If your business relies on manufacturer warranties to replace broken parts and apply repairs, it’s important to have a warranty reimbursement strategy in place. The right strategy can save you time, money, and effort – and ultimately help your business sustain its profitability while keeping your machines in good working condition.
So what steps can you take to get more consistent warranty reimbursements?
Read the Warranties Carefully
Your first job is to be as prepared as possible. It’s important to evaluate your warranties carefully and understand what they cover. If the warranty isn’t comprehensive, or if it has strict conditions that prevent you from taking advantage of it realistically, it may be worth the time and effort to select a different manufacturer. Otherwise, your increased knowledge of how the warranty works will allow you to take advantage of it to its fullest extent.
Consider:
? Costs. Some manufacturer warranties come bundled with the products and machines that you’re buying. Other warranties, including those offered by third parties, offer extended protection in exchange for additional fees. Make sure you analyze these extra costs and determine whether they are worth the investment.
? Duration. Different warranties offer different terms of coverage. Certain elements of your machine may be protected for only a year, while others have a limited lifetime warranty protecting them. The duration is especially important to know, so you can plan for maintenance and inspections when the warranties are about to expire.
? Coverage. What exactly does the warranty cover? It’s likely pretty obvious which mechanical systems and which parts are covered by the warranty, but what types of damage are covered? For example, if the damage is deemed to be a natural consequence of wear and tear, with the warranty still kick in? What about if somebody accidentally damages it?
? Claims. What is the claims process like? Assume that one of your parts is going to fail and that you’ll have to get a warranty reimbursed. How would you submit evidence and how long would it take to get that reimbursement?
? Company reputation. Just because the warranty makes a lot of promises doesn’t mean you can guarantee those promises will be met. Make sure to research the reputation of the company offering it before counting on any warranty.
Use the Right Software
The right software platform can almost instantly boost your warranty reimbursements. Software is useful for a number of reasons, including:
? Documentation. Management software will allow you to document all your warranties and keep them in one place. You can employ an intuitive system of organization so that you can quickly and easily pull up information related to any warranties that apply to your business. This is also helpful for answering your questions and streamlining the claims process when you need it.
? Reminders. Do you know when your warranty is going to expire? If you’re relying on memory, you probably don’t have an answer. But good software will issue reminders when warranties are about to expire, so you can perform the maintenance and inspections necessary to take the fullest advantage of those upcoming expiring warranties.
? Communications and claims. Sometimes, this software can also help you with the communication and claims process when requesting warranty replacements or reimbursements. It may help you collect evidence related to your claim and send it to the appropriate company.
Conduct Regular Inspections
Automatic reminders are nice for triggering inspections when a warranty is about to expire, but you should have regular inspection processes in place anyway. Make sure you’re inspecting your machinery and equipment regularly and that you’re complying with all advised maintenance items.
Analyze Your Efforts and Improve
Finally, make some time to analyze your efforts and improve your approach to warranty reimbursements. Take a look at:
? Internal processes. How much time and effort are you spending on documenting your warranties, inspections, and claims? Are there any potential reimbursements that you’ve missed? Or are there processes that could be streamlined to save time in the future?
? Claims approvals/denials. How many of your claims have been approved? How many have been denied? And what can you learn from these experiences? For example, were you missing any pieces of documentation for one of your claims? Did a manufacturer deny a claim because of the type of damage sustained to the part?
? Cost savings. What other ways can you find to save money in this process? For example, can automation save you manual effort?
Warranty reimbursements may not make or break your business, but you shouldn’t underestimate their financial influence, either. Staying on top of your warranties and extracting more money from them can improve your bottom line, keep your machines in better condition, and make your entire fleet safer as well.
