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The electronics manufacturer, which has more than $40 billion in annual sales and nearly 50 overseas branches, has grown exponentially in recent years. Demand exploded for its mobile phone devices and home appliances. Unfortunately, warranty claim rates also were skyrocketing. With a global network of outsourced Authorized Service Centers (ASCs), the company realized it must directly address claim volume and cost in order to protect its profitability. Quarterly claim rate increases had risen as high as 11 percent, creating concerns about the quality and diligence of the company's claim validation processes. Accenture's High Performance Business research indicates that companies treating warranty management as an asset can create tangible shareholder value and take major strides toward high performance.
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