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Five Improvements Required for Warranty Revenue in Vehicle Manufacturing

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Vehicle problems arise out of parts manufactured either by the automobile company or a parts supplier. The process of warranty inspection involves a validation process and communication protocols. The manufacturer should be able to validate, or turn down the warranty claim, and revert to the distributor with the right message and reasoning. And, at the same time, ensure customer satisfaction so that no complaints ensue.

Transparency and turnarounds are the key factors behind customer satisfaction. Besides offering user-friendly interfaces for different players in the value chain, technology can save time and costs with real-time communication and a rules-based claims validation module. The latest systems also allow manufacturers to deal with supplier recoveries and shipment within short turnarounds in an inexpensive way.

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Simply improve these processes for better warranty revenue:

  1. Validation – When the customer routes a warranty claim (through a dealer and/or distributor) to the automobile manufacturer, it should determine the liability. In order for the automobile company to avoid a long turnaround, it needs an integrated cloud system to receive the claim details, identify the cause, notify the liable party, and revert to the customer, all within minutes.
  2. Service dispatch – Once the manufacturer is able to verify the claim and prepare a service team for repairs, the step involves shipment of parts and/or the vehicle. The service teams require mobile devices to access information, and do the required job. The service team should also be able update the manufacturer on the possibility of misuse, if any, and get further directions through the integrated mobile interface.
  3. Parts tracking – If required, the manufacturer should track the liable supplier for parts replacement, and inform the right supplier personnel on the issue. Technology should enable accurate identification with secure user IDs, as well as process and product IDs. Identifying the nature of the customer’s problem becomes easy with a technology which uses claims history to help identify fraudulent claims.
  4. Communication – The service team has to resolve the problem within quick turnarounds, and allow the KPI data to be appropriately filled. For this, the manufacturer should be able to measure customer satisfaction accurately. Issues like minor delays and dissatisfactory results should be taken into account through a real-time reporting system.
  5. Continuous improvement – Repair costs are difficult to control on the ground, and manufacturing improvements over the future are a must. Software technology can develop a claims history to let manufacturers identify areas of improvement in the manufacturing phase. This will enhance brand value and improve reliability over the long run.

Vehicle manufacturers must not only check for technical issues related to the customer’s problem, but ensure that replacement and repair services are dispatched cost and time-effectively. That is when customers will stop thinking about going to the local mechanic to avoid the warranty rigmarole.

Technology can make quick communication a completely transparent process. With globally distributed service stations of manufacturing companies, what’s required is a solution that uses GPS to identify cost-effective ways of dispatching services, and a transparent system that allows the customer to know everything from claim to billing.

Technological support for such purposes requires integration over cloud: be it for the dealer, the special-parts supplier, the distributor, or the automobile warranty unit. As the need for improvement in such a vast value chain is bound to be felt, agile software development is a highly suitable practice for vehicle warranty management.

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