Industry Headlines

IDC Survey: Few Manufacturers Consistently Benchmark Warranty Operations

FRAMINGHAM, MA- According to a recent study published by IDC Manufacturing Insights - Methods and Practices: Warranty Capabilities Maturity Model-while most product companies recognize the criticality of effective warranty management practices, very few companies are addressing the problem effectively.

Key findings include:

  • Most product companies do not consistently benchmark their warranty organizations, with less than 20% of companies even benchmarking internally.

  • Low product quality and poor warranty coverage and repair can significantly tarnish a brand. However, only a little over half of leading companies and less than 20% of laggards use warranty management proactively to improve their brand image.

  • Nearly all (92%) of leading companies are pursuing opportunities to improve accrual management, but only 61% of laggard companies do.

  • Approximately 60% of leading companies employ proactive means to improve warranty performance through the use of fraud detection methods and early quality warning systems. Less than 20% of laggard companies do.

    "Based on our research, the manufacturing industry's ability to drive warranty improvement is minimal," says Joe Barkai, practice director for IDC Manufacturing Insights' Product Lifecycle Strategies research service. "The use of benchmarking to assess performance and implement continuous improvement is disappointedly low and the application of IT tools to manage warranty transactions, perform warranty and quality analysis, and improve financial management is very inconsistent. Until now, the industry has not had a set of best practices to rely upon."

    The significant gaps between leading and lagging companies and the dire need for a robust methodology to improve warranty operations has led to the development of the recently released Warranty Management Capability Maturing Model to help companies assess the capabilities of their warranty organization, develop a continuous improvement roadmap, and accelerate business transformation.
  • Did you enjoy this article? Click here to subscribe to Quality Magazine. 

    You must login or register in order to post a comment.




    Karen Spencer, Clinkenbeard's quality manager, discusses what makes the plant stand out, advice for other plants, and looks to the future.
    More Podcasts

    Quality Magazine


    2015 May

    The May 2015 edition of Quality Magazine includes articles on cloud technologies, depth gages, ISO 9001, digital inspection and cool new products.

    Table Of Contents Subscribe

    Topics to Talk About

    What topics would you like to see Quality cover more?
    View Results Poll Archive

    Clear Seas Research

    qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


    Facebook2015_40 twitter_40px.png  youtube_40px.pnglinkedin_40px.png  GooglePlus_40