How can you to track warranty for non-serialized parts?

The Challenge of Tracking Non-Serialized Parts

Despite SAP's functionality for tracking parts with serial numbers, non-serialized parts present their own set of challenges. These challenges are not a result of SAP's limitations, but rather the inherent technical difficulty in tracking non-serialized parts. This can be a source of frustration and inconvenience for businesses.

A&D and Defense have special Challenges

Tracking warranties for non-serialized parts in the Automotive and A&D Aerospace and Defense industry can be challenging but is essential to ensure compliance and manage warranty, maintenance and repair costs effectively.

In the next section, we will dive into a range of procedures and techniques that can be utilized to successfully track warranties for non-serialized parts.

The following steps involve both software and business process procedures to make this work. 

1. Document All Purchases: Maintain a comprehensive record of all non-serialized parts purchases via your procurement system, including vendor invoices, purchase orders, and receipt and packing slips. This documentation should include details such as the supplier, part number, quantity, date of purchase, and price. 
   
   This is in your ERP system, such as SAP MM Procurement. 

   As a next action, you have the option to attach a warranty tag to each non-serialized receipt and include it in a register of material documents for goods receipts. This register will be consulted when there is a defect notification to provide the necessary evidence for the warranty claim.
   
   

2. Review Supplier Agreements: Check the warranties and terms and conditions provided by your suppliers. Many suppliers in the Automotive and Aerospace industry offer warranties for their parts, even if they are not serialized. Ensure you understand the terms, duration, and conditions of these warranties, sometimes called PSA - Product Support Agreement. Review PSAs to understand which PSA rules apply to warranty claims and automatically flow-down to the claim.  Within your preferred claim system, like SAP ACS warranty management, you have the ability to incorporate the PSA functionality. Our team has successfully implemented this feature for a previous client, showcasing our expertise in streamlining warranty management processes.
   
   

3. Create a Warranty Database: Establish a database or record-keeping system dedicated to tracking warranties for non-serialized parts. This database should include fields for part information, supplier details, warranty start and end dates, and any specific warranty terms.
   
   

4. Track Warranty Periods: Keep a close eye on the warranty periods for non-serialized parts, as it is crucial to establish reminders or alerts that will notify the appropriate individuals when warranties are approaching their expiration dates.
   
   

5. Regular Inspections and Maintenance: Implement a regular inspection and maintenance schedule for all parts covered by warranties (not only covered by non-serialized of course). This proactive approach can help identify potential claims before the warranty expires, allowing you to request replacements or repairs, or cash refunds as needed.
   
   

6. Warranty Claims Management: If a non-serialized part fails within the warranty period, promptly initiate the warranty claim process with the supplier. Follow supplier's specific procedures for warranty claims, which may involve providing documentation, returning the defective part, or arranging for repairs or replacements.  

7. Documentation of Warranty Claims: Maintain detailed records of all warranty claims, including communication with suppliers, repair or replacement processes, and outcomes. This documentation is crucial for tracking the status and history of warranty claims.

8. Communication: Foster effective communication between procurement, maintenance, and engineering departments. Ensure that everyone involved is aware of the warranties associated with non-serialized parts and knows how to initiate a claim when necessary.
   
   Utilize various channels to submit claims, including email, claim statements in PDF format, and online portals that seamlessly integrate with your ERP and claim system. Do not solely rely on email as the primary method for submitting warranty claims, unless the email is generated, sent, and logged automatically.
   
   

9. Supplier Relationships: Build strong relationships with your suppliers. Clear communication and a positive working relationship can help streamline warranty claims and ensure a faster response when issues arise.
   
   

10. Continuous Improvement: Regularly review your warranty tracking processes and database to identify any areas for improvement. This may include automating certain aspects of tracking or improving data accuracy. This should also include smart dashboard business reporting, and visualizing your data in a business intelligence tool such as SAP Analytics Cloud, or Power BI.
    
    

11. Training and Awareness: Train your staff to understand the importance of warranty tracking and compliance. Encourage them to report any issues promptly so that warranty claims can be initiated as needed.
    
    

12. Quality Control: Implement rigorous quality control measures to minimize the likelihood of part failures. This can help reduce the frequency of warranty claims and associated costs.
    
    

By implementing these steps and maintaining accurate records, you can effectively track warranties for non-serialized parts in the aerospace, automotive or any manufacturing industry, ensuring compliance, minimizing downtime, and optimizing your maintenance and repair processes.

If you are looking for help with your warranty management solution, especially with non-serialized parts, feel free to book a meeting with us to discuss by clicking this button: