Case Study
Vehicle and engine maker automates end-to-end warranty management
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Legacy system caused manual application of unreliable data
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New solution provides greater automation for managing supplier contracts and claims
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Multi-year infrastructure overhaul increases business agility
The Business Issue
A leading manufacturer of commercial vehicles and engines’ warranty management technology was anything but cohesive. Legacy applications required manual workarounds. Siloed initiatives were ongoing companywide. And staff operated in firefighting mode, unable to enforce company policy across its third-party network. Even worse, unreliable warranty data couldn’t be used to feed other functions for insight into product or part quality because data from warranty claim, supplier claim, and bench testing performed at the company’s parts return center only existed in silos.
The result? Over 150,000 missed supplier codes in warranty claims processes derailed downstream supplier recovery and the associated revenue.
The Solution
The manufacturer’s long-term vision was an end-to-end modernization of its warranty program. The goal: Improve dealer experience, product quality responsiveness, and compliance posture. Pega Warranty™ Supplier Recovery was chosen to reframe the warranty infrastructure, creating a cohesive platform for fast, efficient claims management and reduced warranty costs.
With Pega, the company has automated tools to manage parts returns authorization for claims payment and quality inspections. The manufacturer can reduce warranty costs by orchestrating and tracking the supplier recovery process. And CSRs finally have the information and tools they need to enforce corporate rules and policies.
The Results
The Pega Warranty™ platform protects the future state warranty program by replacing stacked, disparate solutions that inhibit real business agility.
Pega’s integrated warranty framework provides real-time control and critical linkage between the warranty claim, supplier claim, and bench testing performed at the parts return center. The manufacturer now:
- Better manages supplier part quality and reliability
- Automates the settlement processes (invoicing, chargeback, and payment)
- Sees $12 million yearly in increased recovery of warranty spend from the expanded pool of suppliers