Growth in Post-Warranty Market Demands New Solutions
The post warranty market has grown significantly in the last few years. Back in March we reported that also wind turbines components OEM’s started using our trading platform, contributing to a double-digit growth for the wind turbines aftermarket. As a consequence, more and more buyers are now opting for transparent and quick ways to procure spares for their wind turbines. We at Spares in Motion have taken time to talk to our users and find out how to help in meeting these needs.
Our users, located worldwide, suggested that the main common need right now is to simplify and speed up the whole process of procuring spares parts. Procurement for post warranty turbines proves to still be a complex matter as the process itself can be lengthy and demanding; lead times are too long, prices are often unclear or too high and quotes are not always quickly given, which creates a high workload for the procurement administration. This proves to be challenging, especially when a buyer is interested in buying parts and repairs that are not main components. Moreover, in many countries the post-warranty market is still relatively new and buyers struggle to find exactly what they are looking at reliable sources close to them. A representative of Duke, already user of Spares in Motion, told ‘there are not enough suppliers in the US and purchasing from Europe is difficult as suppliers are not set up in our system’.Terna, a renewable energy sources company, told instead ‘long lead-times are a big trouble as there is almost no local stock where we operate’.
The quote process also appears to be a big problem for most users, as suppliers are often slow in giving quotations and buyers are often busy comparing different prices. As Deutsche Windtechnik told us ‘we actively compare prices - if available - from different suppliers in our ERP’, so it becomes a long process to ask quotes from different suppliers just to be able to compare the spares before choosing the right one; ‘It’d be good for us to use a platform with products and known prices’, a Deutsche Windtechnik representative added. On the other side, suppliers often struggle with hundreds of requests for quotes that don’t actually lead to orders, and as reported by companies such as ABB, SKF, and more, ‘dealing with each independent small end-user can be demanding’. This becomes even more problematic in the moment that suppliers want to provide to buyers located in other continents, risking not to be paid or to deal with unreliable buyers.
After further deepening in the aforementioned issues, Spares in Motion -- already active as a leading trading platform in the wind turbines aftermarket -- has decided to take action; in the last couple of months, in fact, we have used all of our energy and best resources to research and develop the platform towards a new solution which is aimed at solving the main issues for buyers and suppliers, making the transaction process much quicker, and easier, worldwide, 24/7. But also improving transparency, reliability, and the system for quotation. The new development will be officially launched in the second half of September and it has already been approved by a number of important partners both on the supply and the demand sides. This makes us confident that our new direction will suit and satisfy the needs of the current market, playing a pioneering role in the wind turbines post-warranty field.