unify and streamline_warranty_lifecycle_management

Unify and Streamline Warranty Lifecycle Management

Presented by Mike Stroffolino – Senior Product Manager

Leader in Connected Customer Experience

3/14/2016 2

3/14/2016 3

Presenter: Mike Stroffolino

3/14/2016 4Optimize Warranty Management | m-ize copyright 2016

• Mike has 20+ years’ experience in the warranty industry with SnapOn, 4CS, PTC, ConfigIT and m-ize working on engagements with leading manufactures such as Qoros Automotive, AGCO, Husqvarna, Airbus, Yamaha Motor Company, JCB and CNH

Unify and Streamline Warranty Lifecycle Management

3/14/2016 5

What you will learn during this webinar:

Move beyond transactions to Warranty Lifecycle management

Progress on Warranty Maturity Level

Connect Warranty with Support, Service, Parts, and Quality

Leverage Business rules, work flow, and analytics to streamline warranty

Administer and manage all Warranty functions efficiently

Optimize Warranty Management | m-ize copyright 2016

Why optimize Warranty?

3/14/2016 6

• Reduce Warranty Costs by 15+%

– Increase Supplier recovery to 40-60% of total warranty cost

– Reduce Failure to Fix or Detection to Correction cycle time by 40+%

• Increase Automated Claims processing to > 80%

• Increase service plan sales by 50+%

• Enhance Dealer and Customer Experience (CSI/CEI)


Better engagement with customers, channelpartners, and employees

3/14/2016 7

Get to next level of Warranty maturity


0Adhoc

1Standardized

2Managed

3Integrated

4Optimized

Process Automation

0-20% 21-40% 41-60% 61-80% >80%

Warranty Cost/Sales

> 2% >1.75% >1.5% >1% <1%

(+40% Ind avg) (+20% of Ind avg) (Ind avg)(-20% of Ind

Avg)(-40% Ind Avg)

Org Scope for Warranty

Claims Warranty Quality Mfg + Supplier Ext Enterprise

Metrics & Analytics

Excel files Canned Reports Analytics, KPI Early warningPredctive analytics

F2F Cycle time > 12 Months > 9 months > 6 months > 3 months Real time

Current State

Optimize Warranty Management

Source: IDC Manufacturing Insights

Key Success Factors


Industry Best practices to optimize Warranty Management1

Enable Warranty organizations with the Next Generation Warranty Lifecycle management Software

2


http://bit.ly/1QEWNBg

Optimize Warranty with Best Practices


1. Manage Warranty entitlements2. Automate Claims validation & processing3. Standardize Failure coding4. Reduce and Automate Parts Returns5. Increase Supplier participation and recovery6. Detect and Correct product quality issues7. Increase Service Plan Sales8. Create a consolidated global Warranty platform 9. Unify Warranty Lifecycle 10. Optimize Warranty Management

Download 10 Best Practices

http://info.m-ize.com/10-best-practices-to-optimize-warranty-management


• Better compliance to warranty policies and reimbursement terms

• Improve consistency and standardization of warranty data

• Ease of management and tracking

BENEFITS TO BRANDS

• Manage policies, terms and conditions for all claim types

• Warranty eligibility Checks

• Check for Campaigns (Recalls)

• Manage and validate Standard Repair Times (SRT)

• Identify right parts from Parts catalog

• Consistent Failure coding – Causal part, Component, Complaint, Cause and Corrective action

WARRANTY ENTITLEMENTS CAPABILITES

Warranty Entitlements: Manage & Track

m-Warranty


Automate Claims Validation & Processing

m-Warranty: Enhanced Claim Process


• Scan Product Serial#, Parts

• Integration with Dealer Business Systems to feed Repair Orders eligible for warranty

• Collect data from diagnostic tools and connected products

• Easily attach pictures from mobile devices with camera


• Reduces warranty processing costs and cycle time by streamlining processes

• Improves claim accuracy and compliance

• Increase Claim auto approval and adjudication

BENEFITS TO BRANDS

• Online Claims entry, submission, and adjudication

• Streamlines and automates all claims and warranty processes

• Manage standard, extended, parts, and pre-owned warranties; campaigns/recalls and goodwill

• Validate entitlements, failure coding, parts, labor and other charges

• Incorporates data feeds from mobile and diagnostic devices directly into claims

CLAIMS PROCESSING CAPABILITES

Claims Processing: Efficient & Accurate

m-Warranty


Automate Claims validation & processing

Standardize Failure coding

3/14/2016 15

Best Practices in Warranty Management | m-ize copyright 2016Pareto by Failure codes Problem detection cycle time

Warranty Contribution rate = Attributed warranty cost/CPU

Standardize failure coding and reporting on claims based on 5Cs – Causal Part, Component code, Complaint, Cause and Corrective Action.

