Management consultants set up unit to advise on after-sales service

Eschborn. Management consultantancy Accenture has opened a 30-person innovation center in Eschborn, Germany, to advise clients about after-sales service and spare parts issues such as warranties, telematics, customer relations and sales.

"The automobile industry gives away millions of euros in the after-sales market," said Accenture's Friedrich Preiss. "Together with our customers we will optimize the whole of the value-added chain--from the selling to the scrapping of a vehicle."

The consultants provide five reasons why carmakers should pay more attention to the after-sales market:

  • The service and spare parts businesses drive shareholder value. Although they only make up 10 percent to 25 percent of revenue they represent 40 percent to 75 percent of profit.

  • The automotive after-sales market is growing by 3 percent to 4 percent a year because customers keep their cars longer and drive them more.

  • More people are buying light commercial vehicles and off-roaders, which offer higher margins for spare parts than traditional passenger cars.

  • Customer satisfaction will increase if customers have positive experiences regarding service.

  • A poor service system increases the costs for logistics by an average of 4 percent.

    "There are hardly any German automobile manufacturers or suppliers who consistently predict and manage fluctuations in the demand for spare parts," Preiss said.

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