7 Functional Benefits of a Warranty Management System

Markets have become deeply customer focused.

Manufacturing and shipping products is only half the job. An equal half lies in warranty management and services throughout the product’s lifetime.

Tight control over operations and holistic awareness of customer events are essential to perform at par with popular manufacturing companies.

Read More About Benefits of a Warranty Management System.

Warranty Management System

Modern warranty management solutions are built on cloud and served as a service. The advantage is you won’t have to invest much in software or maintain an IT team to manage the system. Instead, you can pay a subscription and rest assured that the system is always up and running. But that alone will not suffice. You need to ensure that your service provider is capable of all the seven key components for effective warranty management:

  • Warranty Administration
  • Extended Warranty
  • Warranty Intelligence
  • Claims Management
  • Parts Return
  • Supplier Recovery
  • Service Contract

Warranty Administration takes care of rates, policies, contracts, warranty registrations, and campaigns.

Extended Warrantytakes care of functions like dynamic pricing, sales promotions, quotations management, modifications, cancellations, renewals, and claims management.

Warranty Intelligence makes use of dynamic analytics and triggers early warnings about quality issues and fraudulent claims. Analytics helps estimate, forecast, and maintain optimum warranty reserves. The dashboards and performance metrics make it easy to rate and understand the whole chain of suppliers, dealers, and service providers by considering their quality, cost, and reliability.

Claims Managementfacilitates submission of claims, pre-authorization, automated processing, monitoring for frauds and duplicates, adjudication, and crediting.

Parts Return takes care of the reverse logistics including RMA (return merchandize authorization), parts tracking, parts diagnostics, and disposition.

Supplier Recovery helps track the entire gamut of suppliers and the parts each has supplied. In the event of a quality issue, malfunction, replacement, or repair, the system can map each component to its supplier and recover costs quickly and effortlessly.

Service Contract takes care of scheduling services, invoicing, revenue recognition, performance visibility, claims management, contract management, and contract reconciliation.

All the seven functions can work cohesively and smoothly, only if the solution is built on a robust platform with the right intelligence. Dynamic business rules, workflow engine, and data warehouse integration are critical to quality and performance.

A robust CRM platform like Salesforce.com has many advantages on this front. Although CRM and warranty management have traditionally been separate functions, there is a profound link between the two. CRM software and services are an essential to call-center operations, which are critical to warranty management.

CRM software can naturally keep track of call records and basic warranty information like validity periods. Adding functionalities like analytics, forecasting, performance metrics, business rules engine, and parts tracking to the cloud-based networking site makes all the more sense for enterprises already using Salesforce.

Effective Warranty Management lifecycle and real-time customer engagement require highly intelligent or agile warranty management systems. Such a system can help you reduce warranty costs and reserves. It can also speed up supplier recovery with accuracy, enhance warranty forecasting accuracy, and predict suspicious claims such as warranty frauds.