The document discusses how warranty abuse has historically been an issue across various industries, providing examples of scams carried out by resellers, service providers, OEMs, parts dealers, and others. It then outlines how big data and software tools can help transform warranty management by capturing detailed failure and claim data, setting flags to identify anomalous claims, generating exception reports, and enabling random audits to reduce fraud and abuse. Implementing best practices like requiring core returns, unique serialization, pre-approval processes, and active data capture can help warranty managers pay attention to small details and deter unauthorized actions.
Whether you manufacture pallets, you pivoted from your core product to produce PPE, or maybe you are a retailer who is looking for some great insight from industry experts or you have accounting or finance questions related to your construction business or any manner of business in between, we would be glad to have you join us.
The topics we will cover are not only relevant and timely, but they are also sure to reveal growth opportunities in your business. This special presentation features insight into the PPP Loan and Paycheck Protection Program Loan Forgiveness process, CARES Act implication, R&D opportunities, Human Resources compliance risks, and insight from leading professionals in the manufacturing and professional services space.
Specifically, we will discuss:
- Where we stand now and the future of manufacturing
- Risks in Manufacturing
- Cybersecurity Concerns and Issues
- State and Local Tax Risks
- HR Policies For Your Organization
This informative event will be hosted and moderated by Dustin Raber, director of manufacturing and distributions services at Rea & Associates.
Which Gov't Agencies are Targeting Auto Dealers… and How to Reduce Your ExposureJim Radogna
Discover the Top Areas for Enforcement and Penalty Currently Costing Other Dealerships a Bundle! High Risk Areas for All Dealership Departments.
When it comes to government regulation and enforcement it seems that Auto Dealerships have a huge target painted on the rooftop.
Laws and regulations impacting auto dealers are many. However, this workshop we will focus on the top enforcement threats facing most auto dealers today and how you can prepare and adjust to lessen your dealership's exposure.
You will learn:
Which Federal & State Regulators are most active in dealerships right now
The most common enforcement actions taken against dealerships today
About the specific enforcement cases and the resulting monetary damages
Specific risks for Variable Operations, Fixed Operations & Human Resources
Best Practices to Avoid these very real potential liabilities
With these changing business dynamics, leading companies are forced to rethink their approach to the service business (after sales business). Service business can be roughly segmented into warranty and non-warranty services, by a proportion of about 1:20.
Spare Part Manufacturing Company is looking for a Big Data analytics solution that will pull data from the Datalog of the server to determine various issues
Oilr is a mobile app to request on-demand oil changes. If you need an oil change, instead of going to a traditional brick and mortar location, you simply open the Oilr application, click a button to schedule a service, and a certified oil change technician will come to your work, home, wherever to do an oil change. Our slogan is "Making the Necessary Convenient"
Whether you manufacture pallets, you pivoted from your core product to produce PPE, or maybe you are a retailer who is looking for some great insight from industry experts or you have accounting or finance questions related to your construction business or any manner of business in between, we would be glad to have you join us.
The topics we will cover are not only relevant and timely, but they are also sure to reveal growth opportunities in your business. This special presentation features insight into the PPP Loan and Paycheck Protection Program Loan Forgiveness process, CARES Act implication, R&D opportunities, Human Resources compliance risks, and insight from leading professionals in the manufacturing and professional services space.
Specifically, we will discuss:
- Where we stand now and the future of manufacturing
- Risks in Manufacturing
- Cybersecurity Concerns and Issues
- State and Local Tax Risks
- HR Policies For Your Organization
This informative event will be hosted and moderated by Dustin Raber, director of manufacturing and distributions services at Rea & Associates.
Which Gov't Agencies are Targeting Auto Dealers… and How to Reduce Your ExposureJim Radogna
Discover the Top Areas for Enforcement and Penalty Currently Costing Other Dealerships a Bundle! High Risk Areas for All Dealership Departments.
