The High-Stake Challenges Facing HVACR OEMs When Selling Genuine Spare Parts
The commercial HVACR industry operates in a realm of high stakes and intricate systems. Unlike their residential counterparts, commercial HVACR units—from powerful chillers and complex rooftop systems to mission-critical refrigeration units and sophisticated building management systems—are custom-engineered to meet the precise demands of large-scale facilities. These custom-made solutions are optimized for performance and create a complex ecosystem of interconnected components that each play a vital role in the overall system’s functionality.
Even a seemingly minor part failure can trigger a cascade of issues, resulting in significant downtime and impacting everything from occupant comfort and safety to the continuity of essential business operations.
In the commercial sector, downtime is more than just an inconvenience; it represents lost revenue, disrupted production lines, and potential safety hazards. For Original Equipment Manufacturers (OEMs), the aftermarket for spare parts is a significant and often lucrative revenue stream. However, capitalizing on this opportunity requires navigating a complex landscape and overcoming numerous challenges.
Many OEMs find themselves struggling with inefficient spare parts management, which can lead to lost sales, frustrated customers and partners, and increased operational costs. While establishing an online parts catalog is a fundamental step, it rarely solves the intricate problem of identifying the right part quickly and accurately.
Without addressing the core challenges of spare parts management—including data silos, complex part identification, and inefficient ordering processes across sales channels—many OEMs risk leaving significant revenue on the table for themselves but also for their vital authorized distribution networks. Furthermore, they risk damaging hard-earned customer and partner relationships through inefficient parts ordering processes that can lead your end users down a path of non-genuine OEM parts.
10 Signs Your HVACR Spare Parts Business Needs a Digital Transformation
Our commercial HVACR OEM customers encounter numerous challenges in their aftermarket businesses. While some OEMs recognize the need for a direct sales channel to serve specific customers and manage particular product lines, they often rely heavily on their dealer network for spare parts sales and service. To effectively address the unique challenges in the parts sales process, OEMs should manage spare parts data and coordinate seamlessly across multiple channels.
Let’s explore the ten signs that your commercial HVACR spare parts business is in need of a digital transformation.
- Complex Part Identification: Commercial HVACR systems are intricately custom configured, involving a vast catalog of specialized parts. Identifying the correct replacement part is a significant challenge, even for experienced technicians. Outdated catalogs, inconsistent part numbering, and a lack of clear visuals exacerbate this issue, and can lead to increased downtime, profit erosion, non-genuine part usage, and dissatisfied customers. Implementing a modern, digital spare parts catalog with AI-powered visual search solutions can provide multiple ways to identify, find, and buy spare parts, including exploded views, serial numbers, AI image search, and more. It can help you clean and manage product data and standardize part numbering.
- Slow and Inefficient Ordering Processes: Traditional ordering methods like paper catalogs, phone calls, emails, and outdated part search solutions are slow and error-prone. These inefficiencies can lead to delays in repairs, increased downtime and costs, and frustrated customers. Integrating online ordering with existing inventory and ERP systems is crucial but can be complex. Whether selling directly or through partners, transitioning to a fully integrated e-commerce or customer portal platform that connects with business critical systems like inventory management, PLM, ERP, and CRM systems can seamlessly automate the ordering process.
- Counterfeit and Substandard Parts: The market for HVACR parts is susceptible to counterfeiting, posing equipment risks and tarnishing the OEM’s reputation. Identifying and preventing counterfeit parts is a constant challenge. Unlike some industries, HVACR lacks a standardized part numbering system, adding complexity. Implement a solution that supports quality control to verify part authenticity and use a standardized numbering system across all data and sales channels.
- Limited Inventory Visibility and Management: Maintaining optimal spare parts inventory is a delicate balance. Too little inventory can cause stockouts and delays, while excessive inventory can tie up capital and risk obsolescence. Accurate demand forecasting and real-time inventory tracking are essential but often lacking. Integrating a parts search solution into your inventory management system with real-time visibility across all locations to leverage data analytics can optimize inventory and delivery.
- Meeting Customer Expectations for Fast Turnaround: In commercial HVACR, downtime can be costly. Customers expect rapid repairs and minimal disruption. OEMs should deliver solutions across all channels to quickly supply the right parts. Optimize the entire spare part sales process, from search to delivery, to give customers a B2C-like experience.
- Lack of Customer Data: Without a robust data analytics platform, HVACR OEMs may be missing out on valuable insights into customer behavior and preferences. The data can be used to personalize offerings, improve customer service, and optimize product offerings.
- Increased Competition: The HVACR industry is becoming increasingly competitive. OEMs should find ways to differentiate themselves from the competition and offer a superior customer experience to the aftermarket. Leaders in the industry are focused on providing an exceptional customer experience to build strong relationships with customers and partners by giving anyone the ability to ID, search, and buy genuine OEM replacement parts.
- Missed Revenue Opportunities: Many HVACR OEMs are leaving money on the table by not fully capitalizing on the aftermarket for spare parts. A digital transformation can help them capture a larger share of this lucrative market. Develop a comprehensive aftermarket strategy that includes online parts sales across each of your sales channels.
Meet CDS Partable: The AI-Powered Spare Part Search and Sales Solution
Investing in AI-powered aftermarket spare parts search and sales solutions is a strategic investment that can empower HVACR OEMs and their partners to thrive in the competitive aftermarket landscape and sell more genuine OEM parts.
With CDS Partable, you can enable anyone to search for spare parts using serial numbers, exploded views, descriptive words, or even a picture. You can improve your customer’s experience and build the confidence buyers need to make an online purchase.
By delivering an exceptional customer experience across every sales channel, you can increase revenue and drive operational efficiency with the technology that is paving the way for HVACR OEMs to have a successful spare part sales experience.
To learn more or see a demo, contact us today!
