Warranty Administration and Supplier Recovery

Warranty Administration

A Harris Interactive report mentions something encouraging for warranty management personnel to adopt cloud-based consumer app technology. It says 85% customers are likely not to shop with you again if the return process is not convenient. Even more interestingly, the report says 95% of customers are likely to shop with you again if the returns process is convenient.

Once a claim is validated and the product goes into service mode, there may be a manual assessment, pickup, parts order, transport, fixing, and delivery. Whether your offer includes free pickup and delivery, or whether you have local service units, the entire process may not all be in your hands.

Supplier recovery and other issues

A defect in the aftermarket can arise from a manufacturing failure or a malfunctioning part. In the latter case, there is little the manufacturing company can do as part of the salvage operation. Most of the ability to restore goodwill lies with the supplier. However, the OEM can help indirectly.

Prompt service used to be a rarity because of several reasons:

  • Lack of preparedness on the part of the supplier to deal with customer issues
  • Bottlenecks in identifying the accountable party in the case of a failure (is it the supplier or some other party?)
  • Global service units would be unprepared to deliver complex service routines in short turnarounds. The case becomes critical for the OEM especially if they had to connect the consumer directly with the supplier
  • Lack of clarity and detail about the defect’s information from the user or end consumer

Let us see how each of them can be removed easily, i.e., without causing much of an interruption, and yes, inexpensively.

Lack of preparedness (supplier)

If you current claims database can be integrated with a cloud analytics system, you can identify key frequencies and share the results with your supplier. It will take a customized interface, can be implemented for mobiles, and may also be based also on your real-time data. This will elevate the supplier’s understanding of needs in the aftermarket. Based on whether a certain part shows demand on a higher level, suppliers can keep their resources ready. This means cutting the supplier recovery turnaround of a particular claim.

Identification of the problem

A data-intensive system can be used to identify root cause of a defect. The analytics in such a system would be so accurate that suppliers could not argue in their own favor to avoid liability. This is one of the surest possible ways to speed up recovery operations and improve an OEM’s reverse logistics.

Routing and service units

A part, which has to arrive from the supplier and be fixed to the product, comes with no baggage, except for that of transport and storage logistics. Support and service providers in that context can also be integrated with the OEM to figure out best routes in real time and select the most cost-effective warehouse services. This can be ensured with a cloud-based integrated system. With a global tracking technology, used in conjunction with such a module, OEMs can track their goods and inform their customers about the same.

Clarity about the defect

In the old days, manufacturing companies would be left to deal with a customer’s issue in an onerous manner. While the customer is not expected to diagnose the problem successfully, a service app should provide the option of describing the defect. From that data, your analytics should be able to diagnose automatically why the event of performance failure was caused. This is already an industry practice.

These kinds of measures speed up the recovery and reverse logistics process very easily. While unsteady commodity prices have played a defining role this decade, manufacturers have been able to live up to customer expectations, and in some cases, even improve it because of better visibility into salvage operations.

Shwetha Singh, as a media & entertainment blogger has more than 5 years of experience in writing blog posts that gives great insights to readers about the current trends in media & entertainment blogger sector. Currently she is working in Tavant Technologies which is known as best IT solutions and service provider and recognized globally for its innovative solutions.

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