2004 Articles
August 17, 2004
Servigistics To Offer Parts Pricing Solution To All Auto Companies In Japan
Nikkei
TOKYO(Nikkei)—Servigistics Inc., a U.S. provider of service parts management systems, announced Servigistics Pricing Solution which helps companies increase the revenue and gross profits from sales of their service parts and determines the most appropriate price for each parts.
Servigistics Pricing was developed in the U.S. and is composed of a price database for auto parts and a software solution that can calculate the revenue changes by setting or changing the price for service parts. An auto company which uses Servigistics Pricing in U.S. , has successfully increased their sales revenue up to 15% to 30% and their profit up to 10% to 20%.
Servigistics Japan has also appointed a new board member, formerly the Vice President of Mitsui & Co., Ltd. who has extensive experience in the auto industry, in line with the company’s strategic direction to enhance its business in the automotive industry. The company plans to introduce the solution to auto makers in Japan.
It is true that parts sales and services revenue is merely 10% of consolidated sales for auto manufacturers, but generates a higher percentage of profitability as compared to brand new car sales, whose price competition is bruising. Servigistics believes there is a big potential to improve business for after service area and aims to expand the market demand.