Supplier Warranty - Collaborate for Quality


Although the component and part suppliers represent over 60% of product costs, suppliers typically pay for only 10-15% of product warranty costs. Warranty Week has recently reported that the supplier recovery efforts have done little to close the gap between the claims rates of the OEMs and their suppliers.

In addition to the benefits from the cost recovery, bigger payback will result from sharing timely, accurate and full warranty information and collaborating with suppliers to improve component and product quality.

The existing supplier warranty recovery and management processes are inefficient, causing months of delays from dealer claim to supplier recovery. This results in more distrust and blaming for failures, and prolongs the detection-to-correction cycle time.