When a large industrial equipment manufacturer wanted to understand the post-sale and service implications of embedding new IoT sensors into its product line, we helped them develop an entirely new strategy for driving both customer satisfaction and additional revenues into its service business.
By bringing together Diagnostic Trouble Codes (DTCs), Service Records, Part Histories, Inventory Records, and associated financial charges, we were able to provide an end-to-end view of their service business including how DTCs were related to later failures that resulted in costly warranty repairs that could have potentially be avoided through preemptive parts replacement.
We worked with them to come up with a plan for preemptive maintenance on certain warranties items based on probability to fail within the period, cost of the repair, the true financial impact, and the costs related to inventory.
During the process they better understood what needed to be preempted and what didn’t (not everything does). They also better understood what parts needed to be on-hand at all times and what didn’t based on the downtime impacts, inventory lead times, and total cost of the repair.
In the end, our Proof of Value (POV) extrapolation forecast millions of dollars in savings across the business. They are now exploring offering this capability as a value-added service to their customers after the warranty runs out.
