Which benefits offer professional Warranty Management Systems?
Standardisation enables mid-term cost savings for overheads, as well as improving warranty handling and reducing the pressure placed on employees. Warranty Management Systems also enable greater efficiency in the supply and use of information, making it available to both the manufacturer and the customer at any time. This enables the subsequent reduction of rework costs and the elimination of unnecessary waiting times. Warranty Management Systems increase warranty process transparency, thus affording suppliers a better negotiating position.
Warranty Management Software enables the standardization of warranty processes, better communication between supplier companies and OEMs and an overall improvement in process transparency.They serve as an integrated platform between the supplier and the OEM. In terms of content, Warranty Management Systems provide both manufacturers and customers alike with all relevant key figures, evaluations, trends and reports. Although a small number of innovative, open-minded supplier companies already use their own Warranty Management Systems with integrated customer interfaces, the majority of companies still focus on the customer, working without an integrated platform and with several customer systems at the same time (see fig. 2). This renders process standardization impossible. Transparency remains equally inachievable and also precludes the use of employee learning effects.
Warranty Management describes the warranty case handling process between suppliers, OEMs and end customers. This process often includes the complaint, assessment, reporting and negotiating processes and, where applicable, remuneration of the goods under scrutiny (usually based on a technical factor). Despite being long underestimated, the importance of Warranty Management for the company as a whole is now finally being acknowledged by far-sighted executive managers and directors of OEMs and suppliers. On average, European OEMs accrue warranty reserves to the sum of 2-6% of their turnover – a comparatively large proportion (see fig. 1). The resulting high volumes reflect the financial means that could be released by a relocation of warranty obligations.
The development of warranty provisions of European OEMs relative to their annual revenue
Figure 1: „The development of warranty provisions of European OEMs relative to their annual revenue.”; Source: Warranty Week 07/2011
Share of the underlying communication platform within the warranty management process
Figure2: „Share of the underlying communication platform within the warranty management process.”; Source: Study confluentes e.V.