Key activities

We delivered a comprehensive and tailored solution to the client, involving several activities and deliverables, such as:

• Design and implementation of price update template and process, to facilitate and automate the price and margin calculation and update for spare parts and accessories.
• Calculation and proposal of price and margin adjustments for spare parts and accessories, to align the prices and margins with the market and customer expectations and to improve the revenue and profitability of the client and the network.
• Assessment and proposal of inventory requirements and gaps based on A-B-C grouping and historical data, to define and implement the optimal inventory levels and replenishment frequencies for spare parts.
• Calculation and proposal of obsolete stock budget and scrapping strategy, to manage and reduce the obsolete stock through scrapping or discounting strategies and to free up the inventory space and capital.
• Assessment and proposal of service process amendments and best practices, to enhance the service differentiation and value proposition of the client and the network.
• Design and implementation of service package price calculation template, to facilitate and automate the service package price calculation and update.
• Assessment and proposal of network capacity and efficiency improvement, to evaluate and improve the dealer network's capacity and efficiency.
• Development and implementation of dealer checklist, audit, and business case template, to provide regular guidance and support to the dealers through checklists, audits, and business cases.
• Development and implementation of network reporting and database, to collect and store the network data and to generate and share the network reports.
• Definition and implementation of warehouse storage system layout and binning location, to redesign and implement the warehouse storage system layout and binning location.
• Introduction and implementation of warehousing and transportation best practices and standards, to introduce and implement the best practices and standards for warehousing and transportation operations.
• Design and implementation of RFQ and requirements for warehousing and transportation operation, to conduct and manage the tender process for selecting and contracting the best logistics service providers.
• Development and implementation of market strategy and budgeting for revenue, provisions, marketing, and network support, to develop and implement the market strategy and budgeting for revenue, provisions, marketing, and network support.
• Development and implementation of integrated dashboard and reporting requirements, to develop and implement the integrated dashboard and reporting requirements for the client and the network.
• Assessment and implementation of IMS and DMS solutions, to assess and implement the IMS and DMS solutions for the client and the network.
• Coaching and training of IM team and dealer network across all processes and requirements, to coach and train the IM team and dealer network across all processes and requirements.

Key Findings

We conducted a thorough analysis of the client's current situation and identified several challenges and inefficiencies in its after sales, sales, and marketing operations, such as:

• Inconsistent pricing and margin structure for spare parts and accessories, resulting in lost revenue and customer satisfaction.
• High inventory level and obsolescence of spare parts, leading to high capital and operational costs and low inventory turnover.
• Low customer loyalty and service revenue penetration, due to lack of service differentiation and value proposition.
• Lack of network guidance and support for dealers, causing uneven performance and quality standards across the network.
• Inadequate warehousing and transportation standards and processes, affecting the efficiency and quality of the logistics operations.
• Insufficient reporting and data management capabilities, hindering the visibility and decision making of the client and the network.

Key Potentials

We identified several opportunities and benefits for the client to improve its operations and profitability, such as:

• Revenue and margin improvement through pricing strategy and service loyalty, by aligning the prices and margins of spare parts and accessories with the market and customer expectations, and by offering attractive and competitive service packages to enhance customer retention and satisfaction. We estimated that this could increase the annual revenue by up to 15% and the annual margin by up to 5%.
• Inventory reduction and optimization through inventory management and replenishment strategy, by defining and implementing the optimal inventory levels and replenishment frequencies based on the demand and supply of spare parts, and by managing and reducing the obsolete stock through scrapping or discounting strategies. We estimated that this could reduce the inventory level by up to 30% and the inventory cost by up to 20%.
• Network development and support through network assessment, coaching, and contingency planning, by evaluating and improving the capacity and efficiency of the dealer network, by providing regular guidance and support to the dealers through checklists, audits, and business cases, and by developing and implementing contingency plans for network expansion or consolidation. We estimated that this could improve the network performance by up to 25% and the network quality by up to 10%.
• Warehousing and transportation efficiency and quality through warehouse design, process improvement, and tender management, by redesigning and implementing the warehouse storage system layout and binning location, by introducing and implementing the best practices and standards for warehousing and transportation operations, and by conducting and managing the tender process for selecting and contracting the best logistics service providers. We estimated that this could improve the warehousing and transportation efficiency by up to 15% and the warehousing and transportation quality by up to 5%.
• Strategy, budgeting, and reporting alignment and transparency through business planning, forecasting, and dashboard development, by developing and implementing the market strategy and budgeting for revenue, provisions, marketing, and network support, by forecasting and monitoring the key performance indicators and financial results, and by developing and implementing the integrated dashboard and reporting requirements for the client and the network. We estimated that this could improve the strategy, budgeting, and reporting alignment and transparency by up to 20%.