Aftermarket services come of age

I think it is safe to say that with Avnet’s latest announcement regarding their introduction of Avnet Integrated Resources , that the aftermarket logistics business just got a little more crowded,  a little more consolidated, and a lot more recognized.

The terms aftermarket services, integrated logistics, and product lifecycle managementare by no means new. They encompass the services commonly referred to as technical support, field support, service parts logistics, electronics repair, asset recovery, data destruction, and e-cycling. The “new” piece is what was once a fragmented industry of focused organizations servicing their niche in the aftermarket space is now regarded as a big business opportunity for companies like Avnet. And let’s not forget about Arrow Inc.’s interest in this “niche”. Almost two years ago, Arrow got into the aftermarket services space with their strategic acquisition of Converge and later branded the service offering ReSolve by Arrow.

What does all of this mean? For the marketplace, it means the recognition that profitability is not only about bringing a product forward; it’s about managing every phase of the product lifecycle from design to de-manufacture. For industry participants, it means that everyone needs to step up their game in terms of service strategy, competency and breadth as the “big-boys” have entered the game. And for customers, it means a qualified one-stop-shop for all of their life-cycle needs. Aftermarket services has come of age.