When it comes to government regulation and enforcement it seems that Auto Dealerships have a huge target painted on the rooftop.
Laws and regulations impacting auto dealers are many. However, this workshop we will focus on the top enforcement threats facing most auto dealers today and how you can prepare and adjust to lessen your dealership's exposure.
You will learn:
Which Federal & State Regulators are most active in dealerships right now
The most common enforcement actions taken against dealerships today
About the specific enforcement cases and the resulting monetary damages
Specific risks for Variable Operations, Fixed Operations & Human Resources
Best Practices to Avoid these very real potential liabilities
With these changing business dynamics, leading companies are forced to rethink their approach to the service business (after sales business). Service business can be roughly segmented into warranty and non-warranty services, by a proportion of about 1:20.
Spare Part Manufacturing Company is looking for a Big Data analytics solution that will pull data from the Datalog of the server to determine various issues
Oilr is a mobile app to request on-demand oil changes. If you need an oil change, instead of going to a traditional brick and mortar location, you simply open the Oilr application, click a button to schedule a service, and a certified oil change technician will come to your work, home, wherever to do an oil change. Our slogan is "Making the Necessary Convenient"
Market disruptions coupled with regulatory and legal changes have transformed how CPAs should be guiding their marine manufacturing clients forward. Today’s effective advisors are business partners - advising their marine manufacturing clients on not only their tax return and financial statement, but ever-changing industry and market trends and disruptions. Every marine manufacturer should be focused on these key areas when working with their CPA: R&D Credits, 199A Deduction, Sales & Use Tax and Market Consolidation.
How to Manage an International Equipment Leasing Programleaseaccelerator
Case study of how diesel engine manufacturer Cummins re-engineered its global equipment leasing management process using LeaseAccelerator's Equipment Lease Management software. Includes best practices for corporate lessees. Presentation from the 2011 AFP Annual Conference.
SLP1 Example Excellent Ford, Inc.NOTE This is an example of id.docxbudabrooks46239
SLP1 Example: Excellent Ford, Inc.
NOTE: This is an example of identifying and discussing the issues of Productivity and Process Improvement. Your paper may or may not take on the same form or format depending on the business you choose and the nature of the issues you identify. I have generated this business from my experience. You will see that I used four references. You should use at least three references (more is better) and citations to back-up your discussion about productivity and process improvement, as well as any information about the nature of your company that you may have obtained from the literature.
Introduction & Company Background
This discussion is about a fictitious Ford dealership, Excellent Ford, Inc. Excellent Ford, Inc. sells new Ford cars and trucks as well as quality used cars. The dealership has these departments: New Vehicle Sales, Used Vehicle Sales, Parts & Service, Body Shop, and the Accounting and Back Office. The dealership has generally done well over the many years it has been in business, serving the community of 50,000 and surrounding area of farmers and small businesses.
The business is managed day to day by the General Manager. As in any other business, productivity at Excellent Ford is measured by the ratio of output/input, as defined in many references such as Wikipedia (n.d.-a) and Kumar (2008). Productivity has generally not been an issue except during tough economic times, such as Excellent Ford has been experiencing the last several years and up to now. Each department has its own productivity issues since they are staffed and structured differently and each has its own goals.
The New Vehicle Sales department is managed by the New Sales Manager. There are several ways that productivity is measured. Keeping in mind the general form of Productivity, Output/input, productivity measures for new car sales are:
Total number of new cars sold/cost of new cars sold
Profit from sales of new cars/cost of new cars sold
Profit from sales of new cars/Number of new cars sold
Profit from sales of new cars/number of prospects on the lot
The Service department is managed by the Service Manager. And there are several ways to measure productivity.
Total Retail Sales / Repair Order
Tech time sold / Repair Order
Parts sold / Repair Order
Tech time sold / Total Tech time paid
Processes at Excellent Ford, Inc.
