The Expanding Role of Services

Capability gaps remain in a number of important areas

Few distributors have yet to truly "crack the code" on services.  Capability gaps remain in a number of important areas, including accurately defining the scope of the service, ensuring the service addresses a specific customer or supplier need, managing the portfolio of services as an integral part of the business rather than a side offering, creating a consistent approach for delivering the services efficiently and convincing customers of the value of being delivered.

In far too many instances there also remain disconnects among:

• The costs associated with delivery of the service
• The customer or supplier's perception of the value the service delivers
• The revenues and margins realized by the distributor from the service.

ACTION POINT: Understand the true costs of providing individual services and their ultimate profitability.