In recent days, we have all had to rethink how we can conduct business while ensuring we take the necessary measures to keep ourselves, employees, customers, and communities safe. Social distancing and working remotely are crucial in helping to slow the spread of coronavirus.
Connected Customer Experience
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.
The growing importance of Warranty and Service Contracts for Manufacturers
Over the past several decades, durable equipment manufacturers have experienced an evolutionary shift with respect to how they manage service interactions after the original product sale. Manufacturers originally considered the warranty as a necessary cost they had to contend with in order to keep the customer happy, resolve product failures, and obtain critical data required to improve product quality. Manufacturers no longer view the provision warranty and aftermarket service as a cost of doing business that must be controlled but as an opportunity to add value, obtain critical insights to drive product innovation, and generate incremental revenue and profits.
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 blog post is based on workshop session by Mize at ENG’s Automotive Warranty Management conference on Oct 16th & 17th in Dearborn, MI. You can download the workshop presentation or read the summary blog post about the conference.