The Ins of Outsourcing Warranty Administration
Outsourcing warranty could come down to a matter of survival. Now more than ever today’s automotive dealer must investigate all avenues thoroughly and secure all revenues due to the dealership. Warranty administration services are exception, and there is no good reason to continue doing any activity in-house that can be done by professionals for less expense with larger returns. Warranty processing is an activity that creates distractions for little return, on the most valuable resource, time.
Since the late 1990’s many of the nation’s more successful companies have been improving processes and profitability by determining their key business functions and focusing on them. They found that by eliminating and outsourcing certain skilled processes, like warranty administration, they became more focused on key profit related tasks and were better able to react to market changes. The service department in any dealership is an incredibly complex business that combines technical procedures and processes, building customer relations and trust, as well as warranty administration and relations with the manufacturer.
The very success of the service department depends on how effectively it manages four key elements: