Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    big data analytics in transporation
    Turning Data Into Decisions: How Analytics Improves Transportation Strategy
    3 Min Read
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Looking upstream for warranty cost savings
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > CRM > Looking upstream for warranty cost savings
Business IntelligenceCRMData MiningPredictive Analytics

Looking upstream for warranty cost savings

JamesTaylor
JamesTaylor
3 Min Read
SHARE

Copyright © 2009 James Taylor. Visit the original article at Looking upstream for warranty cost savings.Kjell Hammerstrom of Sun presented on warranty costs. Product management teams specify warranty term duration and terms of warranties on products while procurment teams negotiate warranty terms with equipment manufacturers (many of Sun’s products are built by a manufacturer like […]


Copyright © 2009 James Taylor. Visit the original article at Looking upstream for warranty cost savings.

Kjell Hammerstrom of Sun presented on warranty costs. Product management teams specify warranty term duration and terms of warranties on products while procurment teams negotiate warranty terms with equipment manufacturers (many of Sun’s products are built by a manufacturer like Qunta, Mitac, Celestica). However the process was not collaborative – products would be released with 1 year warranties where procurement had neogitated a 3 year warranty with the manufacturer. This represented waste and to address this they put together a cross-functional team to manage warranty criteria across the whole product lifecycle.

The idea was to get the lowest total cost for the warranty that was desired. Sometimes this was about negotiating warranty terms with the manufacturer, sometimes it was about agreeing to pay for each repair, sometimes it was about the price of the warranty and so on. A longer warranty with the manufacturer might be good if Sun can sell extended warranties but not otherwise. Similarly, what does the item cost and how often does it fail? Perhaps it is not worth repairing or returning a part for service. This required the development of a tool to manage these calculations – Sun’s Vendor Warranty Calculator. This spreadsheet tool allows the costs of repairs, the likely rate of failure, warranty terms etc to be varied and compared.

More Read

Big Data Fights Crime: The FBI’s Next Generation Identification
Developing a Big Data Strategy Was Never Easier
Data Automation Has Become an Invaluable Part of Boosting Your Business
Q&A for 5 Do’s and Don’ts for Behavioral Segmentation, Targeting, & Interactive Marketing
Find Value in Online/Social Text and Sentiment: Free Report, Conferences

They tried it on 15 products and, in the first 5, they found $2M of opportunities of which they managed to save nearlty $1M a year. This got the initial procurement team engaged and so they developed online training for other procurement teams to use the tool.

An interesting example of getting savings by developing a tool that allows different groups to see the same cost model and manipulate it.

Previous Next


Link to original post

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

big data analytics in transporation
Turning Data Into Decisions: How Analytics Improves Transportation Strategy
Analytics Big Data Exclusive
AI and fund manager software
AI And The Acceleration Of Information Flows From Fund Managers To Investors
Artificial Intelligence Exclusive
sales and data analytics
How Data Analytics Improves Lead Management and Sales Results
Analytics Big Data Exclusive
ai in marketing
How AI and Smart Platforms Improve Email Marketing
Artificial Intelligence Exclusive Marketing

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Integrated Data Among Top Challenges P&G, Kraft and Others Face in Tapping Gartner’s “The Power of Me”

4 Min Read
ai in business
Business Intelligence

Selecting the Right AI Business Model for Your Startup

11 Min Read
AI for browser apps
Artificial Intelligence

AI Advances Drive New Generation of Browser-Based Solutions

11 Min Read

The Moneyball-itzation of Marketing

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?