Excellent Ford, Inc., like all businesses, is comprised of many processes as defined in the Handbook for Basic Process Improvement (n.d.) Here are some examples:
New and Used Vehicle Processes:
ORDERING NEW VEHICLES FROM FORD
PREPING NEW VEHICLES ON ARRIVAL FOR SALE
BUYING/SELLING USED VEHICLES AT AUCTION
REPAIRING USED VEHICLES TO MEET STANDARDS AND PREP FOR SALE
SELLING AND DELIVERY OF VEHICLE
Parts and Service Processes:
ORDERING PARTS
RECEIVING AND STOCKING PARTS
TALKING TO CUSTOMER AND WRITING A REPAIR ORDER
REPAIRING A CUSTOMER VEHICLE
Productivity and Process Improvement
This discussion will review producti.
A Next-Generation Approach to Integrated Warranty ManagementCognizant
For today's manufacturers, warranty management is one of the most tangible customer-facing functions. A next-generation, closed-loop warranty system can help companies automate and integrate warranty-related data to enhance field service and improve the management of returns, repairs and claims.
CPAs responsibilities to detect fraud in audits, required approaches, types of financial statement frauds and specific case examples of different types of financial statement fraud
More Related Content
Similar to WCM 2013 MS - From Horrors to Heroes - How Big Data and Software Tools are Transforming Warranty Management Final
Market disruptions coupled with regulatory and legal changes have transformed how CPAs should be guiding their marine manufacturing clients forward. Today’s effective advisors are business partners - advising their marine manufacturing clients on not only their tax return and financial statement, but ever-changing industry and market trends and disruptions. Every marine manufacturer should be focused on these key areas when working with their CPA: R&D Credits, 199A Deduction, Sales & Use Tax and Market Consolidation.
How to Manage an International Equipment Leasing Programleaseaccelerator
Case study of how diesel engine manufacturer Cummins re-engineered its global equipment leasing management process using LeaseAccelerator's Equipment Lease Management software. Includes best practices for corporate lessees. Presentation from the 2011 AFP Annual Conference.
SLP1 Example Excellent Ford, Inc.NOTE This is an example of id.docxbudabrooks46239
SLP1 Example: Excellent Ford, Inc.
NOTE: This is an example of identifying and discussing the issues of Productivity and Process Improvement. Your paper may or may not take on the same form or format depending on the business you choose and the nature of the issues you identify. I have generated this business from my experience. You will see that I used four references. You should use at least three references (more is better) and citations to back-up your discussion about productivity and process improvement, as well as any information about the nature of your company that you may have obtained from the literature.
Introduction & Company Background
This discussion is about a fictitious Ford dealership, Excellent Ford, Inc. Excellent Ford, Inc. sells new Ford cars and trucks as well as quality used cars. The dealership has these departments: New Vehicle Sales, Used Vehicle Sales, Parts & Service, Body Shop, and the Accounting and Back Office. The dealership has generally done well over the many years it has been in business, serving the community of 50,000 and surrounding area of farmers and small businesses.
The business is managed day to day by the General Manager. As in any other business, productivity at Excellent Ford is measured by the ratio of output/input, as defined in many references such as Wikipedia (n.d.-a) and Kumar (2008). Productivity has generally not been an issue except during tough economic times, such as Excellent Ford has been experiencing the last several years and up to now. Each department has its own productivity issues since they are staffed and structured differently and each has its own goals.
The New Vehicle Sales department is managed by the New Sales Manager. There are several ways that productivity is measured. Keeping in mind the general form of Productivity, Output/input, productivity measures for new car sales are:
Total number of new cars sold/cost of new cars sold
Profit from sales of new cars/cost of new cars sold
Profit from sales of new cars/Number of new cars sold
Profit from sales of new cars/number of prospects on the lot
The Service department is managed by the Service Manager. And there are several ways to measure productivity.
Total Retail Sales / Repair Order
Tech time sold / Repair Order
Parts sold / Repair Order
Tech time sold / Total Tech time paid
Processes at Excellent Ford, Inc.
