Warranty management systems help organisations manage warranty data more effectively and efficiently. With these systems, organisations can track product warranties across multiple channels such as distributors, retailers, manufacturers and even customer service teams.
Let’s get into the details!
What is Warranty Management System?
A warranty management system is an effective tool for companies that want to ensure that customers receive maximum value from the products and services they purchase.
A warranty management system helps customers make the best decisions when purchasing goods and services, such as whether they would prefer to buy a product or service with a complete replacement guarantee or opt for a limited repair warranty covering repairs up to a specified number of years. This decision also affects customer satisfaction since most buyers want the assurance that they can purchase a product or service again without paying any out-of-pocket costs.
Warranty management systems help manufacturers, distributors, and retailers provide consumers with the information they need to make the right choice when purchasing products and services. These systems collect data regarding product usage, customer complaints and technical issues, along with other helpful information that can assist businesses in meeting consumer expectations.
Warranty management tools also provide comprehensive reporting capabilities that make it easier to identify areas where improvements could be made. This helps companies improve operating efficiencies and reduce costs. These benefits are significant because warranty management systems are often much cheaper than having an internal team focused solely on managing warranty records.
The benefits associated with warranty management include improved customer satisfaction, increased revenue, reduced operating expenses and enhanced business continuity. Companies that implement a warranty management system usually improve their bottom line because they enable them to increase customer retention rates, reduce customer attrition and lower the total cost of ownership.
Global Motors’ WMS
The warranty contract is an essential component of vehicle ownership. But there are many ways to manage warranties today. A lot depends on the vendor, how well-defined the benefits are, and whether the buyer wants to pay for them.
Global Motors’ warranty management helps buyers protect themselves against unforeseen problems. They help their clients avoid costly repairs and keep more money in their pockets. The services include maintenance schedules, repair tracking, customer service and remote diagnostic tools.
The warranty management system keeps records of claims against the warranty and tracks these claims via email reminders. If a claim is submitted, the warranty management system generates automatic letters confirming the submission with instructions for further action.
Advantages of the Warranty Management System
A warranty management system is an online tool for managing warranties. It allows users to easily create warranty cards with customised fields such as warranty value, expiration date, and other product information. It also provides a complete database that stores all warranty data, allowing manufacturers to keep track of customer details, service history, and even order details.
The system is straightforward because no programming is required to set up the records; instead, the user creates a record simply by filling in the necessary fields. Users can also add multiple records within seconds.
Warranty Management software helps companies save money on paper costs, time spent updating existing systems and increases productivity through automation. It also helps prevent warranty card printing errors and reduces employee miscommunication. Since it is web-based, customers can access their data anytime, anywhere.
Disadvantages of the Warranty Management System
Everything comes with pros as well as cons. The same goes with Warranty Management System.
Here are some of the drawbacks discussed below:
1) Lack of flexibility. You don’t care much when you buy a product, whether it’s a physical or electronic item. However, warranty managers are highly specialised tools companies use with these items. They often require you to purchase separate licenses for each product type (physical and electronic). Also, they tend to focus more on inventory control rather than tracking customer feedback. You might find it challenging to customise the software according to your requirements.
2) Inability to track customer complaints. Since most manufacturers provide online access to users, it becomes easy for them to send out emails to customers complaining about issues with their products. Unfortunately, the warranty manager doesn’t keep a record of those complaints. So, while you may find out about the issue after receiving the complaint email, you won’t be able to act upon it until you receive another complaint from someone else.
3) Difficult to maintain relationships. While you might have excellent relations with your vendor, they also have vendors supplying them with the same services in most cases. Therefore, it is very likely that they would prefer to deal directly with those suppliers rather than going through an intermediary. As a result, maintaining the relationship between you and your vendor can become tricky because they might choose to go direct themselves rather than pass through you. Of course, this requires you to invest in extensive training programs to teach your team members about the various functions of the warranty management system.
4) Hard to integrate with ERP systems. One of the main reasons why most organisations use ERPs is to manage their financial activities. Yet, since most warranty management software providers use proprietary interfaces, integrating it with your existing ERP system can be pretty challenging.
5) Time-consuming. With the help of a warranty management system, you can save a lot of time by automating data entry and eliminating manual processes. However, the downside is that you have to spend a considerable amount of time learning the ins and outs of the system. It also takes away your ability to interact with customers manually.
6) Costly. Some of the higher warranty management software packages come at hefty prices. For example, some popular ones charge between $20,000 – $30,000 per year. So, if you plan to implement such software for all your products, you could be facing a substantial expenditure.
7) Complexity. Most of the time, when you buy any equipment, you don’t pay much attention to its technical aspects. But, warranty software is highly complex and involves lots of programming skills. So, implementing it can be highly time-consuming and expensive unless you have the right expertise.