Many companies still rely on emails, spreadsheets, or custom warranty systems developed long time ago to manage warranty. These warranty systems are inefficient in managing warranty and inadequate to meet the needs of the business to reduce warranty costs and improve product quality.
Symptoms of Obsolete Warranty System
Some of the common symptoms that indicate you have an obsolete or ineffective warranty system are:
- Your Warranty claims costs are more than they should be, but you cannot get the reports or analytics to determine the contributing factors or root cause of the product quality issue
- You are manually reviewing most of the claims requiring more staff as your product sales increase
- Your dealer or service network is complaining about the time it takes to receive claim payments or how hard it is to deal with your warranty system
- You have to wait weeks or months to implement any changes to existing legacy warranty system
- You have multiple warranty systems within the company
Making Business Case for new Warranty Software
Even if you determine your existing warranty system is obsolete and needs to be replaced, building a business case based on quantified return on investment (ROI) is critical to get the needed approvals. You can realize tangible ROI from new warranty software with:
- Streamlined warranty processes that reduce staff costs
- Reduction in Warranty costs by enforcing warranty policies and by reducing warranty waste and fraud
- Reduce cycle time from Detection to correction to improve product quality
- Increased supplier recovery and improved supplier collaboration
You should build a business case based on improving key metrics such as Total Warranty Cost, Warranty cost as a percentage of sales, Supplier Recovery percentage, Warranty administration costs, and cycle time for detection to correction.
Key capabilities to look for in new Warranty software
For you to have a consolidated warranty system to manage entire warranty life cycle globally, you need to make sure the new warranty software is meeting these key criteria:
- Simple, Easy to Use and Accessible from the web and mobile devices
- Ability to streamline and automate all warranty processes including Registration, Policy Management, Service Plans, Claim Processing, Parts Return, Supplier Recovery, and Warranty Analysis
- Supports all claim types including Standard Warranty, Extended Warranty, Service Campaigns, Goodwill, Parts Warranty, and Pre-owned
- Supports all roles and stakeholders including Warranty management, Distributors, Dealers, Suppliers, Engineering, Quality, and Finance
- Ability to run reports and analyze warranty data to track warranty metrics, emerging quality issues, warranty reserves or accruals, and supplier performance
- Flexibility to easily manage workflows, business rules, warranty policies
Cloud-based Warranty Software
You now have an option to implement a new warranty software quickly and cost effectively with a simple subscription model in Cloud. You don't need a huge upfront capital investment for hardware or software licenses and have a team of people to customize or implement the warranty system. Cloud-based warranty system also provides an opportunity for dealers, OEM, and suppliers to be on same warranty system and access the functionality based on their role.
Request a Demo to learn how you can optimize warranty management.
Eric Marlan, a Senior Product Manager with Mize, manages the product roadmap for the Mize Connected Customer Experience platform and Smart Blox modules focused on the areas of Registration, Warranty, Parts, Service Plans, Support, Field Service, and Knowledge.