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Warranty Claims Administration

May 07, 2015
Our Warranty Claims Administration case study is available for download Our Warranty Claims Administration case study is available for download

Improving the quality of warranty service whilst managing the costs efficiently.

The Challenge

Our client tasked us with bringing efficiencies to the warranty claims process, reducing headcount, providing a solution to manage peaks and troughs of demand and to add value to their Quality Improvement Strategy. They were looking to improve the quality of the service provided whilst reducing costs by outsourcing the function completely.

The client was receiving some 880,000 warranty claims annually but the reality was that only 25% of this total were being processed based on specific criteria. This in part was due to inaccurate and illegitimate warranty claims. Furthermore, due to an inflexible working environment, time usage was inefficient and therefore administration costs were high. In fact, productivity of individuals had declined by 30%.

The direct result meant that programme administration costs were high. With inefficient use of time, employees had a lot of downtime and in turn, head count was high.

The Solution

As a solution, Impetus Automotive structured a management team to ensure a smooth contract transition and allow for new process to be implemented to drive costs down. The three key areas for focus were:

  • Personnel management meant that one of our experience HR Managers was able to oversee the extensive transfer of personnel whilst ensuring that team morale remained positive during a period of change
  • Through operational management, it was critical that we developed a rapid and comprehensive understanding of the strengths and weaknesses of the team and processes. Post analysis, we were able to work closely with the team to deliver new objectives.
  • Relocation management involved one of our top Project Managers, who was appointed to ensure the smooth transition of the team from the client’s Head Office to our brand new facility.

The Outcome

The outsourcing of the warranty claims processing is a great example of our Business Process Outsourcing capabilities, developing strategy, implementing the process and managing the final operation.

To date, we’ve delivered on the client’s three key objectives they set out to achieve:

By improving efficiencies, we’ve allowed for a 14% reduction in the core team’s headcount.

By developing operational practices, we created greater flexibility within the work force, enabling team members to be reassigned to other targeted activities during quieter processing periods.

To add value to the warranty improvement strategy, we are:

  • Beginning to provide warranty Coach training
  • Improving future accuracy in Dealership warranty applications
  • Developing the IT infrastructure and process to enhance the quality of reporting available for warranty claims


Download the Warranty Claims Administration case study, here:

Contact Keith

Head of Service and Warranty

Keith Vipond

Head of Service, Warranty and Audit

Keith is a qualified Management Accountant with over 20 years automotive experience in Contract Hire & Leasing and Franchised Dealer Management.
Find out more about Keith

Email Keith Vipond