This month’s webinar, hosted by Mize, Inc. in partnership with Tech Mahindra, brought together experts in the automotive and warranty management industries to discuss best practices in streamlining supplier warranty management. Our presenters, including Michael Blumberg, Chief Marketing Officer of Mize, Michael Roberts, President of MR Insights, and Eric Marlan, Senior Product Manager of Mize, led stimulating discussions about the current state of supplier warranty management, and what strategies must be implemented to improve quality for all stakeholders.
Supplier Survey Warrants a Better Solution
According to Blumberg’s Automotive Supplier Warranty Management Survey, suppliers need a new, streamlined warranty management system.
The survey, conducted by Mize in May 2019, revealed top insights about the current practices and challenges that suppliers face in the automotive industry when it comes to managing warranty claims. With responses from 23 suppliers, the survey results reflect a diverse demographic of suppliers. Results indicated that:
- Many work with 10 or more OEMs
- All parts of the vehicle are represented by their responses
- About half are publicly held
- Most generate over $1 billion in annual sales
Because most of the suppliers have high annual sales, we can infer that their claimed amounts are also large, lending us credible insights into supplier warranty management.
For example, most respondents hold ISO/TS 16949 certification, a specification which aims to prevent defects and reduce variation and waste in the automotive industry supply chain. Yet, more than half of the respondents still experience a percentage of parts resulting in a warranty claims, with over half of companies experiencing over 10,000 claims annually.
During the claims process, most suppliers rarely receive the physical corresponding part for the claim. Instead, 80% of suppliers say they would rather receive photos as they can inform the supplier about a part defect quicker than the physical part can be shipped.
Besides photos, suppliers desire other data such as telematics data, technical hotline call data, and prior approval/pre-authorization data¾all which aid in warranty claim analysis.
Additionally, 80% of suppliers find it useful to be able to visit or call the dealership for additional information and clarification about a claim.
Unfortunately, current practices in warranty claim analysis prove challenging. For example, to analyze warranty claims data today, suppliers are using multiple OEM portals or their own in-house tools/Excel sheets for reporting, making it difficult and tedious to analyze claims data to improve product quality.
Not only that, but because 1/5 of parts contain no coding (diagnostic data), and physical parts are rarely returned, judgements must be made on data alone which leads to high variability.
These survey results demonstrate there is an opportunity for simplification and standardization via a streamlined warranty management system.
Collaboration is Key
To ease warranty management, Roberts suggests that a good warranty management system would automate parts of the claim data, audit all work, and support digital inspection.
Building off the survey results, his successful strategies for improving quality include moving past Excel, moving beyond warranty data, and moving to a warranty management process.
Roberts explains that, while the warranty claim has lots of good information, it inherently contains a lack of accuracy and fullness¾because data is human entered¾and relies on old data¾because entering claims information takes time.
Not only that, but suppliers could be using several other data sources that are generated during a typical repair flow, such as:
- Telematics data
- Repair Order / Write–up Info
- Prior Approval
- Tech Hotline
- Photos and Files
- Social Media
To get this data in a timely manner, Roberts suggests the OEM and supplier work together. Typically, this happens through the OEM portal¾but what if a supplier works with multiple OEMs?
Suppliers must log into a plethora of portals to pull down the data, extract the important information, and download/export it for analysis. Clearly, this takes a lot of time and effort, especially for those suppliers who work with 10 or more OEMs!
Instead, Roberts proposes that OEMs and suppliers collaborate over a common data repository with a complete analytical suite of tools.
Supplier Warranty Management System
Marlan adds that suppliers are pressured to take financial responsibility for warranty costs, rather than focus on collaborating to improve quality.
Not only that, but suppliers are bogged down with multiple OEM portals and ad-hoc, inefficient processes to analyze warranty data.
What the automotive industry could benefit from, as we have seen from Blumberg and Roberts, is a solution that enables Suppliers and OEMs to exchange warranty data across a shared platform. This platform would allow both parties to collaborate on quality improvement and corrective action projects, leading to improved customer satisfaction.
In the proposed Mize CX solution, Marlan demonstrates how data is categorized into respective modules, like warranty, returns, and quality, which share metadata to streamline the claims process. Not only does this solution standardize the claims process, it also saves time by consolidating and automating OEM, Supplier, Dealer, and Customer data.
Because this platform contains all shared data in one place, it produces powerful insights and analytics, enabling suppliers to improve quality and take corrective action.
As seen from our presenters Michael Blumberg, Michael Roberts, and Eric Marlan, there is an opportunity for suppliers to improve quality by adopting a solution that simplifies and streamlines the warranty management process.
And, to learn more about the Mize CX solution, request a demo & try it free for 30 days click here.
Thank you for attending this week’s Webinar and we look forward to your participation in next month’s presentation!