Tracking Warranties: Reduce Costs, Increase Profits

Does your company track manufacturers’ warranties on products you sell? Would your customer service reps or CFIs be able to access a specific warranty if a customer returns 18 months after the fact to ask for a repair or file a claim? Do you know how much your company spends on servicing warranty claims each year?

For all too many businesses, the answers are no, no and no.

Tracking warranties and warranty service is a complex task, requiring a great deal of time and often yielding little or no useful information. As a result, many companies take the path of least resistance (in the name of good customer service) and simply dispatch trained service professionals to provide repairs, without confirmation that a warranty claim is valid.

Why worry about a few questionable warranty claims in the grand scheme of things?

Because in 2012 the worldwide total for warranty claims payments by U.S.-based companies was just shy of $24 billion.*  Yes, 24 BILLION.  And 6% of that total went to warranties paid for building materials.**  That kind of money is worth worrying about.

Knowing where your products originate, the details and validity of individual product warranties and the costs associated with claims could have a significant impact on your bottom line. Warranty information is usually available from the manufacturer but, depending on the nature of the warranty, the information could be anywhere. The manufacturer’s customer service department may hold some documents, while engineering or quality assurance departments may hold others. Tracking even a single warranty can mean hours upon hours of time and effort for your employees. Fortunately, recent innovations in web-based technologies have made warranty tracking fast, seamless and painless.

The good news is that entrepreneurs are now developing web-based applications which track warranty information for each product you sell. These applications can help identify opportunities for your company to decrease expenses and increase revenue tied to warranty claims.  Some empower a company to take control of many types of product information in addition to warranties, including rebates, product specs and production and delivery schedules. Some applications also allow everyone in the supply, support and delivery chains access to the information, which greatly increases efficiency.

Those companies willing to take advantage of new and better technologies to improve information gathering and increase efficiency are the companies poised to decrease costs and increase profits. Tracking warranties is just the beginning.

Contact Cilio Technologies to learn more about tracking warranties and other essential business information through the Partners Portal, a multi-faceted, web-based technology designed to streamline your entire business information system.

*Warranty Week: Tenth Annual Warranty Report, Totals & Averages

http://www.warrantyweek.com/archive/ww20130321.html

**Warranty Week: Tenth Annual Warranty Report, Totals & Averages; Figure 5

http://www.warrantyweek.com/archive/ww20130321.html

 

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