Managing warranties is executed in eight sub-steps within the ‘Receive’ process step of the

reverse logistics process. They are; receive product, create claim, check warranty coverage,
reject claim if not covered, create work order, schedule repair, create invoice, and process
payment.

The goal of the warranty management process is to make the company more profitable. Choose
the right metrics as a first step to making improvements.

Warranty cost per unit, warranty cost as a percentage of sales, supplier recovery, claims
frequency, and failure rate are five metrics for measuring how cost effective your warranty
management process is.
Most products fail either shortly after being sold or near the end of their useful life. The focus of
the quality control department should be on making sure the product does not fail early in its
lifecycle.

Customer Experience metrics are used to make sure customers are satisfied, which means that
they will be more likely to buy again from you and recommend your products to others.
Customer experience metrics include; Mean Time To Repair (MTTR), Net Promoter Score (NPS),
and Customer Satisfaction.

Benchmarking your score on these metrics against the competition is the best way to evaluate
your performance.

Remember, measuring performance is of no use unless you use it to implement improvement

actions.