How to ensure that Benefits of Warranty Technology are felt across the Value Chain?
Is the profit you earned for every vehicle rapidly
diminishing? Are you continuously worried about warranty costs increasing? Are
you stuck with lack of information about parts failures and engineering
quality?
These are just a few problems an automotive manufacturer faces. They arise from inefficient and opaque warranty management throughout the enterprise.
The impact of cost on business is huge. From the early 2000s,
annual warranty expenses in the US automotive industry has shot up from about
$10 billion to above $14 billion, but annual sales remain stagnant. While the
average profit made from a vehicle is $200, the average warranty cost for the
same vehicle is $800. (Source:https://www.infosys.com/industries/automotive/white-papers/Documents/liability-to-competitive-advantage.pdf)
Currently, warranty in the automotive industry involves
legacy systems and technologies. The automation process does not collaborate
with the value chain entirely. It cannot use the rich information that claims
contain. Moreover, field data needs serious refurbishing.
A common platform for warranty processes and operations can
work towards:
- Fixing the missing links in manufacturing and customer service
- Maintaining a communication link between all partners in such a way that the entire value chain can solve problems collaboratively
- Using technology to effectively leverage field data for deeper understanding of the manufacturing process, quality, and mechanics
- Outsourcing some activities and maintaining the sync with other activities being handled by the company itself
- Developing more competitive, technological abilities and better know how of processes. Quality departments need to identify root causes and arriving at solutions through this process will ensure better outcomes.
All-inclusive
If a warranty management system covers processes in an
integrated way, it will be of use to everyone in the value chain. The objective
is to use all possible kinds of information from field and claims-related data.
Common point of connect
While working in a firm, each of the individual departments
should have a common point of contact, where all data gets recorded. The
contact point has to be linked in such a way that not only all the departments
within the company, but, its partners too can access it at any point of requirement.
Technology
All the approach to warranty claims should be able to use
technology and acquire maximum benefits from it. Once you understand the
technology well and derive new elements and processes, they can be used in the
company to build better systems. These elements can be designed specifically
for building certain precise organizational facilities.
A holistic solution to warranty management can only be
achieved if there is a complete balance between analytics, automation, and how
manual claims are processed. The means of achieving it is through amalgamation
of Enterprise Resource Planning (ERP), Early Warning System (EWS), and Business
Process Outsourcing (BPO); all of them based on advanced analytics. A complete
model can bring the business tangible benefits like reduction of up to 10% in
warranty expenses, 30% in total processing cost, 35% in total costs of IT
ownership, and huge cost savings with quality insights for EWS.
Author Author:
Preethi vagadia is a business architect worked in Mortgage
and warranty management department with top notch companies and has over 8
years of experience in Warranty Administration management, Warranty Claim
Management services, warranty software solutions etc. She has also worked in several process
improvement projects involving multi-national teams for global customers in
warranty management and mortgage.
Tags: Why sustainability is important for business, how do
sustainability practices benefit businesses, Warranty Administration
management, Benefits of Warranty Technology, Warranty Technology, Blogger tips,
Online Tips, SEO Updates
Post a Comment