If a product becomes damaged beyond repair, a customer can return it to the manufacturer through a depot repair service. Often, the damaged product is replaced with a similar unit that is shipped directly to the customer. The cost of the replacement is billed to the customer. The depot repair process tracks the status of each returned product from receipt in inventory, through shipment to the customer or installation in customer equipment. Moreover, customers can track the costs of repairing each product. For example, if the product is not repairable and requires replacement parts, they can create a sales order that details the replacement cost to the customer. Customers can also configure the depot repair process to allow the creation of sales orders for WIP jobs only after they complete the work for those jobs and know the price to charge to the customer.
Market Dynamics:
A rise in the complexity of products and increasing focus on product lifecycle management along with growing awareness regarding the importance of depot repair services are the major factors expected to drive the growth of the global depot repair service market during the forecast period. With increasing technological advancements of products, their complexity is rising, which further creates the need for specialized repair services. This in turn is driving the market growth. Moreover, factors such as growing expansion into new regional markets and diversification of service offerings by market players are likely to create growth opportunities in the market.
However, pricing and cost pressure, along with the lack of skilled professionals are the factors expected to hinder the growth of the global depot repair service market during the forecast period.
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