For original equipment manufacturers (OEMs) in the technology sector, “going global” has long been a trend, aspiration and — for many — accomplishment. Their supply chains and logistics networks are extensive thanks to partners and suppliers spread around the globe, and their customer bases have grown across borders just as quickly. But as customers’ products and devices inevitably break or stop working as intended, they need a speedy, convenient solution to fix those products — and it needs to be available no matter where they’re located.
As you contemplate the need for a global depot repair services strategy, here are a few questions to consider:
- Are reverse logistics and depot repair services built into your global supply chain?
- Do you have in-region facilities equipped to handle those products or do you have to ship them overseas?
- Even if your facilities are in-region, are spare parts and components also readily available to fix those products? Or do they need to be ordered from faraway locations?
- Can you support legacy products globally as they approach end of life?
Expanding global reach is essential to success for many OEMs, but servicing products in new regions can be costly and introduce complexities, and building your own infrastructure is likely not the most environmentally friendly option for your business, either.
As customer needs evolve, circular economy demands grow and regulations for sustainability go into effect, the global depot repair service market is expected to reach $45.4B by 2030, growing at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030.
Are your supply chain, logistics network and global depot repair services strategy up to the task?
For Starters, What is Depot Repair?
Depot repair services refer to the professional repair and related maintenance services for a wide range of products, devices, equipment, parts and components — ultimately intended to restore them to optimal working condition in a cost-effective, convenient and timely manner.
Typically performed within specialized, certified facilities or repair centers, depot repair services may include capabilities ranging from fault diagnosis and root cause analysis to component replacement and quality testing to refurbishment and de-manufacturing as well as sustainable end-of-life solutions oriented for recovery/return to manufacturing or proper disposition. The goal of depot repair services is to extend product lifetime and value, reduce e-waste and minimize downtime for customers with the right part at the right place and time for the right price.
OEMs with a global depot repair services strategy in place will find themselves well-positioned to support customer needs globally, contribute to the circular economy and reap the benefits. See how in our video:
Top 4 Benefits of an Outsourced Global Depot Repair Services Strategy for OEMs
While building a global depot repair infrastructure in house certainly has its appeal, it is not without its challenges, including a significant capital investment, ongoing operational expenses and finding the trained resources and time necessary to manage it all. Instead, many OEMs choose to outsource depot repair services and other product and customer lifecycle services so they can really hone in on the core activities that drive their business forward.
Among the top benefits of an outsourced global depot repair services strategy for OEMs are:
1. Greater Cost Efficiency and Scalability
As mentioned above, standing up your own global depot repair infrastructure in house requires significant investment. You have to recruit and hire (even amidst labor shortages), and then also provide ongoing training and certification for the talent you hire. If you don’t already have physical space available, you have to research, purchase and build while also making sure the location is convenient for customers and close to key hubs.
You’ll find costs adding up for everything else that goes into the logistics, transportation and warehousing associated with expert depot repair services — especially on a global scale. Outsourcing to an experienced depot repair services provider means they handle all of that for you, which streamlines supply chain costs and frees up budget and resources for other key business areas.
2. Improved Customer Satisfaction and Service Levels
A single outsourced depot repair services partner is well-equipped with the infrastructure, tools, processes and expertise necessary to effectively and efficiently manage the end-to-end repair process for a multitude of product types and industries. They tackle numerous challenges on your behalf, from import and export management to tax structures and global tariffs to spart parts forecasting and inventory management to facility capacity and global scalability as well as return-to-vendor management.
This means a lighter load for you, with streamlined operations and faster turnaround times, better inventory management on a global scale and improved customer satisfaction levels thanks to those reduced complexities.
3. Stronger Commitment to Sustainability
Any OEM can cultivate actionable sustainability with the right services partner on their side. Offering global depot repair services extends product longevity, enhancing customer value and satisfaction, and enables you to profitably recover, reuse and recycle products and parts instead of adding them to landfills. Flexible supply chain modeling, spare parts planning, de-manufacturing, parts harvesting and efficient stocking-level maintenance also help reduce e-waste. An eco-conscious depot repair services partner helps you plan for the future and sustainably optimize your reverse logistics and repair cycle.
