Many Warranty Managers that we at Mize work with often share that field service operations are the most labor-intensive part of their warranty process and are a significant cost driver. The primary reason for this extra cost is due to the field service not being fully integrated into the overall digital warranty processing systems.
Connected Customer Experience
If you are a durable goods manufacturer, then it is likely that your company still operates a legacy system for warranty management. Legacy systems are costly to maintain and modify, since there are very few people inside the organization who remember how the system works Your company must employ people with specialized knowledge of the system, and if they leave the organization, their expertise walks out the door with them.
Recently, Mize hosted a webinar titled Reduce Warranty Costs by 15% in the First Year. The webinar featured a case study by Vance Thomas, Corporate Warranty Manager of LP Corporation. Mr. Thomas’ presentation addressed challenges his company faced with respect to utilizing a legacy warranty management system to support products sold within the Building Products industry. He also discussed the transformational journey his company took to replace the legacy system with a new solution from Mize which resulted in a 15% reduction in warranty claims processing costs with the first year.
If you work for a global manufacturer of durable equipment, then it is likely that your company still operates a legacy system for warranty management. Legacy systems are costly to maintain and modify. Since there are very few people inside the organization who remember how the system works, your company must employ people with specialized knowledge of the system. At issue, these people are usually focused only on the task of system maintenance and may provide little value to the company beyond this task.
Although technology - connectivity, analytics, sensors - has changed a lot and enabled OEMs to implement much tighter controls and detect fraudulent behavior, the general picture looks quite unchanged and warranty fraud continues to be a challenge.
The strategic importance of warranty management has increased and the general maturity of the warranty profession in the industry has improved during the past 15 years. However, the battle against warranty fraud continues to be a challenge for many warranty professionals.