Manufacturing

Case Studies

Warranty Process and Claims Management for a Leading Construction and Mining Equipment Manufacturer


The Client

A Fortune 50 and a Fortune 500 manufacturer of construction and mining equipment, diesel and natural/ industrial gas engines, and turbines. The company is also a leader in construction, transportation, mining, forestry, energy, logistics, electronics, financing, and electric power generation equipment.

Business Need

Dealer payments managed by employees lacked clear guidelines for similar products. All regions were supported by a centralized team. The company wanted dealer payment processes to be in line with warranty coverage and allowances.

Challenges
  • Warranty management was primarily restricted to in-house employees as it involved revenue and cost to the client
  • Analyst expertise was focused more towards engineering-based trainees, which resulted in longer training periods
  • Infosys did not have prior experience in handling warranty claims for a manufacturing client
Our Solution

Warranty and claims management processes were streamlined.

  • Operating model restructured by moving work from region-specific to product-specific
  • Leveraged knowledge gained from issues in downstream processes to improve service delivery and document a globalized process
  • Managed claims documentation, approval and disbursement
  • Incoming warranty claims screened for completeness and accuracy
  • Contested claims managed by interacting with stakeholders
  • Constant feedback to client on educating dealers about process requirements and change implementations
  • Complete responsibility taken up to check variances from earlier repairs, duplicate payments and late submissions for servicing and repairs due to workmanship errors or material defects – only for claims below 5K value
  • Provided recommendations to improve and streamline process variations for same product in different regions

Benefits
  • Reduction in dealer payment timelines and overall claim closure time from 15 days to 12 days and subsequently to less than 10 days due to faster resolution
  • Transaction-based pricing with linkages to quality and TAT right from the onset
  • Reduction in overall ageing process by reducing the batch run schedule and introducing the SAS model for failure history tracking
  • Standardization of processes across the globe with removal of region wise process variations
  • One-stop-shop for all warranty related issues operating simultaneously across the world
  • Reduction on overall claim closure time with removal of delaying processes such as claim returns and change of batch

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