Sales and Fulfillment
How can warranty management be made more efficient through automation?
Valued at $2.87 billion in 2019 and touted to reach a whopping $6.24 billion over the next five years, the market for warranty management systems is growing at a CAGR of 13.8%.
This tremendous growth can be attributed to:
- - The increase in competition in the manufacturing domain
- - The rise in customer service expectations and demands
- - The emergence of new technologies and digital solutions
- - The surge in demand for mobile- and cloud-based solutions
Key challenges in warranty claims management
The warranty management process is replete with various kinds of problems and bottlenecks, mainly due to the following reasons:
Data entry errorsDuplicate data and redundancy at the data entry level are common impediments that make data management ineffective.
Inefficient warranty claim processCustomer dissatisfaction is one of the most prominent issues in warranty claims management. Frequently, inadequacies and delays in the claim settlement process lead to irate customers and negative feedback.
Fraudulent claimsOverpayment due to invalid or fake claims and increased warranty costs make the process wasteful and time-consuming.
Ineffective reportingA combination of the above factors and the increased amount of time spent on the claim settlement process, data accumulation, supplier recovery, parts return, etc., cause major delays in the reporting process.
Lack of real-time coordinationWith disparate systems working simultaneously in the absence of real-time information, there is an evident lack of synchronization in the entire warranty claim management process.
The solution: An automated warranty management process
The need of the hour for businesses is a comprehensive warranty claim management process that leverages automation and fixes the above-mentioned issues. Having an automated warranty management process can provide manufacturers and organizations with several benefits.
Improved efficiency and turnaround timesAn automated warranty claims processing system can improve your process efficiency by minimizing manual effort in claim submission, parts return, and payments, thereby reducing TAT (turnaround time) and increasing productivity.
Data accuracyGiven that the process is fully automated and requires little-to-no human intervention, you can be sure of improvements in the accuracy of data and witness a significant reduction in errors and redundancies.
Improved quality and validity of claim dataYour dealer management and warranty management operations will also benefit from the system’s efficiency through better assessment of warranty claims, predictable claims processing, visibility, and transparency.
Reduced warranty costsIncrease your revenues and profitability by cutting down on administration and warranty costs and pay-outs. A robust delivery model (onshore and offshore) reduces claims processing costs. Lower warranty costs and better analytics also help cut down on excess warranty reserves.
Elimination of fraudulent claimsAn automated warranty management system can enable you to screen, detect and successfully weed out fraudulent claims.
Higher customer satisfactionHolistic warranty management techniques lead to improved defect reporting and faster product quality analytics. You can ensure complete transparency and maintain a channel of communication with customers via a user-friendly app. This can help you create, maintain and strengthen your customer relationships, increasing brand loyalty and client satisfaction along the way.
Process automation is the fuel that will drive the future of successful manufacturing companies. For businesses to start addressing pertinent warranty challenges effectively, a reliable warranty management solution is the best bet.
Ideally, manufacturing organizations should invest in an automated, comprehensive, and future-ready solution that offers the perfect blend of key process areas such as:
- Claims management
- Dealer management
- Supplier recovery
- Financial management
- Warranty analytics
After-sales & warranty management solutions
Infosys BPM improves the warranty value chain with a holistic after-sales offering. Our end-to-end warranty management solution helps improve customer satisfaction and reduce operational costs. With a collaborative methodology, this one-stop solution enables manufacturers to streamline their processes and address all their warranty-related issues quickly and efficiently.