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JLG Industries Revamps Service Parts Pricing Strategy with PTC’s Solution
Technology Category
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Equipment & Machinery
Applicable Functions
- Sales & Marketing
- Business Operation
Services
- Cloud Planning, Design & Implementation Services
The Challenge
JLG Industries, a renowned manufacturer of aerial work platforms and telehandlers, was facing increasing competitive pressures on its replacement parts business. The company was using a cost-plus pricing strategy for its service parts, which was proving ineffective. This approach created a 'blind spot' and lacked market adaptation. Customers were seeking more cost-effective solutions and started buying non-OEM replacement parts from competitors, compromising quality for lower pricing. This trend signaled to JLG the need for a new approach to parts pricing. The challenge was to optimize pricing for 140,000 service parts with a department of one.
About The Customer
JLG Industries, Inc. is a globally recognized company that has been earning customer confidence and trust through innovation since 1969. The company manufactures JLG® aerial work platforms and JLG and SkyTrak® telehandlers. JLG’s customers are their greatest priority, and the company remains steadfast in its commitment to understanding customer challenges. The company was facing competitive pressures on its replacement parts business and needed a solution that enabled more strategic service parts pricing to meet mission-critical goals to increase profit, increase revenue, and improve data integrity to better compete in the marketplace.
The Solution
JLG Industries adopted PTC’s Service Parts Pricing (SPP) solution to revamp their pricing strategy. The SPP solution allowed JLG to organize and develop their strategy and assess their competitive environment. The solution was presented to JLG’s leadership team by the JLG IT department and Dali Ribeiro, Parts Pricing Manager at JLG. The value analysis of SPP, along with a commitment to closely monitoring and tracking SPP’s impact on service parts revenue and profit, led to SPP being adopted as a strategic initiative for JLG. The implementation of SPP moved JLG away from managing pricing strategy through an extensive array of spreadsheets. The solution was hosted on PTC's servers, alleviating the burden of maintaining an on-site solution by JLG’s IT department.
Operational Impact
Quantitative Benefit
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