December 10, 2024 How A ‘Digital Thread’ Can Shape Aftermarket Success

Discover how manufacturers can repurpose data to drive customer engagement throughout a product’s lifecycle.

By Sam Burgess, CEO at Partful

Aftersales is playing an increasingly significant role in the success of modern manufacturing. When product margins are squeezed, the aftermarket is offering businesses another route to revenue.

Some manufacturers are even selling products with the sole intention of driving “future aftersales business on the installed base”, according to a Deloitte study. The consultancy found that many manufacturers are now generating 40–50% of their overall profits from services.

Yet, in many instances, manufacturers are still failing to take advantage of the aftersales market. One of the main reasons for this is their reliance on the traditional methods used to sell parts and services, which have not kept pace with modern standards.

It’s still commonly the case that buyers have to rely on PDFs or even paper-based product manuals and parts catalogues to help them make a purchase. When you have manufacturers constantly releasing new product models, the onus is also on the buyer to ensure they are using the right documentation.

This approach doesn’t make it easy for a buyer to accurately identify the specific part needed, find the corresponding name and number then place an order. In most cases, they are also required to submit their purchase orders over email or phone.

In an age of digital transformation, the disjointed nature of this buying process stands out in contrast to the intuitive consumer journeys we experience in other walks of life. This unfriendly user experience is the reason why OEMs lose two-thirds of their part sales to third-party sellers.

Enabling digital transformation

As such, manufacturers need to rapidly transition away from the traditional aftersales approach and embrace a seamlessly connected digital experience. To do this, manufacturers should look to tap into their product’s “digital thread” – the flow of data that traces a product’s lifecycle from cradle to grave. 

Can they use the data produced during the initial design phase to create visual imagery that can help buyers identify parts more accurately? Can they combine this with a product’s bill of materials to create a parts catalogue in the Cloud, so it is always available and up-to-date? Can they integrate those platforms with an e-commerce system to facilitate automated sales online?

There are technology solutions providing the answers to all those questions. For instance, it’s now possible to automatically convert CAD files into 3D models – these can also explode to reveal a product’s individual components. This is allowing manufacturers to create digital platforms that enable buyers to isolate the parts they need and buy them, there and then.

A virtuous data-driven circle

Several leading manufacturers are already embracing this approach to create highly visual, interactive aftersales platforms that are doing more than just drive sales. They are helping to create engaging user experiences that help to nurture brand loyalty. The ability to accurately identify and buy parts immediately is also helping to reduce product downtime by speeding up the repair process.

By tapping into their digital thread to create a slicker user experience, manufacturers are capturing a greater percentage of product aftersales and the insight that comes with that. This connected approach is helping them to then trace and review this sales data – so they can better understand how individual components are performing, how often they fail and how regularly they need replacing.

This is crucial information when managing aftersales stock capacity levels. But, it is also creating a virtuous circle of data-driven innovation, by informing future product designs and component supplier choices. 

It’s hard to imagine a future where these digital threads are not playing a fundamental role in each phase of a product’s lifecycle. So, manufacturers should be considering how to take full advantage of their data to shape their product’s success – from its initial development, right through to sales in the aftermarket.

About the Author:
Sam Burgess is a founder and CEO of Partful; an aftermarket technology provider enabling global OEMs to support end users with equipment aftercare, through immersive 3D modelling.

Prior to founding Partful, Sam served in the British Army, where he was responsible for the reliability of military machine assets. He subsequently worked as an engineering consultant with global OEMs, such as Chrysler and General Dynamics, developing product lifecycle strategies and aftersales support.

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