The OEM supply chain can be a complicated beast. Often times, it’s difficult to support each and every operation process, from manufacturing to inventory management to distribution, under one roof. Because vertical integration may be a challenge, or may simply not be the desired focus of the business, many firms outsource specific parts of the OEM supply chain to third party service providers.
Outsourcing May Present OEM Supply Chain Risks
Unfortunately, when OEMs outsource, they make their supply chain more liable to disruptions by increasing risk factors. Risk in relation to outsourcing includes environmental factors, such as a supplier’s economic stability, its business track record, as well as its capability to excel at its own core competencies. When supply chains are disturbed, the entire process stalls, which not only affects how quickly end users get back up and running, but also impacts an OEM’s profitability.
Here are three ways AER adds value to OEMs by making sure their supply chains are protected from outsourcing risks.
How AER Protects an OEM’s Supply Chain from Outsourcing Risks
- Strong Book of Business - A strong book of business is an apt indicator of a service center’s credibility. Satisfying the distinct, complex, and constantly shifting needs of many of the largest OEMs in the world illustrates a service provider’s ability to consistently deliver premium quality value-adding functions, heroic customer service, scalability, and flexibility.
- Proven Track Record - A decorated track record is important for service providers to supply to OEMs, because it demonstrates the remanufacturing center’s ability to regularly and effectively satisfy its partners’ needs. Case studies and testimonials are great tools to illustrate proven reliability over a long period of time.
- Financial Stability - When OEMs choose a third party service provider, they are making an investment, both logistically and economically, into a partner. When these partners are financially volatile, they put an OEM’s reputation in jeopardy by potentially limiting the OEM’s ability to get end-users up and running as quickly as possible. AER is proud of the robust business it does for others, which is why it takes the initiative to provide OEMs with the financial information they need to have peace of mind that the partner they choose is able to provide premium quality service for as long as the OEM needs it.
- Expert Technicians - At the end of the day, OEM service providers should excel at their core competencies, which is why it is crucial for an OEM service provider to have a team of expert technicians on-hand that can not only accurately diagnose issues, but also meticulously resolve them. Are they IPC trained and certified? If so, for how long? Usually, a tenure of 10+ years illustrates a mastery over the craft.
AER’s Promise to Protect an OEM’s Supply Chain and Its Brand
When OEMs outsource to third party service providers, they increase the risk to their supply chains by relinquishing control over a key operating process. AER’s strong book of business, proven track record, robust financial standing, and team of expert technicians, however, helps OEMs minimize this risk to their supply chains, and bolsters their brand as a result. When OEMs choose to partner with AER, they do so because they know the value-adding functions we provide better serve their end-users.
