A One-Stop Value PropositionFri, 09/01/2017 - 13:26
Gaden’s value proposition is unusual: a company that offers repair services, original equipment manufacturing, distribution, licensing and client representation. Director General Gabriel Roldán describes Gaden as a one-stop-shop for specialized, high-technology products. Not all companies can easily manufacture or sell the products and services they manage.
Selling the majority of peripheral components for CNC machines provides Gaden with its competitive advantage, allowing it to distribute and repair parts economically. Machine manufacturers are not direct competition because the company’s goal is to renew product guarantees as though those products were original pieces, ensuring the same durability. “Our staff aims to repair pieces at below 50 percent of the original price of a new part,” says Roldán. Being able to both manufacture and service parts gives a broader perspective of the market and makes the company a comprehensive service provider.
“Depending on a company’s position in the supply chain, it requests different volumes of product and service.” OEMs manage more machines and mass production, which can mean heavy wear and tear. The automotive industry presents this challenge: sheer repetition of an action thousands of times a day that can deteriorate equipment rapidly. The increase in manufacturing with aluminum also ups the ante on how quickly a machine will need repairing. More and more frequently, this metal is being integrated into Audi, Mercedes-Benz, Land Rover and Ford vehicles thanks to its lightweight and environmental advantages. Aluminum boosts fuel economy and absorbs twice the crash energy that mild steel can, improving safety.
Gaden finds itself acting as a bridge between two entities, a foreign repair company and an equipment owner for example, or the individual responsible for guaranteeing a product’s effective repair. “As an operations center for our suppliers, we sometimes offer warranties in their name. Our team must ensure they resolve the problem to respectfully represent our clients,” Roldán says. This is the case for certain companies that require the Mexican team to provide services in Canada and the US as well, homogenizing their service quality across countries. Security guarantees must be equally safe across borders. Having Gaden as a strategic partner often secures business for foreign companies, as access to local service providers can make or break a sale.
“We support clients to make products last longer, creating a permanent partnership with them.” Counting commercial partners on every continent and as repairers of their products, Gaden must ensure the same quality without fail, to protect clients’ reputation. Customer loyalty is the one-stop shop’s reward for making sure products last up to another five years after Gaden services it. Conversely, Roldán recognizes the value of honesty to indicate when a part or machine simply needs replacing. The “repair for less than 50 percent of a new piece” rule must also protect the client from fixing something that would be better value to replace.
As the company already has a working relationship with most automotive players in Mexico, its target going forward is to increase sales percentages. Venturing into new industries is also a possibility. “Tamsa and Alstom are examples of metal- managing companies but as their industry has stalled recently, so have our services for them,” says Roldán. “We may see an increase in our aerospace participation to replace slowing industries but while our diversity gives us stability, automotive continues to be the strongest sector.”
The company has no interest in doubling its efforts. Roldán sees more value in steadily reaching objectives, with care and attention to offer the right service the first time. “Clients come back to us because we offer something extra,” says Roldán, describing the company’s precision and attention to detail, which makes him confident it will always receive positive feedback. This is also thanks to its flexibility when automotive clients require on-demand service.
As soon as the US political landscape stabilizes, Gaden’s development plan will fire up in full force. Irapuato is where Roldán is setting his sights to build an installation to house the two representatives already generating business there. A team for the upcoming workshop in Irapuato and additional staff in Mexico City are probable next steps.