Warranty Management System hold Promise as Next-generation Approach for Customer Oriented Services

Published Date : Apr 01, 2016

In today’s times, warranty management is one of the most tangible customer-oriented activities that offers manufacturers the opportunity to improvise customer experience by means of automation of administration of terms and contracts. Other than this, warranty management encapsulates “on-the-ground” failure instances for a know-how for future product designs.  Nevertheless, the cost of these systems continue to soar. Additionally, with increasing internet penetration and an increasing number of manufacturing firms heading towards automation of warranty claim processes, it will result in spurring growth of the warranty management system market.

Amongst all, it is high-tech and consumer electronics companies that are worst affected on account of the escalating prices of warranty management costs partially due to rapidly falling prices, rising product complexity, and increasing demands from quality-focused customers.

In warranty management systems (WMS), the value chain typically crisscrosses an array of multiple business operations within the manufacturing organization: product development, product management, sales, service, supply chain management, contract management, finance, claims processing, and electronic distribution. The operational functions in WMS are divided as follows:

  • The product development team is involved in the overall design and quality of the product
  • The team for product management holds ownership of term and conditions of the warranty; apprises customers about updates related to the product, develops the warranty, and allocates asset components or individual pieces to associated warranties.
  • Data pertaining to terms and conditions are utilized by the sales team to stay attune in the competition and boost revenues.
  • Services performs the execution of promised warranty terms and generates a job or service order.
  • Field service representatives visit customer locations and oversee repairs or investigations depending on the nature of the defect.
  • Repair center technicians carry out product defect and repair analyses that are returned from customers for reasons of repair or replacement.

Currently, cloud-based WMS are gaining prominence due to the increased penetration of the internet across virtually all industry verticals.