vary by capacity and the method of attaching to the computer network. The most likely item to fail in any device is a small, low value, easily installed component. The product itself is primarily used by businesses to backup data; clients are very concerned about the device being un-useable and want fast turnaround on the parts needed to repair and put the unit back in service.
Issues and Challenges
Key Success Measurements / Desired Outcomes
- Sales and technical resources were being diverted from high value A-stock products to address requests for low-value spares items.
- Cost per spares transaction was high, as the process to identify and supply the right part was done by highly paid reps and engineers and the task to identify the correct part was time-consuming.
- A-stock, full product sales were being lost or delayed, with sales reps being diverted.
- Customer satisfaction was being lowered as customers requiring spares advice had to wait for an available engineer and new installations were delayed with engineers answering spares questions.
Solution Implemented with Segue
- Provide a spares supply system that enables a client to identify the necessary spare part, order and receive it quickly.
- Reduce or eliminate the time spent by sales reps and engineers on spares sales.
- Protect the OEMï¿½s image in the marketplace in terms of customer service, technical quality of the product, and value for money ï¿½ so the customer stays brand loyal on future purchases of units.
Segue was appointed the authorized Spare Parts Distributor for the OEM in North America. An inventory of spare parts was consigned to Segue, who has specialists on staff who manage the entire spares order process from taking the client call and identifying the correct part, to collecting payment, shipping the product and administrating OEM warranty for the spare parts. Segue then created and continues to maintain a website for the OEM's spare parts, with online ordering capability.
Value Delivered by Segue
- Over $250,000 in spares revenue annually.
- Increased total sales by increasing the value per spares sales. Segue provided data and analysis of sales trends and then created multi-spares packs.
- OEM personnel required for spares order processing reduced to a part-time function of a single contact person with whom Segue interfaces.
- Released sales reps and engineers to focus on A-stock and new product sales.
- High Customer satisfaction.