Q&A | Helping OEMs Love Their Supply Chain

We sat down with David Schultz, NewStream’s business development manager, recently to discuss the process for onboarding new customers, their concerns, NewStream’s value adds, and how we help original equipment manufacturers (OEMs) love their supply chain.

What is your favorite part about working at NewStream?

A:  For starters, I love our culture, our people, and the teamwork approach to everything we do. Our business is highly customizable, and the services we provide differ for each customer.

Our flexibility is key, allowing me to use my creativity when building a program for a customer. That’s the most exciting aspect of my role in business development.

What are you most excited about as you review the marketplace and help customers customize solutions?

A:  There is a lot of opportunity in the marketplace right now. The supply chain challenges continue to be front and center for most organizations; companies in on and off-highway industries are looking for solutions.

NewStream is well-positioned, as we have the experience, expertise, and capacity to assist. Even more, we understand that a streamlined implementation timeline is important.  We can meet the customer’s lead time to minimize disruptions to their supply chain.

As NewStream’s business development manager, you talk kitting, packaging, assembly, and distribution with prospective customers regularly. What is a common reason for outsourcing these services?

A:  The most common theme that I see is that resources are limited. The majority of companies that we target in the on and off-highway segments are experiencing a significant increase in demand.

However, increased demand has been met by labor and space constraints, as well as significant supply chain delays. For manufacturers, we understand that supporting production and customer loyalty will always be top priorities, but resource limitations can affect other important areas of the business.

While outsourcing aftermarket parts kitting and packaging to an expert value-added provider can be overwhelming alongside other priorities, customers are continually intrigued by the idea of reducing their stress by outsourcing these services to an experienced provider like NewStream. 

Just think about how much you could do if a portion of your to-do list were instantly moved to a trustworthy expert! We do just that, delivering the confidence customers need to meet their goals and grow their businesses.

What are customers most surprised about after talking with the team and touring NewStream’s facility?

A:  The first thing customers mention after touring is our high-energy and upbeat work environment, specifically the culture and knowledge of our employee-owners as they move through the facility.

They always mention the level of organization, technology, and quality that they see in every area of our operation. Most notably, prospects are surprised by the variety of services and the ability to customize programs to meet customer needs.

From trucking to construction to mining, NewStream works across a variety of on- and off-highway industries. Where do you see the most need for NewStream’s value-added services?

A:  Fortunately, the on and off-highway segments that we serve are experiencing tremendous growth or a hyper-focus on the throughput of aftermarket parts to end-users, and not just in the industries you mentioned. 

Utility vehicles, agricultural equipment, and aerial work platforms are also seeing higher demand than forecasted 12 months ago.  We understand that in a time of high demand, the focus shifts quickly to ensure the correct parts are in the right place at the right time.

NewStream helps customers in all of these industries focus on customer service and fulfillment, while we are in the background, effectively putting together kitting, packaging, and assembly products to help fuel their aftermarket parts business success.

What is the average lead time to transitioning the business once both parties approve pricing?

A:  Fortunately, our structure allows us to onboard a new program quickly. The lead time is primarily driven by the program’s size and the customer’s urgency.

Transitioning a handful of kit part numbers can be done over several weeks. However, an extensive program with dozens of SKUs would require a longer lead time. Overall, we estimate a 60-day average lead time to transition the business to NewStream after a contract is executed.

Paint us a picture, David. Contract negotiations are complete, and the customer is moving through the onboarding phase. What do the customer’s demeanor and confidence look like now compared to when they first called you?

A:  Searching for the right value-add solution provider can be a cumbersome and stressful process.  Kitting and packaging are critical components of an OEM’s aftermarket parts business. Essentially, we take an overwhelming situation and help the customer love their supply chain again.

There is a sense of relief and excitement during the onboarding phase for all players – from members of the C-suite to category managers to procurement, they all see the value of NewStream as a partner. They are ready to move forward with confidence.

The quality and care put into the packaging process are highly visible and directly affect the overall customer experience. The OEM’s focus turns to the solutions NewStream can provide for an all-inclusive program that solves problems, enhances throughput, and improves the overall customer experience.

Let’s pretend I’m an automotive OEM looking to outsource my kitting program. What are your Top 3 recommendations for me as I start this process?

A:  For starters, I would suggest that the OEM review the performance of the in-house kitting program and understand the challenges that arise from building the kits internally.

With that in mind, I would build a list of the things I am looking for in a kitting services provider.  In fact, our team has put together an easy-to-follow checklist for starting a kitting program. This is an excellent resource for any OEM.

Secondly, the quality of your kitting program will significantly affect your customers’ experience. The Kitting and Packaging supplier must have the capability to provide a high level of service, as the performance will have a direct reflection on the OEM.

I would recommend that the OEM request referrals and research the book of business that the kitting and packaging service providers currently handle. If the referrals report dissatisfaction with the service quality, I would consider alternatives.

Lastly, I would recommend that stability and experience matter. The OEM should look for a supplier that provides excellent quality and customer support. The supplier should be able to present several case studies that highlight performance over time.

Finally, make sure they have a healthy financial position and an engaged, motivated workforce.

Empowering OEM Success

Thanks to David for giving us some insight into the common concerns we see with on- and off-highway current and prospective customers, and the solutions NewStream can provide to help streamline processes, free up critical resources at the OEM level, and drive aftermarket parts profits for our customers.