Morbi pellentesque mauris interdum porta tincidunt neque orci moOEM Experience
Underlying OEM Warranty
The OEM Warranty is generally effective for a period of 12 months and warrants to the original purchaser of its products that they are free from defects in workmanship and materials when operated under normal conditions and accepted industry recommended practices.
Warranty can be defined in a number of ways. For the consumer, warranty fulfils the brand promise. To the OEM it is a liability, the consequence of a negative customer experience, a quality issue and an added expense.
Marketing sees a warranty as a something that creates a competitive advantage. For example, advertisements and or any aspect of a marketing campaign are incomplete without the standard OEM warranty.
Warranty represents the financial side of customer service. Typically between 1 per cent to as much as 17 per cent of top-line revenues can be consumed by warranty and related expenses.
This hair triggered sensitive environment generally means that the OEM’s business user communities respond to competitors’ offerings on a brand-by-brand , market-by-market basis.
Central to the offering is the OEM warranty and past customer experience mainly regarding:
Inappropriate and ineffective repairs
Inadequate and lagging product feedback
Customer dissatisfaction
Reduction in customer loyalty
Availability and competency of an extended warranty offering.
Market Pressures
It is a considerable achievement simply to hold the status quo in the face of considerable upward pressure caused by market demands for higher quality products at lower cost, longer warranty periods, shorter go to market periods and legislative pressures on environmental friendly solutions.
Manufacturers have responded in recent years in addressing warranty costs by using several key strategies:
Tighter Warranty Controls
Better-Built Units
Lower Cost Repairs
However, the pressure remains to reduce costs still further, yet still maintain a competitive offering which enhances and enriches the OEM’s brand.
Clearly the OEM’s Warranty department must maximize its own operational efficiency of warranty claims handling as well as providing more accurate and detailed data than ever to support higher standards in product engineering and dealer repairs.
