Explain about Warranty Management Process in Automotive Industry

An automotive warranty management system is a computerised tool that allows customers to manage their warranties easily. 

How would you rate the current state of automotive warranty management processes globally? Is there room for improvement?

Automotive companies spend over $100 billion annually on warranty claims alone. That number is getting doubled in recent times. To combat rising warranty costs, manufacturers have tried several strategies, such as improving service centres, increasing customer satisfaction, offering extended warranties, and even introducing new services.

What is Warranty Management System, and how does it function?

A Warranty management system is a product that allows users to manage warranty information related to products. This includes tracking customer service requests, monitoring warranty status, creating records for warranty reports etc.

Warranty Management Systems are typically used on larger accounts where there may be multiple locations to support, and customers may require additional services such as repair or replacement.

A typical example would be an automotive dealership. The owner may need assistance with the paperwork, transport home, or a loaner vehicle when a car breakdown occurs. As more cars break down, the dealer needs a way to track which vehicles have been serviced and completed and store data regarding the issue and any associated costs.

The three main parts of a typical Warranty Management System:

Maintenance Tracking – Assists dealerships and manufacturers in keeping track of maintenance history.

Customer Service Request – Allows dealerships and clients to enter service requests directly into the system and allows them to track whether or not those requests have been fulfilled.

Reporting Tools – Used to produce monthly/quarterly/annually reports for clients detailing performance statistics and trends, including warranties.

Warranty Management Process in Automotive Industry

Warranty Management is a critical function for every manufacturer of automotive products. All manufacturers face challenges when it comes to warranty management. From dealing with customer complaints to managing warranty operations, many issues arise during this process. To keep the business running smoothly, we must address these problems immediately.

To effectively manage warranties, an organisation must have a comprehensive system that can capture data accurately and efficiently. This data can include warranty details, status, invoices, repair orders, etc. This information allows managers to identify potential problem areas within warranty operations quickly. Managers also can analyse data and determine how well each department or individual performs, allowing them to make improvements where necessary and provide training to improve overall performance.

To better organise and maintain warranty records, companies may choose to implement a software tool designed specifically for this purpose. Companies may consider purchasing a variety of tools, including Customer Relationship Management (CRM) systems, Service Asset Management (SAM), Maintenance Management systems (MMS), Product Data Management (PDM), and Warranty Management Software. Each type of software provides its own set of advantages and disadvantages based on company requirements.

For example, CRM systems offer a central database where customers can view and update contact and account information. These systems are often used to track customer history and interactions with the company. However, CRM systems do not necessarily help maintain warranty documents due to the lack of integration between warranty databases and other parts of the CRM system.

On the other hand, SAM helps organisations record service asset information like maintenance history, inspection reports, etc. While this information is essential for warranty purposes, it cannot replace traditional paper-based records, which remain the most effective way to store information.

MMS systems integrate warranty tracking and service management functions, thus combining the best features of each method. PDM systems collect product information while providing functionality to store warranty information. Finally, warranty management software combines the best aspects of multiple types of software programs into one integrated package. This combination allows users to access company data more efficiently.