Why is it so difficult to offer loaner managed programs by many OEMs?

Why is it so difficult to offer loaner managed programs by many OEMs?

Loaner management is program mostly offered by companies having below criteria:

– OEM owns limited service centers geographically where product has to be shipped for repair/replacement post web investigation

– Product devices are low/moderate complex and easy to ship

– Cost of shipment is too low compare to having field service operations in every territory

– Sales territories are often narrow whereas service territories are broader in nature

Many others.

When it comes to operations there are challenges like: –

– Cost of forward & backward shipment line, installation of loaner equipment has to be driven by contract terms.

– Contracts are missing out on loan periods, warranty association, audit rights and customers’ responsibilities towards loaned equipment’s.

– Visibility of equipment’s location and operating hours

– Equipment’s delivery complexity in metros vs remote areas

– KPIs associated with loaner program are complex in nature

If your business resonates with above, schedule a meeting with our experts now!

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