Aftermarket support and the supply chain

Abstract

Purpose To examine supply chain competences necessary to efficiently and/or effectively succeed in aftermarket support. Design/methodology/approach Using the aerospace industry as a context, this paper provides a brief overview of aftermarket support practices and trends and discusses the broader implications for aftermarket supply chain managers. Findings There are multiple approaches to aftermarket support. Which approach should be used depends on key variables including: technology, need for visibility and/or traceability, and need for collaborative product commerce. Research limitations/implications This paper is a general review. Future research should examine resources necessary in individual industries, other forms of relationships, and the influence of new technologies. Practical implications In many industries, there are significant opportunities for incremental profit in aftermarket support. Collaborative product commerce, alliances, a number of new technologies (e.g. web commerce), and security needs may play critical roles in determining whether or not a company's aftermarket support practices will be profitable. Firms without competences in these areas should seek help from trusted partners to fill competence gaps. Originality/value This paper explores an often ignored but significant line of business – aftermarket support. Lessons demonstrated in this paper may be used in a number of industries that rely on aftermarket support for incremental profit.

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