The proliferation of telematics can be leveraged in this trans-value chain communication. The realtime data exchange allowed by the technology can help car makers determine when repairs occur and the extent of work against a warranty. This allows original equipment makers and dealers to benchmark delivery of service—in terms of wait times—and reduce out of policy behaviors and fraud. The depth and quantity of information available through telematics can help companies minimize the risks surrounding the management of extended warranties, and significantly enhance their business performance.
From Administration to Value Focus
Another way to improve communications and gain greater control of the warranty management function is to strategically source non-value-add areas, such as claims handling. Companies focused in the administration of handling claims and the back-office aspects of warranty management drain precious resources that otherwise could be allocated to addressing quality issues. In the consumer electronics industry, Accenture has worked with a wide range of clients that have sourced their claims management and administrative functions. We see the automotive industry following suit. The strategic sourcing of back-office administration not only will help companies focus on the value-added quality initiatives that will improve business performance, but it also can significantly lower costs.
High-performance Warranty Management
As revenues continue to plummet, companies are looking for innovative ways to approach warranty management. Accenture’s experience in the industry in helping clients move to a higher level of performance is pointing to two trends. First, companies are working to create seamless communications across the value chain to allow for more collaborative handling of the area. And, following the example of consumer electronics, some are considering the strategic sourcing of administrative back-office areas to ensure a tighter focus on creating competitive barriers through warranty management. The end result: greater revenue generation in warranty and improved business performance.