4. Sharper Competitive Edge and Focus on Innovation
By outsourcing non-core activities like depot repair services, OEMs can focus their internal resources on higher-value activities such as product development, innovation and strategic initiatives. This enhances your competitive edge and improves agility in a fast-changing market, as you’re better equipped to innovate around your products while your depot repair services partner manages innovation around the repair process.
Depot repair service providers often have specialized expertise, certifications and cutting-edge technology for troubleshooting and repairing complex equipment. This technical know-how can help improve repair quality and ensure that products are returned to customers in optimal condition. Further, access to repair expertise like this can also help reduce operational costs, as an experienced depot repair provider can repair items more quickly and more efficiently at the scale your business demands.
14 Resources for Building Your Global Depot Repair Services Strategy
Getting Started With Globalization
If you’re just getting started with global expansion, here are some resources to help:
1. INFOGRAPHIC: Global Footprint Checkup: A Scorecard to Measure Success
Based on five key factors, assess your readiness and see how your company's supply chain globalization strategy measures up.
2. ARTICLE: Go Global With Everything-as-a-Service (XaaS)
Understand the top three challenges of global transformation and learn how to future-proof your business against rapid market changes.
3. ARTICLE: Global Transformation: 3 Key Areas That Impact Your Logistics Strategy
As you prepare to enter new global markets, pay close attention to these three areas to ensure your global transformation and logistics strategy is successful.
4. ARTICLE: How to Expand Internationally: Advice From 11 Top Global OEMs
Learn what 11 senior executives from top global OEMs said were their greatest challenges to expanding their businesses internationally.
5. WHITEPAPER: Get Ready. Get Set. Go Global.
Explore efficient, effective tactics to free up resources by going global — smoothly — and outsourcing key services and logistics processes.
Prioritizing Sustainability and the Circular Economy
If sustainability and environmental, social and governance (ESG) regulations are top of mind for you right now, here are some resources to get started:
6. ARTICLE: What Is the Circular Economy and How Can OEMs Help Close the Loop?
Learn how a circular economy works (versus a linear economy) and how OEMs can achieve circularity in their operations to contribute to sustainability.
7. ARTICLE: How to Follow Through on Your Company’s Commitment to Sustainability
A promise to improve sustainability doesn’t mean much if it’s not backed up by tangible actions. Here's how to follow through on your company’s commitment.
8. CASE STUDY: Cohesity: Facilitating a Greener Future Through Outsourced Repair Services
Discover how Cohesity partnered with Shyft Global Services for custom depot repair services that reduce service costs and scrap rates while supporting sustainability and the circular economy.
9. WHITEPAPER: Reengineering Your Supply Chain
Examine four focus areas — including sustainability, ethics and AI — for OEMs to boost supply chain resiliency and leverage an outsourcing partnership.
10. WHITEPAPER: Your Guide to Actionable Sustainability in IT
Learn how technology companies can take purposeful action to prioritize sustainability in IT, minimize their carbon footprint and reduce waste.
Finding an Outsourced Services Partner
If you’re seeking a simpler path to shift your business forward and are ready to offload non-core activities to a services provider, here are some resources for finding the outsourced depot repair services partner best suited to your needs and goals:
11. ARTICLE: Find a Global Logistics Partner You Can Lean on During Industry Change
Learn how to find a single partner who can help you streamline product repairs, simplify overall operations and provide a consistent customer experience.
12. ARTICLE: The Top 4 Challenges for Depot Repair Service Management and How to Solve Them
Consider these four key challenges in depot repair service management as well as these eight factors when assessing a potential depot repair services partner.
13. EBOOK: The Key Spokes of a Full-Circle Repair Strategy
Explore the three key spokes of a full-circle repair strategy and how an outsourcing partner can help keep you moving forward.
14. VIDEO: Global Depot Repair Service Capabilities
Shyft Global Services delivers comprehensive technology depot repair services across various industries and technologies on a global scale. Learn more in this video and contact us to get started.
About the Author
Steve Bair has been with the company since 1997 and currently serves as the Director of Global Engineering for the Repair Services organization within Shyft Global Services. He has extensive experience with and passion for product and services solution design, engineering, delivery and management. He has a proven track record in cross-functional leadership roles as well as weighing and balancing the objectives of the company and the customer to develop innovative solutions that solve complex business needs.
