Syncron announced significant enhancements to the Syncron Service Cloud including Syncron Inventory 20.1 and Price 20.2, the company’s newest releases. These solutions help Original Equipment Manufacturers (OEMs) improve financial performance and liquidity, minimize service parts supply chain disruption and retain existing customers.
According to a recent study by Deloitte, the operating margin of aftersales businesses is 2.5 times that of new equipment sales. Recent declines in orders for new equipment have driven manufacturers to their aftersales service businesses for relief and opportunities to optimize the performance of this consistently profitable business.
“With sharp declines in demand for new products, OEMs and their suppliers have been hit hard by COVID-19,” said Henrik Lenerius, Chief Product Officer, Syncron. “To help protect profits and drive additional revenue, OEMs are doubling down on their aftersales businesses. The Syncron Service Cloud delivers the enhanced capabilities they need to optimize the performance of their aftersales businesses and will help them find additional revenue and profit opportunities, which is of strategic importance during this challenging time.”
New capabilities announced in the latest Syncron Service Cloud release include:
● Connected Inventory: Incorporating IoT data from connected products in Syncron Inventory™ enables the solution to leverage the understanding of where, how and which products are being used in the field to predict future consumption of parts, components and consumables. For the first time, OEMs can move from reactive to proactive parts forecasting and replenishment planning. This results in improved parts availability, and consequently, increased parts sales and better customer experiences.
● Planned Event Management (PEM): Consumption of service parts can, at a high level, be split into two categories: Unpredictable demand from product or part failures, and predictable demand from planned maintenance or repair events. PEM combines the planning for these two distinct demand streams. It ensures OEMs that the first line of support, like the field technician or dealership, can secure the availability of the required parts for an event without having to keep unnecessary safety stock. At the same time, it provides upstream locations with an early and more accurate demand signal. The result is smoother and more predictable planning, and ultimately less product downtime at a lower total cost to the entire parts network.
● Simulation Center: When considering changes to complex global parts supply networks, it is traditionally challenging to predict the financial and logistical impacts before taking the final decisions. The Simulation Center provides OEMs with unprecedented and invaluable decision support. OEMs can now take the proposed changes, “travel back in time” and re-run history to see what the outcomes would have been based on the real historical data. You can run several different scenarios and compare the outcomes before approving and putting changes into production.
● Syncron Insights: With the risk of volatile demand in current markets, having flexible and dynamic visibility into parts pricing has become increasingly important. Syncron Insights is a powerful new Business Intelligence solution fully integrated with Syncron Price. The reporting illuminates key hidden pricing data points on interactive customizable dashboards allowing customers to better manage key pricing activities, including price harmonization, customer pricing, segmentation, price revision simulation, root cause analysis and overall profitability. This will enable pricing teams to quickly react to the changing market and make proactive simulations and analysis.
“During recessionary periods in which manufacturers experience significant decline in demand for new products -- and thus an aging installed base -- aftersales service operations become strategically important to serve customers and to drive the economic recovery of OEMs,” said Gene Metheny, Managing Director, Carlisle & Co. “As experts in the aftersales service industry ourselves, we feel that Syncron’s latest releases focus on giving OEMs the insights, simulation and planning capabilities to better understand, predict and optimize their aftersales service operations. There is no doubt that OEMs who maximize their aftersales service performance in the short-term will emerge from the recession sooner, stronger and more resilient.”