Technology Advancements Reveal New Genuine Spare Parts Revenue Opportunities
Post-sale genuine spare parts can present a significant revenue stream for original equipment manufacturers (OEMs). While genuine part sales can present considerable challenges, many leaders recognize that technological advancements present opportunities to differentiate through post-sale services and a frictionless part sales process. Replacement parts commonly offer higher margins but can quickly erode when customers struggle to find the exact part they need without extensive support from service reps. With the current uncertainty in the economic landscape, many customers are focused on extending the life of their equipment (versus buying new), making now the perfect time to invest in digital tools to support your genuine parts business as a reliable source of revenue if it’s built for success.
When identifying and searching for a replacement part, customers frequently lack specific information about the spare parts they need. They might have a general description or a damaged part in hand, but they struggle to find an exact match without access to a unique identification, like a part number or the original bill of materials (BOM).
Trying to identify an exact part becomes a full parts detective investigation that leads to frustration, machine downtime, and potentially a lost sale to a non-genuine aftermarket provider. Some may call your service representatives, commanding more time and resources, while others will find a competitor with less friction in the buying experience. The complexities customers face when identifying replacement parts and the uncertainty surrounding whether they have found the correct part before purchasing could damage loyalty and weaken your competitiveness.
A successful genuine parts business is crucial for ensuring customer loyalty, differentiation, and capturing high-margin recurring revenue. Implementing a fully digital-first experience that enables anyone to visually identify, search, and buy genuine parts helps conserve margins with easy-to-use technology solutions that differentiate your brand experience regardless of sales channel.
We have compiled the top four competitive advantages our OEM customers report since implementing a digital-first strategy to support their genuine spare parts sales.
The Top Four Competitive Advantages OEMs Report from Implementing a Digital-First Genuine Spare Parts Strategy
1. AI-Powered Advanced Parts Search with 2D/3D Exploded Views
Simplify part identification for your customers by incorporating advanced artificial intelligence-powered (AI) identification and search capabilities. When users need a replacement part but lack the exact part number or clear identification, they usually resort to calling a service rep or searching for alternative options. Choosing a solution that utilizes CAD assets enables 100% accurate exploded views where customers can visually explore and identify the parts they need, and receive assistance from AI if needed. The digital replica shows how products are assembled and can highlight individual parts and their relationships within the larger assembly. When customers can explore the 2D or 3D model, they significantly improve part identification and reduce frustration.
2. AI-Powered Image Search to Find the Right Part
AI-powered image search completely innovates your parts identification process by giving end users the ability to snap a picture to analyze and find the right spare part. Platforms like Amazon and Google popularized image search technology that allows customers to snap a photo of the item they are looking for using their smartphone camera. For the OEM use case, the AI engine analyzes the image and cross-references it with the existing CAD assets and parts data to identify the right part accurately. AI-image search can significantly reduce the need for manual catalog searches by enhancing efficiency and providing a modern, user-friendly experience that users have become familiar with in their daily lives.
3. Single Source of Truth for Every BOM in the Product Lifecycle
Maintaining accurate Bills of Materials (BOMs) is essential to a product lifecycle. Discrepancies in BOMs across different systems and use cases can lead to inefficiencies for customers, maintenance reps, and anyone involved in the product lifecycle. By employing a unified BOM management system, you can ensure all departments—sales, engineering, and manufacturing—have access to accurate and consistent information whenever they need it. Streamlined BOM management enables a cleaner part search process that helps accelerate sales and enhances customer success. Keeping BOMs organized as a single source of truth ensures everyone is operating on the correct product information, including replacement parts, for its entire lifecycle.
4. Seamless Integration into E-commerce Platforms for Online Webshops
Whether you’re ready now to take your genuine spare parts business the e-commerce route today or in the future, customers expect a seamless buying experience similar to their shopping habits. Integrating your genuine replacement parts search technology with a robust e-commerce platform allows customers to easily search, view details, and purchase parts directly from your webshop or a customer portal. Utilizing ecommerce streamlines the parts ordering process, reduces manual dependencies, and improves the overall customer experience. Salesforce Commerce Cloud or Intershop offers powerful B2B ecommerce solutions that give end customers the ability to make direct purchases of genuine spare parts through a robust self-service experience.
OEMs That Implement a Digital-First Strategy for Genuine Spare Part Sales Have Clear Competitive Advantages
A robust, genuine spare parts business should not be considered a luxury but an essential strategic investment to make immediately. Enriching your genuine spare parts business with a digital-first strategy leads to improved customer satisfaction and increased top and bottom-line revenue.
Don’t allow outdated spare parts management and sales strategies to limit your business potential. Make the strategic investments to build a modern and sustainable genuine spare parts business with AI-powered digital solutions that build distinct competitive advantages.
CDS Partable is the leading AI-powered spare part search solution that helps OEMs sell more genuine spare parts. Contact us to learn more or see a demo!
Back to Blog
