Mize recently hosted a workshop at the ENG Automotive Warranty Summit USA titled Enabling suppliers to manage claims, returns, and quality for all OEMs. Ashok Kartham, Mize’s Founder and CEO, kicked off the workshop by posing the following question: What is one key factor that drives warranty performance improvement?”. Of course, warranty performance is broad, consisting many measures such as claim automation rate, supplier recovery rate, cycle time for Detection-to-Correction, and related factors such as COPQ. As such, the question is not easily answered. However, the experts at Mize’s have reached a conclusion is that the key factor is the “Connectedness” of the warranty process.
This begs the next question: What is a “connected” service [warranty] and how can it be delivered?”
What is Connected Service?
In the emerging world of connectivity, let us also imagine what a “connected warranty process” looks like within the Automotive Industry:
- A modern vehicle has 70 or more ECUs, and the number of connected devices and systems on the vehicles grows each year. The software connects to onboard diagnostics locally using API, and with growing frequency, through IoT.
- Telematics on the vehicle can alert OEMs and customers to what is going to fail, and once the error codes is known, the required parts based on historical claim and service data can be made available. The appropriate corrective action/repair can be identified based on similar data and the service technician can also obtain access to service history, parts catalogs, and anyting else they need to provide a corrective solution. The technician can also capture pictures from a mobile phone to add to a work order or to a claim directly to record the work that will be done.
- While all this progress takes place, Dealers can connect to the OEM using Live Video for remote inspection and collaboration. As a result, dealers obtain fast pre-approvals, and the OEM’s support teams can walk the technician through the repair procedure step-by-step using Augmented Reality. This means that dealers nolong have to get pre-approvals for repair or ask the customer to wait or come back later.
- In addition, by implementing a unified, web-based, supplier warranty management portal, suppliers can aggregate claims data, streamline returns, analyze warranty data to improve quality internally, and incorporate improvements into future manufacture and deliveries of parts, all based on the feedback from the connected vehicle and dealer.
OEMs and their dealers and tier suppliers need to start developing “Warranty Management Optimization Roadmap” in order to this future state of a “connected warranty process” . The mission at Mize is to enable automotive manufacturers to deliver the connected service experience by connecting products, customers, dealers, OEMs, suppliers, processes, and data.
As part the workshop, participants from 14 Original Equipment (OE) Manufactureres and 9 Tier Suppliers where asked to evaluate the level of connection between stakeholders (e.g., OEs, Supplier, and Dealers) on 12 different touchpoints involved in the warranty process. A scale of 1-5 was utilized where 1 = Manual (capture data), 2 = Store and Foreward (Transmit data, import/export), 3 = Integrated (connectors, APIs), 4 = Platfom (connect all data & users), and 5 = Automated (IoT, analytics, AI). The touchpoints included BOM, PDI, Register, Warranty, Schedule, Check-in, Repair, Claim, RMA, Recovery, Analysis, and Qaulity.
The general consensus among workshop participates was that the level of connection is limited or lacking in the areas of PDI and Scheduling at the OEM and Dealer level of the supply chain. However, the Tier suppliers commented that they feel the need for more support from the OEM’s for clarity on the applicable part number and what is being claimed. In common between the OEMs and parts suppliers was that the Quality department in their respective organizations was rarely connected well enough to the Warranty operation. The participants also recognize the need to move from a stand-alone departmental system perspective to a shared platform.
In general, participants provided scores between 2 and 4 on the touchpoints under consideration with an average participant total score of 30 across all 12 touchpoints. However, several attendees had hopes to reach a score of 5 for the future for specific touchpoints, taking them to totals of 50 or more on their Warranty Management Optimization Roadmap.
Experiences both inside and outside of the workshop show that there is great opportunity to optimize warranty management related processes throughout the warranty chain and supply chain. View our solutions at https://m-ize.com/solutions/warranty-management/ or contact us at email@example.com for a free assessment, live demo, or to discuss use cases that will put your company on the road to greater connectivity.