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OEM centralise spare parts business

The client

A global OEM at the forefront of technological innovation. Their capabilities in data and analytics, cloud, mobile, social and security have helped the UK evolve to become one of the world’s most digitally advanced nations.

The Challenge

The end-user was looking for a solution for their spare parts business which would save time, money and would centralise their processes in line with their corporate strategy.

“Over the years in spare parts logistics, the focus has always been based upon supporting our own products, equipment and machines.  But within recent years that has changed. When we visit our end-user’s locations, it’s clear to see our customers are looking for a ‘one-stop-shop’ to support not just our global brand machines, but also other vendors.”

“Our end-users are a mixture of mid-market and enterprise companies who are looking for vendors to manage their business. Supporting other vendors’ machines is an interesting dynamic, everybody is trying to avoid putting huge inventories on the shelves which may never be needed for the end-users. We wanted a partner who could help us mitigate the cost and risk.

We are a global OEM and provide after sales support which is why we are involved in spare parts. Some of our countries like to have parts on the shelf and available within two hours, but they do not realise that this is too costly. It is far more cost effective to have one centralised solution which is a better model for us, so we wanted a partner who offered an Inventory-as a-service solution.”

– A global OEM

After due diligence the global OEM felt that Procurri’s knowledge of the spare parts business and the quality of their work was very good, making them the ideal partner for their business.

“Their logistic networking, product support and pricing is very competitive. For me it’s not just about price, it’s also about exploring new routes, full ownership and new models. Procurri are very open to innovative ways of working”.

The Solution

Fast forward sixteen years and the global OEM and Procurri are still working together.

“The culture within Procurri is very friendly and approachable and the team will work with you to find a solution in the end user’s best interest.

Procurri are always open to exploring new routes for us, an example of this is our quotations model. In the past, we used to create quotations on a case-by-case basis, but we recently changed that into a methodology where we worked on a ‘quick quote tool’. Procurri now prepare all of our quotes in advance and our internal team simply looks up the country, machine type and price, so that decreases the lead time for quotations and we are delighted!”

The Results

Significant Cost Savings – on logistics and infrastructure costs
Better up-front communications – saving time
Return on investment – achieved due to saving time and money

 

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