Increase Topline Growth in the Off-highway Vehicle Industry by Optimizing Spare Part Prices
Changes initiated by customers are rarely implemented in a way that leads to improved margins – this is one of the results from the Global Pricing Study, carried out in 2014 by the international strategy consultancy Simon-Kucher & Partners. In fact, half of the surveyed suppliers were unable to increase their margins during the product lifecycle. Best in Class companies, however, show that margin increases of more than 10 percentage points are possible. The recipe for success here is change management excellence. This article rovides an overview of typical challenges linked to managing changes and shows what suppliers need to do to maximize their profitability during the product lifecycle.