Especially for High-Tech Service Parts
Lost sales. Reduced productivity. Diminished brand reputation. None of these are good news for high-tech original equipment manufacturers (OEMs).
As a high-tech OEM, the time to resolution in an outage matters. You make service support promises to each of your customers with a commitment to delivering your mission-critical parts within a specified delivery timeline. These service levels are stipulated in the service contracts you have with your customers. Not meeting your service contracts due to a logistics delivery failure can carry a hefty price tag, but do you know just how much?
The Total Cost of Service Failures
There are many moving pieces that need to be coordinated to quickly and efficiently resolve an outage. The first, and most critical, is the delivery of the replacement or service part that is required to address the issue. Suffering from service failures due to post-sales logistics delays or misfires slows down the entire remediation process and carries a significant price tag. To illustrate – let’s take a look at the cost of a Data Center outage.
According to the Uptime Institute’s 2022 Outage Analysis Report, over 60% of outages cost more than $100,000, an increase from 39% in 2019; 15% of outages cost more than $1 million, an increase from 11% in 2019.
The average recover time is 199 minutes (about 3 and a half hours) at a cost of more than $900,000. The more frequently you experience downtime, the higher the cost to your organization. For example, companies with frequent downtime have 16x higher costs than those who don’t, according to Logic Monitor’s IT Outage Impact Study.
OEM Post-Sales Logistics Outsourcing Solution
It goes without saying that service parts logistics is not an OEM’s core business. Leading OEMs, therefore, outsource this function to a third-party service parts logistics specialist to meet their delivery needs. In this process, the OEM notifies the logistics partner of what part(s) needs to be delivered and where. It then becomes the partner’s responsibility to fulfill the order within the pre-determined timeline.
Certain industries carry a higher-than-normal risk of outages. These include:
- Banking and finance
- Media and communications
Lost revenue is not the only byproduct of service failures. Companies also experience lost productivity, reputational damage, data loss, and potentially, loss of market share. More than 1 in 4 consumers won’t do business with your company because of outages.
Selecting the right logistics provider becomes a critical factor for meeting contractual service commitments to customers. High-tech OEMs need a post-sales solution they can rely on with a proven track-record of meeting the B2B delivery needs of OEMs across the globe.
This post-sales logistics solution provider must have the capabilities required to meet all SLAs on time and in-full. It must offer a globally tailored service that supports your business – avoiding the negative impacts listed above.
That’s the business Flash Global is in.
Flash Global offers two-hour, four-hour, next flight out, and next business day service parts delivery. We take pride in not only offering an array of delivery options, but also maintaining our due diligence to ensure your mission-critical parts reach their destination within the timelines we commit. Our SLA achievement rating to our customers is 98%+ – meaning when we say it is going to be there, we will do everything within our power to ensure it arrives on time.
When your reputation is on the line, along with your customer’s – the choice is quite simple.