Identify emerging trends in defects to reduce warranty and recall costs, maintain brand strength, and improve customer loyalty Manufacturers, on an average, spend as high as 2.5% to 8% of their revenue on warranty costs. Best in class manufacturers have been able to achieve warranty spends as low as 0.5%, underlining the tremendous potential for cost reduction in business operations - from efficient process management as well as product quality improvement. Majority of manufacturing companies limit their warranty business intelligence to historical reporting needs. Manufacturers need robust technology that can monitor & report, provide timely alerts on critical warranty parameters, predict warranty patterns and improve the analysis of scenarios under different warranty conditions. Presenting Sailotech’s Warranty Analytics Solution - a rapid deployment, quick returns remedy to current business challenges. Warranty Analytics solutions use to discover hidden trends in warranty and service records to more quickly identify the emergence of previously unknown defects. Sailotech can transform data into insights to help you proactively address your brand equity resulting from product defects while balancing customer satisfaction with profitability.

1. process analytics technology
Warranty Analytics:
Enabling smarter decisions in intelligent enterprises

2. Identify emerging trends in defects to reduce warranty and recall
costs, maintain brand strength, and improve customer loyalty
Manufacturers, on an average, spend as high as 2.5% to 8% of their revenue on warranty costs. Best in class
manufacturers have been able to achieve warranty spends as low as 0.5%, underlining the tremendous potential for
cost reduction in business operations - from efficient process management as well as product quality improvement.
Majority of manufacturing companies limit their warranty business intelligence to historical reporting needs.
Manufacturers need robust technology that can monitor & report, provide timely alerts on critical warranty parameters,
predict warranty patterns and improve the analysis of scenarios under different warranty conditions. Presenting
Sailotech’s Warranty Analytics Solution - a rapid deployment, quick returns remedy to current business challenges.
Warranty Analytics solutions use to discover hidden trends in warranty and service records to more quickly identify the
emergence of previously unknown defects. Sailotech can transform data into insights to help you proactively address
your brand equity resulting from product defects while balancing customer satisfaction with profitability.
Below is a snapshot of some integral warranty elements and their effect on warranty costs, thus emphasizing the huge
potential for immediate cost savings in the warranty function.
Warranty Elements Potential Impact
Fraudulent claims
(Duplicate claims, part with failure code mismatch, repeat claims for similar failure codes etc.)
3-11% of total claims
Warranty part not returned (or untraceable) 5-10% of total claims
Supplier recovery cost 10-15% of total warranty cost
Part defect costs ~40% of total warranty cost
Administrative overhead costs ~22% of total warranty cost
Typical areas of applying Analytics on Warranty data involves:
• Text mining to identify problem areas, instead of technicians trying to select from hundreds of warranty categories
• Predicting the expected number of claims or cost of claims
• Identify and forecast fraudulent claims
• Identifying issues before they become showstoppers
• What-if analysis such as if we increase the mileage what will be impact on warranty costs
Some of the warranty analytics benefits:
• Tremendous impact on bottom line due to early issues identification
• Prevention of fraud on warranty claims
• Optimized warranty policies for maximum financial performance
• Increase efficiency of support logistics such as optimum stocking of replacement parts or deployment of technicians
• Increased customer satisfaction, product quality & brand reputation
• Reduction in detection-to-correction cycle time;

