In this contest, you are expected to build an approach/framework to maximize profits for Original Equiment Manufacturer’s (OEMs) through: 1) Optimizing Warranty pricing (for warranties, extended warranties and service contracts; 2) Minimizing Warranty fraud
- Claims management
- Parts return and Inventory management
- Supplier recovery
- Warranty intelligence
- The client is a leading provider of platforms for Warranty life cycle management to OEMs (original equipment manufacturers). It offers end-to-end Warranty Lifecycle Management Software Solutions to reduce warranty costs, improve claims processing time, reserves. It provides early detection and resolution of flaws and reduced warranty costs.
- Effective warranty and service contract management enable the OEMs to better manage risk associated with warranty and achieve a higher level of customer satisfaction, resulting in improved profitability and competitiveness. A pro-active approach is required to make this happen.
- Two critical aspects that need to be addressed are warranty pricing and fraud.
- Warranty and Extended Warranty Pricing: The expected cost of servicing warranty is factored in to the sale price. So, accurate prediction of the warranty price impacts the price of the product and hence the competitiveness of the OEM. In contrast, extended warranties and service contracts are optional which consumers buy separately. Pricing is also about understanding the market dynamics and the consumer behavior.
- Warranty Claims Fraud: Statistics suggest that 10-15% of claims are fraudulent and being able to identify fraud and the types of fraud will go a long way in reducing costs and improving effectiveness of claims processing.
- The goal of this contest is for solvers to submit an approach note or framework blended with new ideas and perspectives that will help the client in optimizing warranty pricing and minimizing warranty fraud.
- The second phase of this contest (to be launched in near future) will focus on executing upon the best ideas and frameworks using advanced analytics. Participants who provide sound ideas, approaches and best practices will be considered for being Lead Analysts or SMEs( Subject Matter Experts) in subsequent phases.