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Profiting From Service and Parts Management

An improved Service and Parts Management (SPM) strategy can help automotive companies increase fill rates, reduce backorder lines and decrease inventory.


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  • Published on:
    2007-09-25 12:11 PM

Service and spare parts operations are critical to business success. They offer a profit margin up to 10 times greater than that of the initial sale. On average, post-sale service accounts for 20% to 30% of revenue and as much as 40% of profits. In addition, service can be key to securing customer loyalty, fostering a manufacturer’s brand name and maintaining competitive differentiation. Improving its Service and Parts Management (SPM) strategy can bring significant business benefits to automotive companies.

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