If you want to remain relevant and competitive in the future, you have to evolve continuosly - This old buisness wisdom also applies to service. A comprehensive programme of strategic realignment makes the service segment at DEUTZ fit for customer deamnds of the future.
1. Expanding Strenghts
The service business division has traditionally been a high priority at DEUTZ: A dense network of approximately 800 service partners in over 130 countries worldwide is available for local support of OEM and end customers. An effective system consisting of periodic training courses and audits ensures that each partner permanently meets the high requirements in terms of technical competence, workshop equipment and customer orientation. The DEUTZ service network logistics is also among the best: With 97% customer service satisfaction, the availability of spare parts is already the benchmark in Europe. In Asia and America, this high standard is also being realized step by step by continuously optimising the international supply chain. The continuous optimisation of the service network by connecting new service partners and through targeted acquisitions is a key component of the DEUTZ service strategy. In addition to acquisitions in Europe and the USA, cooperation agreements in China and the Middle East are a particular focus. In order to flexibly increase its service presence in regions with a small engine population in the future, DEUTZ relies on the so-called Man-in-Van concept: On-site customer support is ensured by mobile service technicians with fully equipped workshop vehicles without fixed location. Internal standards applicable worldwide and a special logistics and leasing concept ensure an internationally uniform, high level of quality.
2. From spare parts specialist to full services provider.
Hardware, logistics and technical competence for our own products – these are the pillars on which the service business of a system supplier like DEUTZ is traditionally based. From the Long Life Filter to a refurbished Xchange engine – the product range in the service department ensures economical operation throughout the entire life cycle of the engine. However, markets and customer requirements are changing, and new opportunities are emerging to create added value and retain customers in the long term. The ambitious goal: DEUTZ as a global full service partner that offers its end customers fast and comprehensive support beyond spare parts. By offering service agreements in the future, the local service partner can take over maintenance of the engine and equipment fleet. For end customers, this means not only cost and costing certainty, but also a significant increase in equipment availability and, more importantly, the possibility to focus fully on their own core business. From the established diesel engine to the new electrified drive solutions of the future, the range of services at DEUTZ will continue to evolve – from parts business to full service provider.
3. Interactive instead of reactive: Efficiency and customer loyalty through digital solutions.
None of the above-mentioned developments would be conceivable without the consistent use and further development of digital tools. Only the consistent networking of devices and participants in the service value chain will make it possible to tap into the enormous potential in terms of productivity and efficiency. The vision is clear: The devices of the future will monitor themselves, so that in the event of a service call, all information, parts and competencies will be provided faster and more efficiently than today. This will prevent the device from coming to a standstill and thus reduce productivity. The DEUTZ strategy: To create a comprehensive and flexible offer to meet the different customer requirements. Powerful telematics hardware and open and scalable IT infrastructure are the key components to make the benefits of Industry 4.0 a reality. The necessary basis for it is continuous data flow. For example, all relevant service information on a DEUTZ engine will be stored in a central, digital service checklist, regardless of which system or user recorded it. The result is a significant increase in transparency, efficiency and productivity – across technology and company boundaries.
SHAPING THE FUTURE TODAY.
Mr. Wellenzohn, where is the service at DEUTZ today?
DEUTZ service today is an essential part of our business. We want to differentiate ourselves from the competition, impress our customers and increase customer loyalty. Currently, we generate around €350 million with a 20% revenue share and are pursuing ambitious growth targets.
What is your current service strategy?
The DEUTZ service is absolutely competitive due to the development and our activities over the last few years, and we see potential for significant growth. If we want to continue to be successful in the future, we must continue to evolve – and we must do so quickly and decisively. To provide the necessary focus and speed, we have launched an internal service offensive: We are working full steam in cross-divisional teams to implement a large number of projects and concepts that will take our service to the next level.
What does this realignment in service mean for DEUTZ in specific terms?
We have a strong aftersales portfolio and a global service network with unique coverage and competence. We need to continue to improve our performance by establishing new service locations and mobile concepts like the man-in-van approach. However, we are convinced that we must offer our customers more in the future: digitalisation in the off-highway sector, growing competition on the internet and the trend towards one-stop shopping mean that manufacturers like DEUTZ will have to differentiate their service even more in the future. We want to increase customer loyalty by providing comprehensive support beyond our current core business in the form of digital products and services, by offering individual service agreements and with technical competence even beyond DEUTZ engines.
What will the DEUTZ service of the future look like for you?
For us, the service of the future is digital, networked and interactive. Thanks to the opportunities provided by digitalisation, we will establish new services and business models with our customers, which will offer benefits for both manufacturers and end customers. This applies in particular to the next generation of partially and fully electric drive systems with all their challenges, especially in terms of service, for example, regarding high-voltage technology and the associated battery hardware. End-to-end networking and the offer of holistic service concepts in this area will create real added value. For DEUTZ this is a great opportunity to position itself as a provider of full service support right from the start. This means we have to act now, and that is exactly what our service initiative is all about – shaping the future today!
DEUTZ News: Professional DPF cleaning as a cost-effective alternative
Diesel particulate filters (DPF) play an important role in exhaust gas after-treatment in modern diesel engines. However, safe and above all effective use of a DPF system is a science in itself: Combustion of the accumulated soot particles, the so-called regeneration, can only begin when the necessary exhaust gas temperature of at least 280 degrees Celsius is reached. What remains are the non combustible components – better known as ashes. This process significantly increases the service life and effectiveness of the filter system. If the filter reaches the limit of its ash absorption capacity over time, it must be replaced or cleaned – depending on the operating mode of the engine, this only happens after many thousands of operating hours. Professional cleaning is essential in this case, because inadequately cleaned diesel particulate filters can lead to a reduction in soot absorption capacity and an increase in exhaust back pressure. In practice, this means more frequent downtime regenerations and the risk of damage to the filter substrate, making replacement unavoidable. Fuel consumption is also affected: Optimum consumption values can only be maintained with a professionally cleaned diesel particulate filter, which keeps operating costs low. The existing DEUTZ service offer of exchange filters that are as good as new and industrially reconditioned Xchange DPFs is now being expanded by a cost-effective alternative: Professional cleaning of the filter by the local DEUTZ service partner. This cleaning process enables gentle and reliable cleaning at low cost. As part of a standardised process, all filters are thoroughly inspected and the result is documented in a detailed cleaning protocol. For end customers, this represents a simple and safe solution for reusing their own filter. The new DPF cleaning system is available now at the DEUTZ service location in Great Britain and will be introduced in other DEUTZ service centres throughout Europe in the coming months.