The stagnation of capital spending in the capital goods market leads to longer product lifecycles. For this reason the demand for support services and spare parts is continuously increasing as those are needed for maintenance and repairs. For suppliers of capital goods this means opportunity and challenge at the same time: While highly profitable after-sales services can compensate declining new product sales the after-sales business requires efficient service organisations which make support services and spare parts available, according to service level agreements.
Industrie Management | Volume 20 | 2004 | Edition 5 | Pages 32-34
