Dieffenbacher is a leading global manufacturer of complete turnkey production lines for wood-based panels. The independent family-owned company was founded back in 1873 in Eppingen, Germany. Today, Dieffenbacher employs more than 1,700 people and has more than 16 subsidiaries with production facilities and sales & service offices worldwide. As an equipment manufacturer with tens of thousands of purchased parts, the spare parts business is of enormous importance to Dieffenbacher.
SUCCESS STORY
DIEFFENBACHER Solves Pricing Complexity for Purchased Parts
Thousands of spare parts are frequently required worldwide and must be available at short notice. Due to the lack of insight into the market and competition, spare parts prices have been determined on the basis of a traditional overhead calculation. Therefore, Dieffenbacher was barely able to react to market dynamics and volatile competitive situations.
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CHALLENGE
"Our pricing was very traditional"
Across the globe, there is a constant demand for thousands of parts that must be readily available at a moment's notice. Due to the lack of market insight and challenges regarding competitive intelligence, Dieffenbacher used to apply traditional cost-plus pricing for spare parts. In a challenging competitive environment with numerous competitors offering the same parts as Dieffenbacher, they were unable to swiftly adapt to market dynamics as required – with pricing being the key lever to change that. Reflecting on the company’s future, Ralf Schmidt, Head of Global Service Wood & Recycling, faces two major challenges:
1. Leveraging spare parts to create a sustainable competitive advantage.
2. Enhancing customer relationships to establish Dieffenbacher as a trusted and dependable partner for comprehensive and seamless spare parts provision.
Competitive intelligence for purchased parts at the push of a button
Competitor prices, lead times and availabilities are constantly monitored for every spare part in the Dieffenbacher portfolio to enable proactive and market-driven price adjustments. Dieffenbacher particularly appreciates the continuous support and easy setup - from the data enhancement to results presentation and software access in only 2 weeks.
Thanks to MARKT-PILOT, Dieffenbacher succeeded in transforming their pricing strategy from traditional cost-plus pricing to market-driven spare parts pricing. This helps Dieffenbacher maximize parts revenue and profit as well as improve their customer relationships. Building and implementing an agile operating model in today’s spare parts business takes time and continuous optimization - which makes it even more important for Ralf Schmidt's team to embrace a long-term collaboration with MARKT-PILOT.
Schmidt states: "The cooperation was a complete success. Not only does MARKT-PILOT's pricing software perform reliably, the team also supports us with all our concerns and adapts the software to our needs."
"MARKT-PILOT worked in a solution-oriented way from the start and the cooperation was very productive. They were able to keep their promise and showed that they go the extra mile."
Ralf Schmidt
Head of Global Service Wood & Recycling at Dieffenbacher
Amanda Smith
FOUNDER, CEO & EXECUTIVE CHAIRMAN
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