Why manufacturers (OEMs) choose a third-party service provider
See why more and more manufacturers (OEMs) are partnering with third-party service providers.
Read time: 4 minutes
Time is a precious commodity. So is prioritizing and allocating resources within your business. Both are crucial for any business to succeed.
Today, many OEMs are faced with a serious question:
Would you rather spend your time and capital building a service infrastructure to service your equipment or innovating, building, and running your business?
Equipment service and maintenance are vital. One way or another, a company needs to maintain and operate a service warranty program for its customers. Too often, this task is neglected until breakdowns occur, which can lead to downtime and costly repairs.
That’s why many OEMs have turned to third-party service providers for equipment servicing and even for the building and managing of their service warranty programs.
What is a third-party service provider?
A third-party service provider is an independent company staffed by highly trained and versatile technicians to provide all necessary hardware maintenance and services that their client company requires.
A Service Level Agreement (SLA) contract can be customized to precisely the technical support services needed. These can include:
Call center response
Client-side break/fix support
Other services defined by the contract
A big value in outsourcing some or all aftermarket service operations comes from the way it increases an organization’s core capacity for change and growth. When properly implemented, outsourcing leverages expert talent, improves overall business productivity, and reduces work cycles. It also can help to boost efficiency and prove a and cost-effective solution for the delivery of quality customer and equipment service.
When to use a third-party service provider?
Partnering with a third-party provider delivers many benefits and efficiencies.
For manufacturers considering outsourcing aspects of their service delivery, it’s important to understand that segmentation exists. It’s certainly an option to dive in and delegate everything to a third-party provider, but many times, the more straightforward option is to utilize them gradually for specific functions.
New equipment rollouts
New territories or lines of business
Upgrades and retrofits
24/7 customer service
Preventative and scheduled maintenance
Depot repair and exchange or parts management
Depending on the nature of a business’s operations, deciding upon the right level of outsourcing becomes a question of what to keep in-house versus what’s easier to delegate.
‘What to outsource?’ is a unique question that’s different for every manufacturer. And it’s one that must be asked when evaluating the value and benefits of working with a third-party service provider organization.
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