The Service Effectiveness of a company is tightly related to its ability to manage properly its warranty processes. This activity, which has not always been under the spotlight of executives, is however key in the aftermarket industry and is much more than just a way to cope with problems experienced by customers. With the central position that Warranty Management occupies in the service area, with its numerous interactions with many departments within a corporation and its huge potential effects - positive or negative - on the business, Deloitte believes that a Best-in-Class Warranty Management process is a must for a Best-in-Class Service Effectiveness.
Warranty Management is often seen as a cost, a burden which does not add value to the company. Many difficulties are indeed related to warranties such as reverse logistics, claim management, fraud detection, supplier charge back mechanisms, warranty policies maintenance… The biggest challenge related to Warranty Management is the ability to transform it from affliction to benefit, and the opportunities are huge. Businesses striving for excellence in the aftermarket must leverage Warranty Management and see it as an asset to increase their strategic advantage.
The potential benefits are various and impressive, such as the improvement of product quality (ultimately leading to lower failure rates and warranty costs), new sales on service (e.g. extended warranties), better supplier recovery, improvement of claim handling process, enhanced market share and perception, improvement of service levels and customer loyalty, efficient fraud detection…
Thanks to its unique and deep knowledge of the aftermarket industry, Deloitte helps clients leverage their Warranty Management process thanks to a holistic and integrated vision in order to streamline their Service Effectiveness and build sustainable strategic advantage.