Excellent Ford, Inc., like all businesses, is comprised of many processes as defined in the Handbook for Basic Process Improvement (n.d.) Here are some examples:
New and Used Vehicle Processes:
ORDERING NEW VEHICLES FROM FORD
PREPING NEW VEHICLES ON ARRIVAL FOR SALE
BUYING/SELLING USED VEHICLES AT AUCTION
REPAIRING USED VEHICLES TO MEET STANDARDS AND PREP FOR SALE
SELLING AND DELIVERY OF VEHICLE
Parts and Service Processes:
ORDERING PARTS
RECEIVING AND STOCKING PARTS
TALKING TO CUSTOMER AND WRITING A REPAIR ORDER
REPAIRING A CUSTOMER VEHICLE
Productivity and Process Improvement
This discussion will review producti.
A Next-Generation Approach to Integrated Warranty ManagementCognizant
For today's manufacturers, warranty management is one of the most tangible customer-facing functions. A next-generation, closed-loop warranty system can help companies automate and integrate warranty-related data to enhance field service and improve the management of returns, repairs and claims.
CPAs responsibilities to detect fraud in audits, required approaches, types of financial statement frauds and specific case examples of different types of financial statement fraud
Similar to WCM 2013 MS - From Horrors to Heroes - How Big Data and Software Tools are Transforming Warranty Management Final (20)
2. ®
“From Horrors to Heroes: How Big Data
and Software Tools are Transforming
Warranty Management”
Michael Schuler
Vice President, U.S. Sales
Zylog Systems (Canada) Ltd
3. ®
Zylog is a $500M Global Company that provides:
IT Staff Augmentation (IT, Engineering, Executive Management,
Retail and Service) – Zylog Manages a Database of 2.2 Million Resumes
and has over 2,000 Contractors engaged across North America.
Software Applications – Zylog’s 3,500+ programmers have developed
best-in-class software applications including FieldPower®, Silvanus360®,
SilvanusPlus® and Claims Advantage - Software for service order
management, supporting in-warranty, extended warranty and COD
transactions. Modules Include: Field Service Management with Optimized
Routing and Dispatch, Depot Repair, Claims Adjudication, Reverse
Logistics, Remanufacturing, Recycling and Value Recovery (all with Mobility
features). Other solutions include Zylog’s HRIS Software Suite for
Applicant Tracking, Personnel and Contingent Workforce Management.
Service Delivery – Enterprise Level Implementation of IT Software and
Service Solutions (SAP, Oracle, MS Dynamics and SharePoint). These
Services include Enterprise Architecture Consulting and Design, Data
Migration, Middleware, EDI/FTP/API Programming and Off-shoring.
About our Company
4. ®
Agenda
• Headlines and Stories – Warranty Abuse, Scams &
Gaffes
• Resellers/Dealers
• Service Providers
• Original Equipment Manufacturers (OEMs)
• Parts Dealers
• Third-Party Administrators (TPAs) - Extended Warranty
• Retailers
• Customers
• Common Factors
• How Big Data and Software Tools are Transforming
Warranty Management
• Eliminating Warranty Abuse through Data, Flags, Exception
Reporting and Live Audits
• Best Practices Applied
5. ®
Headlines – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
• Apple executives in the USA are investigating
a multi-million dollar warranty scam in
Australia. Under investigation is a major
Apple reseller group whom it is alleged lodged
warranty claims for MacBooks and other
Apple devices knowing that they were false.
Massive Apple Warranty Scam Uncovered
By David Richards, October 30, 2008.
6. ®
Headlines – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
• The North American Jaguar distributor believes a
Plano dealership has operated under a plan of
“controlled greed” since 2002 to defraud the
distributor of more than $20 million.
• The plaintiff states that Millennium Motor Cars, an
authorized Jaguar dealership since 1999, has
engaged in a systematic and pervasive fraud scheme
that involved the sales, services and parts
departments and has gone to great lengths to
conceal their deception.
