A few years ago, automotive manufacturer Kia US faced a significant challenge with their warranty claims analytics and audit processes. Burdened with stacks of paperwork and lacking a centralized analytics solution, they sought a modern, online system to enhance their warranty analytics capabilities and extend the solution to their field managers and dealers. Kia decided to implement a Warranty Analytics solution leveraging Optimum’s Analytics system and domain knowledge. There were various users involved, including Kia's 750+ dealerships, field teams, and corporate employees. Warranty Analytics & Audit system became the go-to tool for managing compliance, conducting deep analytics, tracking claims, and auditing activity.
Kia’s field team expressed their need to better analyze dealership warranty performance. At the time, the field would receive an Excel spreadsheet saved on a CD and sent via US Mail. The Optimum solution not only improved the method for Kia to communicate with the field organization, but also provided a more comprehensive view of dealership performance. The tool
empowered the field team to analyze claim activity, extract detailed data for further examination, and provide an action plan for dealership performance improvement. Optimum actively solicited field input during the design phase. This ensured an application which would meet Kia’s needs.
Kia’s dedicated account manager, who displayed a strong commitment to efficient processes, ensured that system updates and enhancements were promptly implemented.
Optimum’s account manager is available all the time, and he’s on it right away. He is very process oriented. We go through the steps and the UAT with everything. He keeps on it to make sure that we get the updates done,
Eric Y., Kia’s Warranty Assurance Manager, commented.
A couple of Kia’s favorite features of Warranty Analytics include:
The Compliance Review is a self-improvement tool to review a dealership’s warranty processing. Dealers may review claims without fear of repercussions, allowing them to enhance their understanding and compliance with Kia’s warranty policies. The tool gives dealers an opportunity to review and assess their own performance. This facilitates a
transparent feedback loop amongst dealers, the dealership service managers, Kia district managers, and Kia’s warranty assurance department.
The solution’s intuitive KPI dashboard empowers warranty managers and field personnel to access relevant data and derive actionable insights effortlessly. It
provides a view of dealer performance, comparisons with peer benchmarks, and identification of critical areas requiring attention. No longer burdened by creating repetitive reports, Kia's warranty managers can focus on important initiatives and promptly address warranty-related challenges. Many Kia dealership service managers proactively review the KPI Dashboard monthly to track performance.
Warranty Analytics is helpful in the sense that it is a one stop shop – everything is in front of me. I save time by not having to piece together data from different sources and putting it all together in a spreadsheet. The system compiles the relevant data and dumps the finished product into a spreadsheet for me,
Eric added.
We do not get much pushback from dealers anymore when it comes to audits as Warranty Analytics captures all relevant data for the auditor to make a valid assessment. We are more efficient since it’s not necessary to contact dealers again for additional information. It becomes a one and done review,
stated Eric.
Before, Kia’s warranty assurance managers would have to input each chargeback item one at a time for audits. With Warranty Analytics there is an audit module
integrated with Kia’s payment processes so now with a simple click of a button within an audit, all chargeback items are put into the payment system at one time. This
simplifies the chargeback process by automating the setup and execution, thus saving significant time and effort for Kia's warranty assurance department. The application also provides a series of reports, which assists Kia in monitoring their audit activity.
Standardization and alignment between dealers and the field team became a reality with Warranty Analytics. Any disputes or misunderstandings related to warranty policies were eliminated, as all stakeholders had access to the same information and reports. The solution serves as an educational platform,
guiding dealers on improving their warranty compliance, pinpointing areas that require attention, and
facilitating progress tracking.
Warranty Analytics has a flexible hierarchical role structure in which users have different authorization levels. The system can address access Business rules. This ensures that dealers have access to their KPIs while preventing them from accessing sensitive operational details. It also allows dealerships to limit access by individual employees. This transparency offered dealers a clear understanding of their standing and performance to the appropriate dealership personnel. Those who embraced the system wholeheartedly have realized the greatest benefits, while the system effectively highlighted deficiencies for less proactive dealers, enabling Kia to address them promptly.
Warranty Analytics seamlessly integrated with other Optimum systems, ensuring a comprehensive warranty analytics ecosystem for Kia. Financial information from
AMOS, Optimum’s Business Management system, flows into Warranty Analytics. Meanwhile warranty metrics, such as Standardized Cost Per SCP VS and vehicle downtime, are exported to
IKON, Optimum’s Dealer Contact Management system, on a monthly basis. The integrations with other Optimum systems have enhanced data accuracy and streamlined reporting.
Kia's partnership with Optimum Info has brought substantial improvements to their warranty assurance and compliance management processes. Today, Kia conducts roughly
200 hundred compliance audits per year using Warranty Analytics. The system’s stability and robust features have revolutionized how Kia manages warranty claim processing and ensures compliance across their dealer network. The Optimum application is designed to be flexible to meet future business needs. With ongoing collaboration and expansion plans with on-site audits, Kia is poised to further optimize their warranty analytics practice.
Eric concluded,
We’re working well with Optimum. We look forward to expanding our alliance and working on the expanded role of warranty.
Diana is a Senior Marketing Associate at Optimum Info, a business solutions company providing tailored software solutions for manufacturers to improve franchise network development and after-sales operations. Utilizing her experience in client engagement, Diana strives to create interesting and insightful articles to engage and inform OEMs.
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