Warranty & Forecasting Analysis Can Increase Aftermarket Profits

Oct. 27, 2006
Companies looking to post-sale service as source of revenue.

There are profits to be had in the aftermarket service operation and some companies are finding them. An example provided at an industry show held last week in Las Vegas was Shanghai GM. Using the SAS Warranty Analysis, the company was able to get a handle of its warranty expenses and its aftermarket service operation.

"We are making constant progress and after six months of using SAS, we are still discovering new ways of improving our warranty analysis process," said Nanxiang Gao, Shanghai GM's quality department. "This also has an impact on the efficiency of our after-sales campaigns because now we know exactly how much money is available for after sales." Shanghai GM is a joint venture between GM and Shanghai Automotive Industry Corp.

At the show, SAS announced the expansion of its warranty analysis product. Its new Service Intelligence software suite monitors, predicts and optimizes a company's entire service chain. The suite uses the SAS Warranty Analysis solution by combining it with the forecasting capability of SAS Service Parts Optimization and SAS Service Operations Optimization to connect previously disconnected business processes.

"Post-sales service ranks among the top three priorities for chief financial officers worldwide, and 68% of companies now have a vice president or higher overseeing service performance," said Mark Vigoroso, Aberdeen Group. "As best-in-class companies scale their technology investments, the key thing to keep in mind is to partner with a technology provider that not only provides a point solution to meet their most immediate need, but also provides a flexible platform to build on in the future."

SAS Service Intelligence

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