Viziya is now part of Prometheus Group

Are Warranties Worth the Hassle?

Posted under Blog by Sean Matteson, Director - Project Management Office

Warranties worth the hassle

Warranties have a bad reputation. The consumer industry has taught us that warranties are nothing more than a money grab with no real value. People assume that warranties are more hassle than they are helpful and frequently forget about them before the ink is dry. While it can be argued that buying the extended warranty on your new television may not be necessary, when it comes to your company’s assets, it is worth it to keep a closer eye on your warranties. 

Most companies today aren’t investing enough time and effort to realize substantial warranty reclamation. Typically, companies are using cumbersome tools (e.g. MS Excel) and complicated processes.?Often, they aren’t collecting the appropriate information to mitigate against vendors denying claims. As a result, they don’t realize the sort of proportion of funds recovered through warranty reclamation that they should, and often they end up giving up on the process all together. (“It’s not worth the effort.”) 

Most maintenance and asset management solutions don’t allow for effective tracking of both the assets and items that may have warranty coverages, the contract information concerning the warranty contracts and the coverages with appropriate vendors. 

Failure to be able to link and effectively track the warranty contracts and coverages relative to the assets and/or items, along with the pertinent trigger information (e.g. asset in-service dates, items’ issue dates, asset meter readings like hour meters or odometers) prevents you from being able to initiate warranty claims with a high probability of successful reclamation. 

Bottom line is…? Missed opportunities with warranty claims result in lost dollars. 

How do we overcome the hurdles and enable the effective reclamation of warranty dollars? 

  • Have one system where you can maintain warranty contract information, including coverage details, and relationships to assets and/or items which are covered under the warranties. 
  • Use a tool that looks through the contracts and coverages, considers the work order information against the assets and items covered, and suggests claims that you should pursue.
  • Have a tool that enables management of the claims you create from creation through to close.
  • Have a tool that provides a view into warranty claim history, and use the data to score vendors and help with decisions about which vendors and which manufacturers you buy from. 

Realize that the time and effort invested (even if that means dedicated FTE’s for warranty management and reclamation) is money well spent. The re-couped dollars will by far outweigh the dollars invested. 

For more information on Why Warranties are Worth a Closer Look, check out our whitepaper here.

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