Top 5 Challenges to Manage Warranty Claims And Way To Overcome Those Challenges

Intellinet Systems
5 min read

Most of the OEMs consider their warranty claims management department as revenue draining. They think of warranty cost as the cost of parts sold. Also, warranty services have never been at the top priority of OEMs.

The process of warranty claim management is viewed as manually intensive and low productivity task with 0% efficiency. However, in current scenario more and more OEMs are recognizing the opportunity in claim management and how they can reduce cost and serve the best to customers.

Manage Warranty Claims

Today tools and technology are available on finger tips of every person, keeping this in mind OEMs are taking interest in making their warranty department effective and efficient. It goes without saying that OEMs would consider investing in warranty claim management software to improve customer satisfaction and improve parts quality by R&D, but revenue generating and cost generating benefits are overlooked.

Also, for OEMs the thing that matters most is customer service. But problems doesn’t ends here as the reality is after implementing a solution, OEMs still need to face various challenges, as listed below. The thing that is important is, an OEM need to make a right choice in selection of OEMs for their organization.

1- Data Entry Error: In this era of self-driving cars, OEMs are still working through manual methods and entering the same data at 3 or 4 different places? For OEMs eliminating this data entry at several levels is one of the top most challenges, and reducing errors.
The right warranty claims management software is designed in such a way that it doesn’t require providing data inputs at several levels.

2- Customer Loss: When it comes to claim management services, most of the OEMs personnel think it as the biggest challenge, as involves customer service. As an upset customer may become an irritate customer if they felt that their claim is not being handled perfectly or professionally. But communication is the key, having a perfect medium for communication between OEM and dealer, will sort out everything.

3- Eliminate Recurring Issues: Some of the challenges that OEMs face are opportunities for them to prove themselves. What is the way to keep track of customer problems? How do you identify the recurring issues from them? By keeping record of issues occurring and performing R&D on them will help OEM to minimize those issues and hence money saved.

4- Improving Productivity & Efficiency: How can dealers can OEMs stay productive and efficient? By sharing real-time info, no matter where they are present. And this can be possible through warranty claims management mobile app. With this app OEMs will be able to access the info they need with just a click and utilizing that real-time info, they can ensure customer satisfaction and eliminate paperwork. This will improve productivity and efficiency of work.

5- Reporting: Why does it take so long for OEMs to get claim reports from dealers, what is the point of not getting detailed reports on time? All the processes are meaningless if action on them is not taken on time. OEMs need to make quick decisions if they want to improve the whole work chain process.

Replace Your Current Solution As It May Not Be the Right One

A lot of software provider sells themselves as an “all-inclusive” solution. But once you implement and start actually it to complete tasks and manage business, it quickly becomes apparent that they can do a lot but not a lot well. They are very wide in the number of areas they cover, but not very deep in any single area.

In today’s world of technology solutions driving the success of a business, shouldn’t you have the right solution for every part of your business?

The right solution is the one specifically designed for your business processes.

When it comes to selecting warranty claims management software, keep in mind that it should be capable of:

  1. Gathering info about customer and their claim.
  2. Verify that the filed claim is valid or not
  3. Able to process to next step very quickly after validation.
  4. Determine the action taken or required at each step.
  5. OEMs should be able to review the claim process whenever they want.  
  6. Process the refund or replace the part immediately as required.
  7. Close the claim after successfully processing.

OEMs need customized solutions for their organizations, so that it can be prepared according to organization needs. Perfect warranty claims management software should be able to track claim process, specifying who has what authority regarding claim at a given time and what will be the next step. Also, software should be able to notify OEMs and dealers properly at each level, as it will help them in serving customer better.

Besides automating the complete process and providing time-based alerts, software should be mobility enabled that can work from the remote locations also. Many OEMs still rely on paper or PDF’s to gather information from their authorized dealers and authorized dealers use the same method to get info from their onsite team. Unfortunately, such methods don’t actually the people perform their job. They just increase work process time and make the already busy schedule more hectic.

With all of the improvements that the right software can bring, the data that is gathered should be used to support decisions around claim management. This is where the cost savings as a result of using the software can become most apparent. Reports should be instantly available. These reports, combined with photos from the customer and from the dealers, can assist OEMs to identify recurring issues and reduce future errors by addressing the issues quickly and at the same time passing the claim refund as quickly as possible.

All reports should be monitored to show progress toward goals. Many OEMs often ignore reports because it takes so much time and effort to generate the reports and go through them. The right WMS software will put that information at your fingertips, so that OEM will be able to access them anytime.


Claim management is more than just a necessary evil that OEMs must face. It can become an opportunity to grow business by providing excellent service when a customer approaches with claim. The smart way of claim handling will not only make customer happy, but actually it can bring that customer back next time. Warranty claims management software after implementation can reduce a company’s warranty expenses. Having the real-time reports quickly will help dealers and OEMs in making effective and improve decision.

For more details, feel free to get in touch with us at

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