By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    construction analytics
    5 Benefits of Analytics to Manage Commercial Construction
    5 Min Read
    benefits of data analytics for financial industry
    Fascinating Changes Data Analytics Brings to Finance
    7 Min Read
    analyzing big data for its quality and value
    Use this Strategic Approach to Maximize Your Data’s Value
    6 Min Read
    data-driven seo for product pages
    6 Tips for Using Data Analytics for Product Page SEO
    11 Min Read
    big data analytics in business
    5 Ways to Utilize Data Analytics to Grow Your Business
    6 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Looking upstream for warranty cost savings
Share
Notification Show More
Latest News
cloud-centric companies using network relocation
Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation
Cloud Computing
construction analytics
5 Benefits of Analytics to Manage Commercial Construction
Analytics
database compliance guide
Four Strategies For Effective Database Compliance
Data Management
Digital Security From Weaponized AI
Fortifying Enterprise Digital Security Against Hackers Weaponizing AI
Security
DevOps on cloud
Optimizing Cost with DevOps on the Cloud
Development
Aa
SmartData Collective
Aa
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
Last updated: 2009/03/12 at 1:54 PM
JamesTaylor
3 Min Read
SHARE
- Advertisement -

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.

- Advertisement -

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

Digital Security From Weaponized AI

Fortifying Enterprise Digital Security Against Hackers Weaponizing AI

10 Ways How Artificial Intelligence Is Changing the Content Writing Landscape
How IoT Can Be Connected to Business Intelligence
Amazing AI-based Image Upscaler From VanceAI
Actionable Tips To Set Up an AI Tech Venture Abroad

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

- Advertisement -
JamesTaylor March 12, 2009
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
- Advertisement -

Follow us on Facebook

Latest News

cloud-centric companies using network relocation
Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation
Cloud Computing
construction analytics
5 Benefits of Analytics to Manage Commercial Construction
Analytics
database compliance guide
Four Strategies For Effective Database Compliance
Data Management
Digital Security From Weaponized AI
Fortifying Enterprise Digital Security Against Hackers Weaponizing AI
Security

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

Digital Security From Weaponized AI
Security

Fortifying Enterprise Digital Security Against Hackers Weaponizing AI

11 Min Read
AI-powered content writing tools
Artificial Intelligence

10 Ways How Artificial Intelligence Is Changing the Content Writing Landscape

8 Min Read
internet of things and business intelligence
Internet of Things

How IoT Can Be Connected to Business Intelligence

6 Min Read
ai improves image upscaling
Artificial Intelligence

Amazing AI-based Image Upscaler From VanceAI

11 Min Read

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

giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive
data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?