The manufacturing world is changing faster than ever — yet many Original Equipment Manufacturers (OEMs) are still operating with playbooks written for the last decade. From fragmented global service to untapped after-sales potential, the hidden challenges facing OEMs today are not just operational — they’re strategic blind spots.
Having observed this industry closely, one thing is clear: the OEM landscape is at a tipping point. Evolving customer expectations, rising costs, and the urgent need for digital transformation are redefining what it means to stay competitive.
Let’s explore the key challenges that often go unspoken — and how the most forward-thinking OEMs are turning them into opportunities for growth.
By Amit Chauhan
Vice President
1. The Service Paradox: Products Are Global, but Support Is Local
OEMs operate across continents, but their customer support models often remain fragmented, region-specific, and inconsistent. Today’s customers no longer accept that.
According to Salesforce’s State of the Connected Customer 2022 report, 83% of customers expect immediate interaction with a company representative after reaching out. Whether your customer is in Berlin or Bengaluru, they expect the same level of speed, accuracy, and personalization.
The problem? Traditional service models were never designed for this level of responsiveness. To stay relevant, OEMs must rethink how service is standardized and delivered across global footprints — balancing localization with consistency
2. The After-Sales Blind Spot
It might surprise you, but after-sales service contributes up to 50% of an OEM’s total profit (McKinsey & Company). Yet, many OEMs still treat after-sales as a cost center rather than a growth engine. This mindset leads to missed opportunities in spare parts management, warranty tracking, predictive maintenance, and customer engagement.
Here’s the kicker: in today’s competitive landscape, it’s not the product alone that retains customers, it’s the experience after the sale. A single unresolved service issue can push a loyal customer to explore alternatives.
3. Data Is Everywhere, But Insights Are Nowhere
OEMs are sitting on a mountain of data—service histories, IoT device logs, customer interactions—but it’s often siloed across multiple systems. This creates what I call the “data illusion”: you think you know your customer, but you only see fragments of the story.
The future will belong to OEMs who can unify this data into a single source of truth. Only then can they move from reactive service to proactive and predictive service.
The Path Forward
These challenges are real, but they’re also an opportunity. The OEMs that will thrive are those who:
- Standardize service processes across geographies.
- Elevate after-sales from a cost center to a profit center.
- Break down silos and create unified customer views powered by digital platforms like service CRMs.
This isn’t just about keeping up—it’s about building resilience, unlocking new revenue streams, and fostering long-term customer loyalty.
My Final Thoughts
The OEM industry is evolving faster than ever. Customers demand speed, transparency, and seamless service experiences. The OEMs that will lead the next decade are the ones who act now — investing in connected ecosystems, smarter use of data, and global service excellence.
The future isn’t waiting. The real question is: will you see these challenges as barriers — or as opportunities to innovate and differentiate?