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Warranty Fraud Management : Reducing Fraud and Other Excess Costs in Warranty and Service Operations
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Warranty Fraud Management provides practical guidelines that help companies save money through reduction of fraudulent warranty claims and overbilling. For a typical manufacturing company the warranty cost varies between 1-4% of sales, so warranty cost as such is an important factor. For companies with outsourced warranty service we have seen fraudulent claims and overpayments extending to over 50% of the total warranty cost. Warranty Fraud Management will highlight the methods of fraud, ways to uncover issues and the importance of continuous improvement of the controls to keep up with the continuously evolving misbehavior. On the other hand, setting-up too rigid controls or warranty terms can impact customer satisfaction and increases overall cost in the warranty chain. The book will increase general awareness of warranty fraud -- how fraud is done, the impact of the problem, typical symptoms and process gaps we have seen in diverse companies. Additionally, it will provide a comprehensive framework for a solid warranty management capability -- there is no single silver bullet to tackle the problem but several areas need to be covered. The spectrum of warranty fraud is very wide -- starting from occasional sloppy procedures and over-charging and ending with systematic organized crime, including everything in between. Thus, the right type of actions also differs in different cases.