Managing Automation - June 2008 - (Page 44) [JUNE 2008] Transformation Integration TechWatch Industries [ TRANSFORMATION ] Regulations and tough economic times are turning warranty management into a strategic discipline that, if done right, can become a revenue engine for manufacturers. BY STEPHANIE NEIL BUILT to LAST hat Mack truck barreling toward you on the highway has been built to last. Behind that big, shiny grill — reflecting off the rearview mirror of your modest SUV or sedan — is an engine that has a 250,000-mile warranty and a half-million-mile major component warranty. That’s a standard service contract for the Mack, owned by Volvo Trucks, says Ken Culver, North American director of warranty, quality, and reliability. In addition, the Volvo Truck cabs have a 1-million-mile corrosion warranty. That’s a lot of miles of wear and tear. “So it’s always been one of our top priorities to identify warranty risk,” Culver says. However, until about three years ago, the Volvo Trucks North America group, like many manufacturers, could only wait to react to warranty claims. Taking corrective action after the fact is a costly proposition, both financially and in terms of customer loyalty. So Volvo, the parent company, invested in analytical software that could be used globally on top of existing warranty data to identify emerging trends, develop internal key performance indicators, and even identify new revenue streams that could result from expanding the breadth of extended warranty coverage on parts. Now, Volvo considers warranty management a unique opportunity that can transform aftermarket service into its own profitable business. “We’ve grown from selling less than 10% of our trucks with some sort of extended [warranty] coverage to over 50%,” Culver says. Like Volvo, many manufacturers, have always considered warranty management important, but not critical, to business. But that’s rapidly changing. As manufacturers attempt to rein in warrantyrelated costs and respond to new consumer protection regulations, many are implementing a new ma June 44 2008 Photo courtesy: Volvo
Table of Contents Feed for the Digital Edition of Managing Automation - June 2008 Managing Automation - June 2008 Contents Take 1 SAP Cites Functionality, Cost Structure in Modified On-Demand Product Rollout Dassault Exec Predicts More PLM Consolidation The Blackberry Goes Native with SAP CRM QAD Brings MDM In-House with FullTilt Buy Power Experts Look to End Voltage Sags The Progressive Manufacturers Notes Cover Story: Playing the Globalization Game to Win Special Report Integration Transformation Industries Product Scan Advertiser Index Next Managing Automation - June 2008 Managing Automation - June 2008 - Managing Automation - June 2008 (Page Cover1) Managing Automation - June 2008 - Managing Automation - June 2008 (Page Cover2) Managing Automation - June 2008 - Contents (Page 3) Managing Automation - June 2008 - Contents (Page 4) Managing Automation - June 2008 - Contents (Page 5) Managing Automation - June 2008 - Take 1 (Page 6) Managing Automation - June 2008 - Take 1 (Page 7) Managing Automation - June 2008 - SAP Cites Functionality, Cost Structure in Modified On-Demand Product Rollout (Page 8) Managing Automation - June 2008 - Dassault Exec Predicts More PLM Consolidation (Page 9) Managing Automation - June 2008 - The Blackberry Goes Native with SAP CRM (Page 10) Managing Automation - June 2008 - The Blackberry Goes Native with SAP CRM (Page 11) Managing Automation - June 2008 - QAD Brings MDM In-House with FullTilt Buy (Page 12) Managing Automation - June 2008 - QAD Brings MDM In-House with FullTilt Buy (Page 13) Managing Automation - June 2008 - QAD Brings MDM In-House with FullTilt Buy (Page 14) Managing Automation - June 2008 - Power Experts Look to End Voltage Sags (Page 15) Managing Automation - June 2008 - The Progressive Manufacturers (Page 16) Managing Automation - June 2008 - The Progressive Manufacturers (Page 17) Managing Automation - June 2008 - Notes (Page 18) Managing Automation - June 2008 - Notes (Page 19) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 20) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 21) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 22) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 23) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 24) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 25) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 26) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 27) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 28) Managing Automation - June 2008 - Cover Story: Playing the Globalization Game to Win (Page 29) Managing Automation - June 2008 - Special Report (Page 30) Managing Automation - June 2008 - Special Report (Page 31) Managing Automation - June 2008 - Special Report (Page 32) Managing Automation - June 2008 - Special Report (Page 33) Managing Automation - June 2008 - Special Report (Page 34) Managing Automation - June 2008 - Special Report (Page 35) Managing Automation - June 2008 - Special Report (Page 36) Managing Automation - June 2008 - Special Report (Page 37) Managing Automation - June 2008 - Integration (Page 38) Managing Automation - June 2008 - Integration (Page 39) Managing Automation - June 2008 - Integration (Page 40) Managing Automation - June 2008 - Integration (Page 41) Managing Automation - June 2008 - Integration (Page 42) Managing Automation - June 2008 - Integration (Page 43) Managing Automation - June 2008 - Transformation (Page 44) Managing Automation - June 2008 - Transformation (Page 45) Managing Automation - June 2008 - Transformation (Page 46) Managing Automation - June 2008 - Transformation (Page 47) Managing Automation - June 2008 - Industries (Page 48) Managing Automation - June 2008 - Industries (Page 49) Managing Automation - June 2008 - Industries (Page 50) Managing Automation - June 2008 - Industries (Page 51) Managing Automation - June 2008 - Product Scan (Page 52) Managing Automation - June 2008 - Product Scan (Page 53) Managing Automation - June 2008 - Product Scan (Page 54) Managing Automation - June 2008 - Product Scan (Page 55) Managing Automation - June 2008 - Product Scan (Page 56) Managing Automation - June 2008 - Product Scan (Page 57) Managing Automation - June 2008 - Product Scan (Page 58) Managing Automation - June 2008 - Product Scan (Page 59) Managing Automation - June 2008 - Product Scan (Page 60) Managing Automation - June 2008 - Product Scan (Page 61) Managing Automation - June 2008 - Product Scan (Page 62) Managing Automation - June 2008 - Product Scan (Page 63) Managing Automation - June 2008 - Advertiser Index (Page 64) Managing Automation - June 2008 - Advertiser Index (Page 65) Managing Automation - June 2008 - Next (Page 66) Managing Automation - June 2008 - Next (Page Cover3) Managing Automation - June 2008 - Next (Page Cover4)
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