• Standardize failure codes across all regions, product lines, manufacturing facilities and suppliers

• Link Failure Codes to Product models and cross reference codes to make it easier for servicers and technicians to classify the repair

• Link Parts, Standard Repair Times (SRT), coverages and failure coding to Product Bill of Material (BOM) to improve consistency

• Improved consistency and data accuracyin claims

• Ability to analyze and identify recurringfailures early across global platforms

IMPLEMENTATION BENEFITS

Best Practices in Warranty Management | m-ize copyright 2016


• Improve quality and supplier recovery through timely part returns

• Reduce manual efforts in generation, tracking and shipping returns

• Reduce the returns through better information and claim validations

BENEFITS TO BRANDS

• RMA generated based on return requirements

• Integrate with Carriers (e.g. Fedex, UPS) for RMA, pickup and shipment tracking

• RMA accessible from mobile devices

• Capture part inspection results

PARTS RETURN CAPABILITES

Parts Return: Efficient & Accurate

m-Parts


Reduce and Automate Parts Returns


• Increase supplier participation and recovery of warranty costs

• Automated and efficient supplier recovery process

• Drive supplier collaboration and quality through shared insights

BENEFITS TO BRANDS

• Auto generate suppliers claims based on supplier terms and agreement

• Web services or file based integration with Suppliers to send claims and receive supplier responses

• Support for Real time supplier pre-approval, RMA, claim process

• Insights on supplier recovery, quality, and performance

SUPPLIER RECOVERY CAPABILITES

Supplier Recovery: Increase Recovery

m-Warranty

Detect and Correct Quality Product Issues


Utilize Warranty analytics to:

• Improve visibility and access to warranty analytics for all stakeholders including Manufacturing, Engineering, Quality and Supplier management

• Use industry standard KPI or metrics to identify emerging issues early

• Identify Root cause for failures by utilizing multi-dimensional analysis and drilling-down to contributing factors

• Use advanced analytics and data mining to generate alerts and early warning


Detect and Correct Quality Product Issues


• Ease of inspection with tablet, mobile or web software

• Enhance profitability by saving on returns, warranty and repair costs

• Improve perception of brand quality and lower risk of product failures

BENEFITS TO BRANDS

• Manage pre-delivery and post-delivery inspections

• Deliver specific templates, checklists and instruction videos

• Integrate with registration, warranty and service systems

• Analyze inspection data to improve product quality

INSPECTION CAPABILITES

Inspection: Collect & Analyze Inspection Data

m-Inspections

Service Plans: Increase Attach Rates


• Increases attach and renewal rates

• Better service experience

• Lower acquisition and support costs

BENEFITS TO BRANDS

• Connect and present offerings through retail, web, mobile, and social channels

• Offer plans at relevant touchpoints throughout the customer lifecycle

• Tailor plan offerings based on individual consumer profiles, product ownership, and context

• Gain insights into customer purchase patterns and profitability of service plans

INSPECTION CAPABILITES

m-Plans

Integrated Warranty Lifecycle Management


Warranty Lifecycle Management


Unified Service Experience


Optimize Warranty Management

3/14/2016 26Best Practices in Warranty Management | m-ize copyright 2016

Setup Continuous Improvement program to optimize warranty management and create competitive advantage by performing above Industry Benchmarks

• Conduct relevant assessment and implement a continuous improvement program• Identify Key metrics (KPI) and Benchmark against the industry• Capture and analyze product and warranty data across the install base and track Warranty

budgets, accruals and expenses • Set goals for Warranty CPU, Warranty cost as % of Sales, Frequency of failures• Expand the scope of organization from warranty Department to Quality, Engineering, Suppliers,

Dealer or service network• Provide the critical service and product insights needed to improve service and product outcomes

to customers• Capture Feedback from Dealers and Customers to identify and address satisfaction issues (VoC)

• Best of Class Warrantyperformance in the industry

• Optimal Warranty Costs• Competitive differentiation

through better products, service and quality

IMPLEMENTATION BENEFITS

Warranty performance = CPU/Industry average

Efficiency = Process Cost per Unit/Industry average

CSI = Customer Sat Index

NPS = Net Promoter Score

Intelligent: Analytical decision management

3/14/2016 27

Check claims against dynamic aggregated values

• Check total warranty cost against CPU (Cost Per unit)

• Check claim count against average claim frequency for the product category

• Check claim cost, # of parts etc.., against averages

• Assign Claim risk score

• Summarized profiles for Product, Customer, Dealer, Parts


Summary: Optimize Warranty


Reduce warranty costs

• Improve Product Quality• Improve Supplier quality, performance

• Enforce Warranty compliance• Reduce excess and fraudulent claims

Improve the effectiveness and efficiency of warranty management processes

• Streamline or Automate warranty processes• Improve the warranty operations

• Reduce cycle time from detection to correction of product issues

Generate new revenue and profits

• Increase service plan revenues• Differentiate the company’s offerings in warranty

and service plans• Revenue growth from satisfied and loyal customers

Enhance Dealer and Customer Satisfaction

• Simplify Registration, Claim, Return processes• Increase value to the customer

• Get paid for claims faster

Steps to Transform Warranty Management

293/14/2016

Mission: Optimize Warranty Management

MapAssess all warranty processes and create a road map to unify and stream warranty lifecycle management

ModelROI Model to reduce warranty costs and improve service revenues & profitability

MobilizeImplement m-Warranty to streamline Registrations, Claims, Parts Return, Supplier Recovery and Warranty Analytics

MeasureEstablish a metrics and benchmarking program to drive improvements in warranty, quality and customer experience


3/14/201631

Contact us 8610 Hidden River Parkway Suite 200 Tampa, FL 33637

www.m-ize.com

+1 813-971-2666

[email protected]

Thank you