Saving $53 Million Annually with Global Warranty Solution

Lower Costs and Streamline Operations With a Single Set of Processing Rules

This large automotive manufacturer was interested in reducing overall costs while improving accountability, accuracy and agility in its Warranty operations. To do so it needed to better manage payments and reduce fraudulent claims. The company estimated 8-10% ($17–$19 million dollars) of warranty spend was attributable to inaccurate, duplicate or fraudulent claims each year. In addition, it estimated that 10%-12% of warranty claims were processed incorrectly. Furthermore, the company’s existing Warranty Program, which included 11 different
systems in 4 regions, 29 languages, made it difficult to provide a worldwide-consolidated set of accurate and consistent outcomes.

Business Goals:

  • Reduce warranty claims costs
  • Reduce fraudulent payments
  • Reduce IT support costs
  • Reduce rules maintenance costs

Results:

  • 400% improvement in execution speeds
  • Significantly decreased fraudulent claim payments
  • $53 million in annual operating costs savings
  • Consolidated 11 disparate rule sets into 1