With tremendous intellectual capital invested in the assets they produce, A&D manufacturers are moving into main- tenance, repair, and overhaul (MRO) and aftermarket services such as spare parts supply. For defense contractors, this move is in response to the DoD's performance-based logistics mandates. On the commercial side, this is an attempt to develop new sources of revenue in a tight marketplace.
WHAT ANALYSTS RECOMMEND
To succeed in the aftermarket, A&D manufacturers need to extend design and production information for MRO purposes. This requires improved infor- mation flow from legacy applications as well as tighter integration across functional areas such as materials management, teardown and overhaul, work execution, and asset manage- ment. Administrative and reporting capabilities to support multinational operations and integration to financial software are also required.
WHAT SAP OFFERS
SAP provides a host of capabilities to support aftermarket services. These include aircraft maintenance planning and execution, line maintenance with an electronic logbook, overhaul plan- ning and execution, and resource- related billing. Configuration control functionality also helps minimize parts obsolescence while a component maintenance cockpit helps monitor all parts removed from an airplane.
ANALYSTS RECOMMEND THESE STRATEGIES FOR SEIZING THE MRO AFTERMARKET
IMPROVE SERVICE LEVELS WITH CUSTOMER RELATIONSHIP MANAGEMENT CAPABILITIES
The A&D aftermarket is a services market. And with services typically generating two to five times the rev- enue of the original sale, forward- thinking companies are seeking ways to improve service levels. This requires a focus on maintaining customer relationships.
WHAT ANALYSTS RECOMMEND
To assume a strong customer service orientation, companies need to over- haul their installation, repair, and main- tenance activities to shift revenues from product sales to services. This entails far more than Web access to technical catalogs and parts data. Companies need sophisticated master data management as well as forecast- ing and logistics capabilities to manage service parts planning and minimize the problem of parts obsolescence across multiple inventory locations and suppliers.
WHAT SAP OFFERS
SAP provides robust customer rela- tionship management capabilities that integrate with back-office ERP and inventory management functions. Powerful business intelligence, sup- ported by market-leading master data management capabilities, helps improve forecasting while comprehen- sive parts-management capabilities help ensure a positive customer experience.
MOVE TOWARD A LIFE-CYCLE SUPPORT MODEL
A&D manufacturers are increasingly required to consider support and maintenance concerns in original design plans ' especially under DoD initiatives such as network-centric warfare and performance-based logis- tics. This requires long-term planning that takes into account the costs asso- ciated with an asset over its entire life cycle.
WHAT ANALYSTS RECOMMEND
To succeed in the aftermarket, A&D manufacturers need to extend design and production information for MRO purposes. This requires improved infor- mation flow from legacy applications as well as tighter integration across functional areas such as materials management, teardown and overhaul, work execution, and asset manage- ment. Administrative and reporting capabilities to support multinational operations and integration to financial software are also required.
WHAT SAP OFFERS
SAP provides a host of capabilities to support aftermarket services. These include aircraft maintenance planning and execution, line maintenance with an electronic logbook, overhaul plan- ning and execution, and resource- related billing. Configuration control functionality also helps minimize parts obsolescence while a component maintenance cockpit helps monitor all parts removed from an airplane.
ANALYSTS RECOMMEND THESE STRATEGIES FOR SEIZING THE MRO AFTERMARKET
IMPROVE SERVICE LEVELS WITH CUSTOMER RELATIONSHIP MANAGEMENT CAPABILITIES
The A&D aftermarket is a services market. And with services typically generating two to five times the rev- enue of the original sale, forward- thinking companies are seeking ways to improve service levels. This requires a focus on maintaining customer relationships.
WHAT ANALYSTS RECOMMEND
To assume a strong customer service orientation, companies need to over- haul their installation, repair, and main- tenance activities to shift revenues from product sales to services. This entails far more than Web access to technical catalogs and parts data. Companies need sophisticated master data management as well as forecast- ing and logistics capabilities to manage service parts planning and minimize the problem of parts obsolescence across multiple inventory locations and suppliers.
WHAT SAP OFFERS
SAP provides robust customer rela- tionship management capabilities that integrate with back-office ERP and inventory management functions. Powerful business intelligence, sup- ported by market-leading master data management capabilities, helps improve forecasting while comprehen- sive parts-management capabilities help ensure a positive customer experience.
MOVE TOWARD A LIFE-CYCLE SUPPORT MODEL
A&D manufacturers are increasingly required to consider support and maintenance concerns in original design plans ' especially under DoD initiatives such as network-centric warfare and performance-based logis- tics. This requires long-term planning that takes into account the costs asso- ciated with an asset over its entire life cycle.
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