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Make the robot do the grunt work

In a haystack of warranty and pricing claims, AI finds the needles

WHEN CRITICAL INSIGHTS ARE BURIED IN THOUSANDS AND THOUSANDS OF CLAIMS

The Situation

The waste was one thing.

A large manufacturer was keen to reduce spend on warranty
costs and pricing claims—with claim audits a dauntingly manual process. But
more importantly, the company knew that critical insights around quality and
safety were buried within those claims. But how to find them?

Our client knew a better way was possible—but where to
start? The current state was that they were investing significant dollars in
warranty costs and pricing claim payments to their dealers and distributors.
And the manual processes they were deploying to conduct analyses and audits on
a small percentage of claims were in desperate need of modernization. A smart
AI technology solution could provide more-comprehensive review and analysis
that could better screen claims and improve end-to-end management of supplier
chargeback and product quality.

But did they have the resources to conduct the kind of data
science and business process transformation needed to affect that
transformation—and in the process save time and uncover insights? How could
they implement the robust analytics models needed to make it possible to review
and analyze the data in a way that would yield the benefits they sought?

The Solve

To most effectively dig through this mountain of data to uncover the insights the client knew were buried within, Deloitte leveraged Warranty Analytics, a proprietary, AI-driven solution that performs millions of analyses and monitors warranty and pricing claims on an ongoing basis to detect quality issues or potential waste due to anomalies, policy violations, or other irregularities.

As the technology identifies opportunities, it turns those insights into alerts and action plans, enabling humans to investigate and research high-risk dealers. From a user viewpoint, the technology is streamlined; it automatically ingests new data, leverages AI and specialized analytic models, and displays insights and visuals that support workflow and management tracking. And not only is the technology itself automated, but so too was its deployment, as Deloitte successfully implemented the solution within the organization’s environment through a fully automated production process.

Since implementation, the solution has delivered a real impact on the client’s business, helping to improve issue detection, process efficiency, and coverage, and identifying potential recovery opportunities.

AI DOES THE HEAVY LIFTING.HUMANS DOTHE HEAVY THINKING.

The Impact

The company is now detecting issues more quickly, significantly saving on warranty costs and pricing claims, and making informed decisions for the future.

And the journey is hardly over. Additional features enable the client to further refine existing analytics and detect monitored issues more accurately, as well as extend the purview of the analyses in order to capture more areas of recovery and loss prevention.

The discoveries the client has made around intelligent quality, warranty waste, and pricing claims have also helped drive behavior change at the dealer and distributor levels, further reducing warranty spend. The solution has positively impacted how they work and improved their efficiency.

WHEN INSIGHTS ARE BURIED, AI CAN BE AN EFFECTIVE SHOVEL.