SAS Shines Spotlight on Hidden Aftermarket Profit Streams

25 October 2006

SAS leverages leadership in warranty and forecasting analytics to transform service chain cost centres into an integrated profit centre

Companies that are challenged by maximising aftermarket profits now can turn to SAS, the leader in business intelligence, for transformation. Today SAS announced the release of its SAS® Service Intelligence software suite, an integrated family of solutions that monitors, predicts and optimises a company’s entire service chain. The suite uses the power of the popular SAS® Warranty Analysis solution by combining it with the forecasting strength of SAS® Service Parts Optimisation and SAS® Service Operations Optimisation to harness a goldmine of previously disconnected business processes.

As product margins dwindle under intense global competition, leading-edge companies are recognising the ability to harvest more profits through improved forecasting, suspect claim analysis and reduced inventories while maintaining and even improving customer satisfaction levels. They are realising competitive advantage by improving quality and performance throughout the service chain, and even feeding timely quality reporting back into design and manufacturing.

“Post-sales service ranks among the top three priorities for chief financial officers worldwide, and 68 percent of companies now have a vice president or higher overseeing service performance,” said Mark Vigoroso, Chief Research Officer and Senior Vice President, Service Chain Management, Aberdeen Group. “As best-in-class companies scale their technology investments, the key thing to keep in mind is to partner with a technology provider that not only provides a point solution to meet their most immediate need, but also provides a flexible platform to build on in the future.”

For Shanghai GM, a US$1.5 billion joint venture between General Motors and Shanghai Automotive Industry Corp., implementing the SAS Warranty Analysis solution two years ago marked the starting point for the company to gain a better understanding of its warranty expenses and its aftermarket service operation. In fact, Shanghai GM served as one of the inspirations for creating the SAS Service Intelligence suite. “We are making constant progress and after six months of using SAS, we are still discovering new ways of improving our warranty analysis process,” said Nanxiang Gao, Warranty Business Representative and Field Performance Engineer within Shanghai GM’s Quality Department. “This also has an impact on the efficiency of our after-sales campaigns because now we know exactly how much money is available for after sales.”

The new Service Intelligence suite helps companies view aftermarket operations holistically to better retain satisfied customers and build brand image. Companies using the suite gain competitive advantage by recognising the service chain as one of the keys to developing an ongoing reputation of excellence.

Today’s announcement was made at BetterManagement LIVE, a business conference in Las Vegas that brings together more than 1,000 attendees from the public and private sector to share ideas and knowledge on critical business management issues.

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