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Parting ways: Small components lead to big business

by Keith Loria, Reporter | October 18, 2010

“We have developed significant relationships with independent service companies throughout the world who rely on us for spare parts,” says Jason Crawford, president of Block Imaging International. “There are many challenges to this business, and it requires a higher degree of trust than you might expect. A parts company must have a clear understanding of import/export requirements and documentation. The provider must also be able to work with much longer exchange cycles since it will take two or three times longer to get exchange parts back.”

Deals are also not always governed by U.S. laws, so if someone doesn’t uphold his end of the bargain, a company could lose out. But for most, it’s worth the risk.

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“The overseas parts market is viable, but it comes with greater risks and challenges,” says Kramer. “Getting exchange parts takes longer and often ends up not happening at all, so any companies evaluating international business should be ready for a whole new array of challenges in logistics, finances and time required.”

Block Imaging engineer
pulls board from
stock for customer order.



A few years ago, the trend was for equipment and service providers to enter the parts business. Because of their technical background, the independent service organizations know how to handle, test, store and ship parts and they often maintain a significant inventory.

An emerging trend becomes part of a problem
One trend industry experts are starting to note in the parts sector is the selling of entire subsystems rather than just a particular component.

“In my unique position where I have close contact with the customers and I also have close contact with the brokers and friends who run parts companies, what I am seeing are people who have typically been [with] a service company move into parts,” says Larry Knight, operations partner of Altima Diagnostic Imaging Solutions, LLC. “When they get a taste of the revenue-selling a whole cabinet instead of selling a single part out of the cabinet it leaves them in a position where they are not motivated the next time to assist the end-user to getting the problem resolved with the minimum number of parts.”