The automotive industry has recently seen a trend of service center consolidations. Contributing factors include re-evaluation of efficiencies, advancements in technology, and the downsizing of the industry at large. Consolidations can be gruesome, but with the right re-arrangements, a consolidation can reinvigorate a business operation. Throughout the auto industry, consolidations of service centers have been inevitable, whether to save cost, take advantage of improved shipping methods, or simply the need to increase efficiencies. Auto OEMs can ensure the right choice of auto OEM service center by following these three simple tips.
When faced with the need to downsize service center operations, consider the key competencies each of your existing service centers has. Perhaps a service center stands out based on extra services they offer, such as overnight shipping or fast product turn times that keep your customers happy. Maybe a service center’s customer service team stands out due to their technical knowledge, or perhaps they simply offer bend-over-backwards service and place a priority on your dealers’ and customers’ satisfaction. This auto OEM service center is focused on customer service, so even when there is a backorder, they handle each situation with professionalism and transparency. Regardless of what makes them shine, a service center is a direct reflection of your OEM brand, so choosing a service center that stands out will in turn help you to stand out.
During a consolidation, service centers that you’ve had long, good standing relationships with may be worth keeping around. However, that’s not to say you shouldn’t put them to the test in efficiencies. Perhaps one of your trusted service centers needs some slight adjustments. Re-evaluating their efficiencies, and asking them to implement necessary changes may be worth your while. If they are reliable enough to remain partnered with you from the beginning, they should be accountable enough to make any necessary changes in their own operation to last through to the end. Revisiting their book of business may refresh your memory on their capabilities. You may prefer to stay with a service center dedicated to only your product, or you may prefer a service center who is partnered with other OEM industry leaders, as they have placed their trust in that service center as well.
Perhaps the most important factor to take into consideration under consolidation includes a service center’s willingness and ability to evolve to meet your needs as an OEM. As business naturally fluctuates, finding a service center that can adjust to meet your business needs may be invaluable to an OEM’s service operation. Whether service center technicians need to obtain special certification, or the facility needs to undergo a complete overhaul in order to stay relevant to the industry, the service center should mold to an OEM’s changing needs.
See how AER remained a service center for Ford through service center consolidations. Read our case study.