In the automobile industry, manufacturing and shipping the vehicles are only a part of the job. Tight control and customer awareness are absolutely essential to maintain the standards in the heavily competitive industry.
These days, warranty management software gets built on cloud and served as one service. The best part of this is a low investment in software maintenance. Manufacturers now don’t need a team of IT professionals dedicated to every function. Subscription payments keep them running smoothly. Of course, you will need to make sure that your service provider has the capability to execute seven main components to run warranty management efficiently.
7 Main Components to run Warranty Management:
1. Service contract
If you need to schedule services, monitor performance, guarantee revenue, make invoices, reconcile a contract, or manage claims and/or contracts, then you need service contracts.
All functions will work smoothly if you have a huge platform where the solution is structured using the right kind of intelligence. If you look for high-end quality, you need to have integrated data warehousing, agile business rules, and a proper workflow engine.
2. Administration
When you need a system to take care of warranty policies, their rates, service contracts, campaigns, and contracts, a warranty administration in place works best. Whether it is the third-party users, dealers or manufacturers, a proper warranty administration is essential for the critical process related activities. You may need it for managing rules, registering, fault codes, and much more.
3. Supplier recovery
You are actually assembling a lot many parts from different suppliers. To keep track which part or parts are supplied by what supplier, you need to automate supplier recovery. In case there is some malfunction or does not meet your quality expectation, needs repair or even a replacement, the warranty software system should be able to identify each of its components and its respective supplier to recover costs effortlessly.
4. Extended warranty
It takes into consideration how to manage dynamic costing, quotations, promote sales, cancel, reorder, modify and manages claims. This will generate a huge amount of profitabilities, allow competitive price quoting and increase aftermarket revenue conditions to change ROI status. With its unique platform containing features like modifying, cancellation and renewing, quote management, etc., adds to the value chain of the entire process in business.
5. Part ReturnsÂ
This component takes care of reverse logistics like tracking parts, diagnosing parts, return merchandise authorization (RMA), and how to dispose of the worn out parts.
6. Warranty intelligence
You can use dynamic analytics to display warnings about fraud claims and quality issues. With analytics, you can forecast, maintain, and estimate the possible warranty reserves. With performance metrics and dashboards, you can easily comprehend the suppliers, service providers, and dealers and classify into categories based on their pricing, quality, and experience.
7. Claims management
With proper warranty management software, you can pre-authorize, get automated processing, put duplicate or fraudulent monitors, credit, and also submit claims readily. Companies incur huge losses in revenue leakage while processing issues in a warranty claim. Track all the warranties through their entire life-cycle if you want a close-ended system. It will also boost customer satisfaction and reduce service costs.
Dynamic and interactive warranty management software is mandatory to keep processes smooth and be aware of customer requirements. Such a system helps to reduce warranty reserves and costs. Accurate supplier recovery and warranty forecasting capabilities can be designed to help identify warranty frauds ahead of time.
A robust fleet management component should function well with external providers and within internal workshops. With the Tavant system, The administrative and processing cost reduces by almost 20%, and the supplier recovery improves significantly, almost up to 50%.
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 Management Solution services, Mortgage Loan Servicing Software, 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.