Is Warranty Management a positive differentiator for your firm? Or are you challenged by its complexities? Oracle and Tata Consultancy Services took an in-depth look at the results from a recent survey among top supply chain and logistics executives – “Warranty Management: Converting Challenges to Market Differentiators” – to better understand the importance of product warranties in business today. Find out how these executives are responding to the complexities of warranty management, the strategies they’re taking to tackle them and the opportunities they’re uncovering.

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Warranty Management
Converting Your Warranty
Business From a Cost Center
to a Revenue Generator

2. Welcome and Introductions
Moderator: Michael Levans
Supply Chain Group Editorial Director
Stephen Slade
Senior Director, Industries Marketing
Manufacturing Segments
Satish Patil
Head, Warranty Business Solutions
Tata Consultancy Services (TCS)
Tweet @Sladester423
Tweet @TCS_Oracle

3. Returns Policies
Wide Variety of Returns Processes Create Challenge
Consumer Returns
 Repairs via RMA
 Upgrade
 Credit
 Re-purpose
 Warranty return

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Returns Department
Need to Sort Inbound Parcels and Categorize
Challenges
 Insufficient information
 Customer segmentation
 Obsolescence
 Informal policies
 Fraud
What do you think? Tweet @TCS_Oracle with your opinion.

5. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.5
Warranty Survey Q4 2013
What Leaders are Doing to Better Control Warranty
Findings
 75% have a warranty system
 85% process in-house
 55% have a dedicated department
 38% do NOT segment customers
 27% do NOT use RMAs
See the Warranty Survey here

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Warranty Survey Q4 2013
What Leaders are Doing to Better Control Warranty
Revenue Impact
 73% under 5% of sales
 13% over 5% of sales
 14% unsure
Cost Recovery
 25% recovery from suppliers
 57% process manually
See the Warranty Survey here

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Benefits of a Warranty Offering
What Leaders are Doing to Better Control Warranty
Purpose
 77% customer sat/ownership
 58% standard practice
 27% competition offers it
 26% after-market sales
89% say ‘extremely or very important’
Why do you offer a warranty? Tweet @TCS_Oracle with your opinion.

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Benefits of a Warranty Offering
What Leaders are Doing – Leveraging Warranty Data!
 56% improve product quality
 53% improve customer service level
 49% improve sales, service flow tracker
 39% add product value
 37% add marketing/brand value
 35% expand breadth of service offering
 19% monitor IP + fraud
60% say Warranty is a strong or very strong differentiator

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Use Warranty Operations as a Revenue Stream
User: “To Preserve Customer Confidence”
Yes, leverage
warranty
claims to
generate
revenues
Do Not
19% 81%
Do you leverage warranty claims to generate revenues?
Tweet @TCS_Oracle with why or why not.

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Warranty Initiatives Going Forward
What Leaders are Doing – Leveraging Warranty
 Thorough returns analysis
 Monitor product lifecycle
 Design & Mfg continuous improvement
 Better testing & QA pre-launch
 Collaborate on user issues
 Better sourcing for better suppliers
 Invest in new technology & equipment

11. 11
Warranty Improves Customer Centricity
 Reduce call hold time
 Cross/up-sell extended warranty
 Track fraudulent claims
 Improve product quality
 Streamline reverse logistics
 Better product design
 Greater supplier collaboration
 Lower returns cost
Source: TCS MISU ITG/Warranty Value Engine, 2009
Any other thoughts?
Tweet @TCS_Oracle with your ideas.

12. 12
Warranty Value Chain - Process Framework
Claim
Failure
Verification
Claim link
to RMA
Fraud
Detection
Entitlement
Verification
Supplier
Collaboration
Predictive
Analytics
Source: TCS MISU ITG/Warranty Value Engine, 2009

13. 13
Warranty Value Chain - Process Framework
TCS WOPR™
Warranty Operations Process Reference Model
Source: TCS MISU ITG/Warranty Value Engine, 2009

14. 14
Claims Automation & Rules Effectiveness
Typical Scenario
Warranty Business Rules
Reverse
Engineering
Technical to
Business
Language
Gaps in
Warranty Policy
Digitization
Rules
Rationalization
Key Improvement
Steps
Effective Rules
 Business-
Managed
 Scalable
 Configurable
Source: TCS MISU ITG/Warranty Value Engine, 2009

15. 15
Warranty Metrics - Process to KPI Traceability
L1 to L2 Process
Traceability
L2 to L3 Process
Traceability
L3 roll into L2
Metrics
L2 roll
into L1
Metrics
Source: TCS MISU ITG/Warranty Value Engine, 2009

16. 16
Linking Information Across Enterprise
 Measure performance of every link in warranty
 360 degree treatment of warranty claims
 Warranty sub-processes link to enterprise business functions
 Holistic performance coverage
Source: TCS MISU ITG/Warranty Value Engine, 2009
Do you agree or disagree? Tweet @TCS_Oracle.

17. 17
Benefits of Process-Centric Approach
Source: TCS MISU ITG /Warranty Value Engine, 2012
Transformation Agents
 TCS WOPR™ model
 Warranty domain excellence
 TCS work efforts in warranty
 Comprehensive, holistic process coverage
 Ready framework to undertake improvements
 Standardization and benchmarking capability
Key BenefitsCustomer
 Wanted to transform existing
warranty application
 Requirements were insufficient
and focused around claims

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“We have a desire to produce the highest quality product the
first time and our warranty process keeps us aware of our
progress with world class quality.” - Supply Chain Manager, Auto Parts
“Analyzing returns for defects and passing along the
information to manufacturing has improved product quality.”
- Operations Manager, Furniture
“We’re tracking and surveying vendor quality issues and
constantly looking at new vendor technologies and
opportunities for quality improvement.” Corporate Manager, Apparel
Warranty Customer Testimonials

19. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.19
Contact Information
Moderator: Michael Levans
Supply Chain Group Editorial Director
Peerless Media
Stephen Slade
Senior Director, Industries Marketing
Manufacturing Segments
Stephen.slade@oracle.com
Satish Patil
Head, Warranty Business Solutions
Tata Consultancy Services (TCS)
satish.p@tcs.com
Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12
Tweet @Sladester423
Tweet @TCS_Oracle