Warranty Claim Best Practices
FASTER, BETTER, MORE COMPLETE!
AWDA’s Recommended Best Practices for Processing
Warranty Claims in the Traditional Aftermarket
Repair shops, parts manufacturers and warehouse distributors have consistently identified the processing of warranty claims related to damaged or defective parts as a major source of frustration, inefficiency and cost. The Automotive Warehouse Distributors Association (AWDA), its Manufacturers Advisory Council (MAC) and the Car Care Professionals Network (CCPN), have combined forces to develop a set of
Best Practices that can help improve efficiency and reduce the cost of processing claims in the traditional aftermarket. AWDA’s Best Practices are designed to provide the following:
SIMPLIFICATION In today’s traditional aftermarket, repair shops and distributors are sometimes forced to deal with multiple forms for processing claims. AWDA’s Best Practices relies on a standard claim form that includes all the essential information required by manufacturers and distributors to understand and process repair shop claims.
STANDARDIZATION Adherence to AWDA’s Best Practices will minimize or eliminate redundancies in the claim processes used by the various parts manufacturers. The familiarity of a standard form and process will drive an increase in the accuracy and completeness of initial claims – allowing manufacturers to focus on analysis and response.
COST CONTROL The aftermarket industry wastes millions of dollars each year compensating companies for parts that are not broken or defective, delaying compensation for legitimate claims and sorting through complex and confusing claims processes. These additional costs are borne by every partner in the supply chain, including the end customer. Use of AWDA’s standardized processes, enhanced and complete communication, and strict timetables can reduce the incidence of bogus claims, delays in compensation and incomplete data related to the claim.
ENHANCED COMMUNICATION Manufacturers need to know what went wrong with their parts. Was it truly defective? Improperly designed or installed? Damaged in shipping? The repair shop is the best source for this information. Conversely, shops want to avoid similar problems in the future. Was the part correct for the application? Did they install it properly? If a defect was present, when/how will it be remedied? Manufacturers can provide this information. By opening channels of communication between manufacturers, shops and parts suppliers, vital information can flow, leading to better products and customer service for the motoring public.
TIMELINESS Repair shops are always pressed for time. They require speedy action when damaged or defective parts are encountered. Manufacturers want to know about damage or defects quickly, so future problems can be avoided. Distributors want to process claims quickly so their shop customers are
compensated and can get on with the business of servicing vehicles. By adhering to the response times recommended in AWDA’s Best Practices, all supply chain partners can ensure that necessary information is received and appropriate action is taken in a timely manner.
EFFICIENCY The goal for AWDA’s Best Practices initiative is efficiency. Efficiency in claim applications by shops, efficiency in claim processing for distributors, efficiency in claim response by manufacturers, and efficiency in the flow of vital communication up and down the supply chain.
For more information related to AWDA’s Best Practices for
Processing Warranty Claims, contact Larry Northup at 301-654-6664
or e-mail: firstname.lastname@example.org.
For a list of companies that support AWDA’s Best Warranty Claim Practices, Click here.