Warranty management is a key concern for most original equipment manufacturers (OEMs) and suppliers. With the annual global spend on warranty claims between $45 billion to $50 billion (£30 to £35 billion) the importance of vehicle quality and warranty should not be underestimated.

 
With customers demanding ever higher quality levels, the pressure to contain costs is increasing and more advanced technology is being introduced into vehicles every day.

Researchers at BearingPoint, OESA, AIAG, CLEPA and Warranty Week developed and posted an online survey on warranty management practices. We published our findings in our Global Automotive Warranty Survey Report. The key findings were: The responsibility for warranty management is fragmented across departmental silos and between OEM and supplier organisations. Perspectives on what are the key issues vary dramatically between OEMs and suppliers. Win-win approaches are lacking and there is a lack of collaboration across the warranty value chain. There is a lack of an industry-wide definition of what constitutes the detection-to-correction cycle.

How BearingPoint brings value

In response to these findings BearingPoint created the Warranty Solution Suite. This suite contains two main parts:

• Early Warning Solution: Reducing the correction to detection time scale is a major factor in both reducing the warranty bill and improving the quality of the vehicles. BearingPoint helps clients achieve this through:
  • The retrieval, integration, reporting and analysis of Production, Sales, Warranty and Diagnostic Trouble Code information.
  • Intuitive, timely, and accurate analysis that is customized to an end user's approach to resolve field problems.
• Comparative Analytics Solution: BearingPoint undertakes analysis of all warranty claims and understand from the algorithms how part failures are distributed over time and how claim reporting is driven by customer behaviour.