SAP Solutions
Warranty Claims Management
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The Warranty Domain
There are multiple angles within the warranty domain which makes this such an exciting topic. A successful warranty program improves customer service KPIs, supports quality management and reporting and overall is fully integrated within the following key areas:
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Service Management
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Sales, Marketing, Distribution and Billing
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Quality Management
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Finance and Controlling
Service Management
Touch points with the service function in field service, depot repair, remote services, require tight integration between the service and the claim process. Service order cost (Materials, services and activities, ...) is partially or fully applicable towards warranty claims, or warranty recovery.
Sales, Distribution and Billing
Contractual agreements, terms and conditions, customer master data, international requirements such as language, currency, date format, etc. are important requirements. Sales is a key component of the RMA process. Process free-of-charge advanced replacements, correctly attribute cost and revenue to sales areas, business units, profit centers. Accurately invoicing of service activities and spares, materials, based on one source of the truth, billing when it is convenient for you, as opposed to at the end of the month... because of whatever external reasons.
Quality Management
The Holy Grail in Warranty is a fullly integrated, smart solution, supporting product quality awareness (think Toyota's recent quality issues) as well as forward looking suggestions to product development (product improvement and innovation). SAP's warranty solution has direct touch-points with quality notifications and quality code systems.
Finance and Controlling
From a financial perspective, a comprehensive warranty system affords your company control over financial aspects that are occuring in parallel to logistic events. Therefore it is important to have real-time visibility into your planned cost and revenue versus actuals. Planned warranty cost per period, warranty accruals, expenses, lead towards controlling profitability. In a nutshell controllers want to be in a position to have short and long term financial visibility into what has been going on in the field, on the shop floor, in the regions and then project the trend analysis into the future to best position their firm in the marketplace. Drill-down into data series and dash-board reporting capability provide phantastic visibility for optimal decision support. Several reporting tools are available for your different reporting needs. In short, supporting your day-to-day up to strategic decision making process.
SAP Warranty Management functionality addresses these issues successfully. Over and above it provides tools to gain visibility into quality and financial aspects of product warranties over time.
Requirements Discussion
The warranty claims process is characterized by sophisticated business rules and strong enterprise integration points.
Typical requirements are:
- Web portals for customers and vendors
- High claim volumes requiring fully automatic claims processing
- Industries with low claim volume may pose high level of data representation requirements, e.g. aircraft engine, complex equipment
- Fast processing and adjudication turn-around-times, understood as execution excellence in customer service, becoming a KPI of the Warranty process
- Ability to set up sophisticated, integrated systems affording a positive warranty account cash-flow
- Data verification across multiple modules and systems
- Designing a flexible claim life-cycle that is adjustable even after go-live
- Identify customer and vendor warranty on different levels of a complex equipment, serialized parts, component within a hierarchy, modules, vehicles
- Identify applicable contractual terms and make T&C operational for claim
- Identify and act on vendor recovery, turning warranty business function traditionally treated as a cost center into a profit center
Manual approval activities occupy agents instead of dealing with customer inquiries or researching interesting claim exceptions.
The following free solution brief helps you gain essential insight into SAP's Warranty functionalities:
SAP Warranty Management Solution Brief
SAP Warranty Management Template
Success Stories
We implemented SAP Warranty Management solutions successfully at Rockwell Collins, Siemens Automotive, Samsung Electronics (SEC), and assisted Bombardier and Pratt&Whitney with their warranty project solutions.
Other consulting services include
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Training
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Supporting road map evaluations
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Business value analysis
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Pre-sales and system product demonstrations