3. Warranty Forecasting Analytics
Sailotech Warranty Analytics Solutions
Data Integra-
tion
Data Sources
Advanced
Analytics
Analytics
Frameworks &
Tools
Warranty
Improvement
Objectives
Reduce Overall
Warranty Lifecycle
Early
Warning
Field
Service
Data
Claims
Data
Sales /
CRM
Data
Repair
Data
Mfg.
Data
Social
Media
Research
Data
Diversified skill sets (domain, statistical, data)
Define data model for analytics Define frequency for refreshing data
Set up data cleansing rigor
Data virtualization / Data warehouse creation
ERP - mid stream data External Data
Liaise with client IT for data access
Set up relevant extraction infrastructure
Warranty analytics frameworks and models
Access to best in class tools
Flexible engagement Structure
Predictive
Modeling
Root Cause
Analysis
Reliability
Modeling
Warranty Reserve
Forecasting
Reduce Costs Reduce Fraud
Early Issue
Identification
Financial Savings
Warranty Policies &
Strategic Initiatives
Problem Statement Solution Developed Business Benefits
 Warranty claim cost are
becoming one of the major
factor of concern for the
automobile companies due
to higher cost involved &
increasingly more incidents of
consumer coming for claims
under warranty.
 The automobile manufacturers
need a predictive analytics
platform to know more about
future scenarios about the
claims cost so as to plan their
fiscal year budgets & take pro-
active actions accordingly.
 The solution predicts the
warranty cost for different
dimensions like warranty cost
for a region & vehicle models.
 The claim rates of each month
are taken as time series data,
considering Trend, Seasonality,
Cyclicity and some irregularity,
data also includes parameters
like labor hours spent, parts
used, operations performed.
 Modeling Technique : Multiple
forecasting models have been
built using Arimax (Auto
Regressive Integrated Moving
Average with External Variables)
& linear Regression.
 Solution not only predicts
the future claim cost but also
provide multiple forecast at
various dimensions like the
number of vehicles to come
for claim in future in different
vehicle categories, under
different claim types.
 Proactively identifies systematic
error patterns and their
dependencies, hence enabling
to reduce failure.
 Enabling the finance
department to estimate the
future cost of warranty claims,
so to proactively arrange
warranty reserve fund.
 Helps to identify optimal
warranty term based on cost,
improving terms and conditions
for supplier, manufacturer and
customers.
 Helps organizations to plan their
inventory of spare parts & labor
required accordingly.
Data Preparation
Seasonality and Cyclicality Analysis
Predictive Analysis
Time Series Data Analytical Engine Forecasting
Final Outcome analysis
& dashboards

4. USA
8131, Westside Blvd,
Fulton, MD 20759, USA.
sales@sailotech.com
+1 410-443-0096
INDIA
2nd Floor, Cyber Ville,
Hitech City, Madhapur,
Hyderabad – 500081
Telangana, India.
sales@sailotech.com
+91 40 – 69000226
JAPAN
1204, 1-1-23,
Seishincho, Edogawa-ku,
Tokyo, Japan.
sales@sailotech.com
Find us on the Web
Web : www.sailotech.com
Blog : sailotech.com/sailotech-blog
YouTube : youtube.com/sailotech
LinkedIn : linkedin.com/sailotech
Twitter : twitter.com/sailotech
Sailotech focuses in business process reengineering
with expertise in technology driven transformation
of enterprises. We bring value to businesses by
recommending the right ERP. Specializing in complete
integration solutions tailored to fit the specific industry
needs, we can support business ecosystem. Sailotech is
an INFOR and ORACLE Partner. Driven by the passion for
customer satisfaction, we believe in efficiently delivering
promised business outcome.
We make sure that project timelines are met with
utmost transparency and ensure business process
transformation of enterprises through actionable
intelligence. Our objective is to exceed customer’s
expectations by leveraging the skills of our best in class IT
professionals. We are headquartered in Fulton, Maryland,
USA and have branch offices in India and Japan. Our
clients are spread across Hong Kong, Japan, India,
Singapore and USA.
For more information on how you can accelerate cost savings by leveraging
Sailotech’s Warranty Analytics Solution, contact sales@sailotech.com
About Sailotech
We understand that organizations must be able to convert information into insights, insights into actions, and
these actions should lead to positive outcomes. This requires a combination of imbedding analytics across the
organization’s core processes and propagating analytics expertise across the board in order to give scalability to data-
based decision making. We call it Intelligent Analytics.
 Master Data Management
 Business Intelligence
 Intelligent Analytics
 Enterprise Performance Management
Sailotech provides a variety of simple-to-complex analytics services from basic data management to advanced advisory
services, emerging as a partner of choice for enterprises who are seeking deeper insights from the immense data
existing in their business as well as external sources.