Selecting 3PL Service Provider for Warehouse Management
Global business models are rapidly changing. Shorter life cycles of products and new business need exert pressure on Supply Chain managers to keep pace with the new scenarios. They are often faced with the target to reduce logistical costs and establish new supply networks. It has now become a common practice to outsource all logistical […]
Ageing Populations in the West and their Impact on Healthcare Management
Shock of Gray The term shock of gray refers to the phenomenon of the western societies having older people as a percentage of the total population than the younger people. in other words, the shock experienced by having more retirees and those over 70 years of age and the graying of the population are expected […]
Quality Management vs Quality Control
Project Management is the art and science of managing projects with emphasis on quality, cost and time. If we take the aspect of quality, this is one of the factors of the “triple constraint” that govern the art of project management. Quality is defined as the degree to which the project meets the requirements (PMBOK, […]
Business Process Re-Engineering – Meaning, its Need and Technology
Hammer and Champy’s concept of Business Process Re-Engineering depends on harnessing technology to optimize processes as its main driver. To understand why technology is imperative for BPR, let’s first review what BPR does. What is BPR? “BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures […]
Going From People Driven To Process Driven
A process driven organization has certain obvious advantages over a people driven organization. Many old fashioned entrepreneurs still prefer to be people driven for the fear of losing control over their organization. However a large majority still aims as process oriented as the ultimate way to create an organization. Many have tried and failed because […]
Warranty Management had been traditionally viewed by companies as a cost of doing business. The costs of warranty management were found to be costing between 4 to 5 percent of the total sales revenue of the company per annum and were considered to be the cost of providing customer satisfaction and as an opportunity to building customer relationship.
However over the last few years, many organizations have realized the underlying value that can be realized in this area. Today Warranty Management is considered to be a separate revenue stream. The process of Warranty Management has evolved over a period. The benchmarking of best practices have led to reduction in cost of service delivery of parts with increase in customer satisfaction and an independent revenue stream of warranty services.
Warranty is a statement of assurance or undertaking issued by the manufacturer of a product concerning the performance of the product and parts supplied by him by way of sale transaction to the customer, for a certain period as stated in the Warranty Card accompanying the product.
In other words, it is a performance guarantee for the product given by the manufacturer. In case of any poor performance due to the nonperformance of any part or defect in any part of the product, will be made good by the supplier/manufacturer with either replacement of the part or product or repair of the product.
Warranty Management is today a separate function of Service Parts Management Stream in the organization. Service Parts Managers are P & L heads of their department and the entire business unit functions as a profit center with its revenue and cost budget.
Service Parts Management Teams and structure are the Service Support Delivery owners and function as primary contact points with the customer. At the first level Service, support teams comprise of Customer Desk, which is the first point contact for the customers to register the service request. Technicians and Engineers as front end site supports and second point contacts to the customers. Parts Support Managers oversee the functioning of the operations and take responsibility to close calls and for delivery performance.
The entire business process and workflow management are driven by the Internet and e-commerce enabled system application that generally consists of the following modules:
Logistics Service Management and Parts Supply Chain Management processes are driven outside the above system, managed by 3PL service providers and Logistics teams.
Service Parts Teams are supported by a team of Subject Matter Experts. Escalation processes determine the nature of technical support required to be assigned and timelines for service issue closures.
Parts Procurement and Logistics may be handled by a single department or by separate teams depending upon the volume of business and the management structure.
These functions manage parts procurement functions, inbound logistics, parts warehousing and distribution on the outbound cycle.
Reverse Logistics functions managed by the team involve - Parts collection, parts segregation, inventory holding of defective parts, parts repair, warranty replacement with OE manufacturer, Re-Export, and Waste disposal or Scrapping functions.
Warranty Management is Cross Functional Team Effort
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