Jaguar dealership accused of warranty and
incentive fraud – the Southeast Texas Record, August
27, 2009. By Michelle Massey, East Texas Bureau
7. ®
Stories – Warranty Abuse, Scams &
Gaffes – Resellers/Dealers
Major OEM (PC & CE) – Service Executive
• Reseller bought hundreds of units and disassembled
them for shipment to Latin America and Mexico.
• Reseller then claimed high% of units had defects,
receiving payment for warranty claims and creating
cross-section of parts to support service operations.
• Parts were shipped separately.
• As non-functional units, taxes/tariffs were minimal.
• Units were then reassembled.
• Reseller was busted when OEM performed on-site
audit and confirmed no warranty actions were ever
performed.
8. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM (PC) Service Executive
• OEM Monitor Recall 1988 – 1989 for various
RGB Monitors - Blurring and Power Issues
related to Power Supply and Fly-back
Transformer Defects
• OEM Offers Replacements on Defective
Monitors, over 100,000 units returned
(through Resellers)
• A normal recall event or an historic gaff?
9. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
10. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
Defective Monitor
Returned to OEM
by Reseller
(Reseller Receives
New Monitor plus
Processing Fee)
11. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
Defective Monitor
Returned to OEM
by Reseller
(Reseller Receives
New Monitor plus
Processing Fee)
OEM sells Defective
Monitor Sold to Scrap
Dealers for $25+
12. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
Defective Monitor
Returned to OEM
by Reseller
(Reseller Receives
New Monitor plus
Processing Fee)
OEM sells Defective
Monitor Sold to Scrap
Dealers for $25+
Scrap Dealers trade
Defective Monitor
for New Monitor
(some Resellers
actively buy
Defective Monitors)
13. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
Defective Monitor
Returned to OEM
by Reseller
(Reseller Receives
New Monitor plus
Processing Fee)
OEM sells Defective
Monitor Sold to Scrap
Dealers for $25+
Scrap Dealers trade
Defective Monitor
for New Monitor
(some Resellers
actively buy
Defective Monitors)
OEM later
learns some
Units were
Credited 13
Times
14. ®
Stories – Warranty Abuse, Scams
& Gaffes – Resellers/Dealers
OEM Replaces Defective
Monitor with New
Monitor worth $425
Defective Monitor
Returned to OEM
by Reseller
(Reseller Receives
New Monitor plus
Processing Fee)
OEM sells Defective
Monitor Sold to Scrap
Dealers for $25+
Scrap Dealers trade
Defective Monitor
for New Monitor
(some Resellers
actively buy
Defective Monitors)
OEM later
learns some
units were
credited 13
Times
15. ®
Headlines – Warranty Abuse, Scams
& Gaffes – Service Providers
By STEVE LOHR Published: September 30, 1993
COMPANY NEWS; IBM Helps Parts-Scam Investigators
Although the cost of the fraud to the International
Business Machines Corporation is not known precisely,
loss estimates range from "tens of millions to
hundreds of millions" of dollars over a period of
more than two years, according to one investigator.
16. ®
Headlines – Warranty Abuse,
Scams & Gaffes – Service Providers
Service Providers process
Warranty Claim with IBM
on Defective Boards
Defective Boards
Returned to IBM
by Service
Provider (IBM
paid $90 fee plus
sent New Board)
IBM sells Defective
Boards to Scrap Dealers
for Low $$$
Scrap Dealers sell
Defective Boards
to Service
Providers for
Strong Profits
Costs
IBM Tens of
Millions
During
Period of
Major Losses
$16B
17. ®
Stories – Warranty Abuse, Scams
& Gaffes – Service Providers
Major OEM (PC & CE) – Service Executive
False warranty claims were processed by
Service Provider using:
• Obituaries (to identify customers)
• Service Provider acts as a walk-in
customer at local retailers (to gather
serial number/model number information
of new machines)
• Service Provider was busted through
Customer Satisfaction follow-ups.
