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Warranty Claims


Product warranties should provide manufacturers with valuable information to use in improving product quality and customer satisfaction. Currently, the warranty claims process for many organizations is cumbersome, not cost-effective and not customer-focused. Soltec’s strategy is to eliminate the warranty claim process and establish a warranty allowance program for all customers. In conjunction with this program establish quality partnerships with a sample of the customer base to provide technical support services, engineering, and suppliers with data of failures. The organization should establish a warranty allowance based on the previous 12 month warranty history as a percentage of annual sales. The warranty rate is then adjusted monthly based on 12 month rolling sales and warranty activity.

  • Establishing a warranty allowance requires a significant amount of historical data
  • Customers must be educated on the new process in order to completely understand the benefits
  • Customer discipline must be enforced to achieve desired results
  • Additional high level analysis is needed for success
  • Warranty data is required to support the daily activities of consumer relations and technical support services

  • Lower total administrative warranty cost
  • Shortens warranty processing time
  • Improves customers’ cash flow
  • Provides quicker feedback of potential field concerns
  • Eliminates processing individual claim / financial credit transactions.
  • Reduces administrative cost for customers by eliminating the processing of invoice and credit memo for parts under warranty
  • Reduces a number of day to day emotional issues (disputes)-Your organization becomes easier to do business with
  • Improves data integrity and timing for reporting measurements
  • Reduces the amount of postage, fax and phone calls to resolve claims
  • Customers become more of a partner and closer to your business
  • Process changes from transactional focus to analytical


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Soltec, Inc.
671 E. Big Beaver Road,
Suite 205
Troy, MI 48083

(248) 689-7777