IFS study shows you can turn it into a profit centre.
If you are a manufacturer of plant machinery and equipment, there’s money to be made on the service side beyond break-fix repair, according to an IFS study.
The global enterprise software vendor (Canadian office in Waterloo, Ont.) polled more than 200 North American small, medium and large companies from a range of sectors, and found a direct link between service maturity and profit.
Most manufacturers (62%) involved in planned maintenance or service contracts reported profitable operations. But almost 40% of those involved in break-fix repair reported problems due to inefficient back-office processes for warranty management.
The report also shows how the service market breaks down:
• 38% serviced only products, with no aftermarket or other service revenues.
• 19% serviced products and some aftermarket service parts.
• 15% serviced products and aftermarket field service through break-fix repair.
• 16% sold planned maintenance contracts with service level agreements (SLAs).
To access the white paper, click on www.ifsworld.com and search Industrial Servitization and Field Service Technology.
This article originally appeared in the September 2018 print issue of PLANT Magazine.