Servitization: how manufacturers can put the customer first

Posted on 3 Mar 2016 by The Manufacturer

Moving from production led to value led manufacturing is vital in today’s business climate, say HSO - a leading provider of innovative enterprise business solutions.

The world in which manufacturers operate is always evolving – and changes happen quickly.

Before you know it, you are lagging behind the competition and having to take major steps to catch up.

Your margins are diminishing, you cannot meet the expectations of your customers and you are starting to lose them to the competition. How can you avoid this?

The UK manufacturing industry has been in relative decline since the 1960s. Figures from the UK Office of National Statistics show that manufacturing, as a share of GDP, has fallen from more than 32% of GDP in 1970 to the 12% we see today.

Manufacturers must, therefore, find solutions to maintain stable profits. Continuous service and support activities can provide a more stable revenue stream outside of long term contracts.

Choosing a strategy should involve not only how an organisation can add value for customers, but also how the organisation can be shaped to make it possible.

As part of that strategy, manufacturers must make a mental shift in their approach to service. Today, this is not a cost, but an opportunity.


The benefits of servitization are many and varied. By using the approach to get closer to customers, businesses drive up loyalty levels; develop more valuable supplier-customer relationships and ultimately generate recurring and incremental revenue streams.

The following whitepaper examines the manufacturing industry and the benefits of servitization in greater detail:

Download our Manufacturing Servitization whitepaper to discover more.

For more whitepapers on the subject of Servitization click here

For more information about HSO, visit the website.