18. ®
Stories – Warranty Abuse, Scams
& Gaffes – Service Providers
Major OEM (PC & CE) – Service Executive
• Service Provider had unusual percentage of
claims (higher parts per unit defects and
repeat serial number usage)
• Service parts were posted on EBay by
technicians (parts were smuggled out in
scrap boxes and recovered in dumpster)
• New owner was not aware of technicians
activities but agreed to make restitution to
OEM
19. ®
Headlines – Warranty Abuse,
Scams & Gaffes - OEMs
Packard Bell Reaches $5 Million
Settlement
by CNET News.com Staff September 6, 1996
Packard Bell agreed to pay more than $5
million as part of a multistate and federal
settlement over allegations the computer
maker sold previously used components in
"new" computers, the company announced
today.
20. ®
Stories – Warranty Abuse,
Scams & Gaffes – Parts Dealers
Industry Service Executive
• Hard Drives Warranted for 1 year but covered by 3 Year
ODM (Original Device Mfg) Warranty – i.e. Seagate
• Most Retailers didn’t realize there was another Warranty
available on Hard Drives (but Parts Dealers know)
• Parts dealers buy Defective Hard Drive Cores for $5
• Parts Dealers Process Warranty on Hard Drives and
Receive Free Replacements from ODM (not OEM)
• Parts Dealers sell Refurbished Drives for up to 80% of
New Hard Drive Price.
• Same Process and Criteria works on other Parts –
Software, Accessories, Processors, Audio and Video Cards.
• Some in Channel figure this out but still charge Customers
for Part Replacements after 1 year PC Warranty Ends.
21. ®
Headlines – Warranty Abuse,
Scams & Gaffes - TPAs
State reaches Huge Settlement with Bogus
Warranty Company
by Travis Pittman, King 5 News, July 19, 2012
Washington, Oregon, Idaho and nine other states have reached a
multi-million dollar settlement with a bankrupt vehicle service
contract dealer accused of misleading customers.
Thousands of Northwest residents who bought auto warranties
from US Fidelis could be in line for some of the money, according
to the Washington State Attorney General’s Office. The settlement
is in addition to an earlier deal with service contract provider
Warrantech. Attorneys general alleged Warrantech financially
benefitted from US Fedelis's practices. It creates what the AG’s
office calls a $14.1 million Consumer Restitution Fund.
22. ®
Stories – Warranty Abuse,
Scams & Gaffes - Retailer
TPA – Service Executive
• Extended warranty contracts sold by
regional retailer but for every 20 contracts
sold, retailer pocketed money for 15 and
filed only 5 contracts.
• When claims came in, retailer used 5 valid
contracts to process claims.
• Retailer was caught by audit of TPA
contracts on-site and disproportionate
claims percentages.
23. ®
Stories – Warranty Abuse,
Scams & Gaffes - Retailer
TPA – Service Executive
• TPA did not track serial numbers of covered units at
Point of Sale, tracking was by Customer and model.
• Service manager at retailer creatively applied non-
covered customer “walk-in” repairs, to valid TPA
contracts for the same unit.
• Service manager pocketed COD repair fees paid by
customer (for non-covered unit).
• Service manager was caught after a direct customer
satisfaction follow-up with TPA customer.
24. ®
Stories – Warranty Abuse,
Scams & Gaffes - Customers
Retailer (PC) – Service Executive
• Retailer was Self-Funded for Extended Warranty
• Customer Purchases Ten Notebook Computers but
takes out Extended Warranty Plan on only One Unit
• Customer files numerous claims on Defective PC with
Retailer (for post-warranty defects)
• System Board was Replaced 3 Times, LCD 2 Times
and Hard Drive 1 Time over 18 Month Period.
• Finally was identified as Abuse when Company
identified Serial Number of last Defective System
Board didn’t match Replaced System Board.
