Track 1 Session 10
9:20 to 10:30 a.m. Friday June 16, 2006

Principles of Successful Outsourcing of Warranty and Repair Services

Many companies outsource warranty and repair services with the intent of lowering field replacement cost. This process requires detailed knowledge of the supply chain, a depot-maintenance philosophy and strategic partnering with the outsourced repair depot. This presentation outlines the principles employed and lessons learned of such a partnering effort between a low-volume / high-product-mix customer and a repair services company. Identification and prioritization of parts for warranty and refurbishment are discussed as well as experiences working with Finance, Purchasing, Engineering and International departments. Process measures, results and marketing these services are presented in depth.

Key Words: Warranty Claims, Repair, Outsourcing