Mention warranty compliance and most Parts Managers eyes will roll. Far from an issue of capability, the reason for this response typically lies in the un-winnable battle sensation that accompanies the topic. Across the country, parts and service operations struggle to get the most out of warranties due to the sheer complexity and bureaucracy of manufacturer programs. Many find they’ve had to heavily discount warranty parts in order to keep shelves free from excess. While there are some settings you can automate to make your manufacturer compliance a little less messy, there truly is no match for getting expert support if you’re struggling with warranty compliance. Here’s how.
What’s involved?
Part of the difficulty in discussing manufacturer compliance is the lack of standardization across the industry and market areas. When working with warranties, most Parts Managers are factoring in their specific manufacturer program compliance protocol, state statutes, changing demand, and true need. In 49 states, legislation entitles automotive dealers to be reimbursed by manufacturers for warranty work at retail- though this opportunity is sometimes missed due to overbooked operations.
What experts offer
When getting a grip on your warranties, it’s best to start by consulting the experts. Even if you choose to manage warranties in-house in the future, an expert snapshot on your current operation will provide you extremely valuable insights into the areas that need the most attention. Companies like Dynatrol Software, Armatus, and Better Way offer data-backed services that can result in a massive increase in profits due to warranty reimbursement successes. Once you identify the current issues and future goals, it’s time to implement pricing strategies and activate a matrix that supports this transition to a leaner inventory.
PartsEdge is your dedicated inventory optimization partner and secret weapon for creating a custom pricing matrix that maximize profits. Designed by a Parts Manager and a DMS specialist who saw the gap between the demands on Parts Managers’ and the lack of resources to get everything done, we take all the guesswork out of DMS management and sourcing setup and optimization and, as a result, our clients see on average a 20% drop in total inventory, 15% less idle inventory, a 50% increase in ROI, and a 20% increase in parts sales. That means more of the inventory you really need and less of that you don’t. We’ve been helping Parts Managers make their inventories work better for over 20 years and our testimonials speak for themselves. Want to learn more about how PartsEdge helps Parts Managers and their teams? Send us a message.