25. ®
Common Factors
• Warranty Abuse is like water seeking its level, unless it’s
properly controlled it will find its way around most
obstacles, routing through weaknesses in any system.
26. ®
Common Factors
Weaknesses in the System may include:
• Infrastructure: Lack of defined warranty terms,
pre-approval process, challenges to diagnostics or
data provided by service provider.
• Inspection Process: Weakness in entitlement
verification (verifying the customer, the product,
the serial number, the contract type and service
provider). Inability of processes to identify areas of
pressure/concern (known areas of fraud) returned
parts and cores.
• Response: Ability to identify or respond to
warning signs.
27. ®
How Big Data and Software Tools are
Transforming Warranty Management
• Big Data (System) should capture Failures (by customer),
number of claims by customer and serial number, service
provider ID, tech ID, diagnosed failures, replacement parts
requested and used, returns of unused parts and cores,
average failures by product model, failure type, service
provider and customer.
• Convert from Reactive to Proactive mode.
• Flags should be set to identify anomalies on claims, (shotgun)
tech diagnostics and claim rates/types above normal levels.
• Reporting – algorithms set triggers to identify anomalies
• Challenges should be made while claims are in process (at
entitlement notification and within service window – <3 days)
• Random “active” audits should be performed on flagged Claims,
Resellers and Service Providers.
• Total Percentages and costs of Claims as Percentage of
Contracts (or Total Products Sold)
28. How Big Data and Software Tools are
Transforming Warranty Management
Multi-Vendor
Claims Mgmt
Unit/Claims
Data Forecasting
& Flags
Reports &
Dashboards
SMS/
Emails
Portal
Parts, Core &
Service Mgmt
Claims
Approval
Customer &
Service Provider
Information
Administration
RMA
Mgmt
Real Time
Claims Mgmt
Software Tools &
The Role of Big Data
Dispatch
Calendar
Field
Service and
Depot
Repair
Mgmt
Work
Order
Mgmt
31. ®Lessons from NYC
• Rudy Giuliani - Apathy fosters an environment
for crime. Pay attention to the small stuff, it
shows you care about everything.
• For NYC Police this meant:
• Graffiti
• Vagrants
• Squeegee men
• Turnstile jumpers
• Major crimes dropped by over 50% in eight
year term
32. ®
Best Practices Applied
• Pay attention to the details, it shows you care about
everything. It deters those that might consider an
unauthorized action or abusive practice.
• Require core returns on repairable and high $ parts.
• OEMs – Use alpha-numeric non-standard and non-
linear serialization process for parts and units. Key
codes limited to a few executives. Reduces ability of
counterfeiters to produce serialized parts/units.
• Take lesson from secondary market (invisible tags).
• OEMs and TPAs – Establish clear communicated
guidelines, expectations, processes and policies.
• Track repaired units and replacement parts by serial
numbers.
33. ®
Best Practices Applied
• Online, pre-approval for warranty entitlement validation.
This ensures payment to Service Provider, while providing
the opportunity for intervention and challenge.
• Use active data capture of service event information,
diagnostics, parts requested and customer information.
• Use Exception Reports to Capture and Challenge Warranty
Anomalies.
• Perform active “live” audits by phone and site visits
• Challenges should be made while claims are in process (at
entitlement or within service window – 2/3 days)
• Perform Closed-loop (Random and Flagged) Auditing
through Site Audits and Customer Satisfaction Surveys
• Invest in Better Software Systems and Data Capture
34. ®
Questions?
“From Horrors to Heroes: How Big Data and
Software Tools are Transforming Warranty
Management”
Michael Schuler
Vice President, U.S. Sales
Zylog Systems (Canada) Ltd
825 Market Street, Bldg M Suite 250 Allen, Texas 75013
Mike.Schuler@Zylog.Ca
(972) 996-4764 Work
(940) 300-1749 Cell