Warranty Administration

 

"Happy New Year"

Execution

Meanings:  Implementation, performing of something, carrying out of legal provisions.

These are just a couple of definitions of execution according to the dictionary.  This is something we attempt to do everyday in our dealership and more specifically in each department.  Lack of execution and communication typically lead to disaster, such as loss of volume, profitability and even customers.

For 2012 I would like to focus on each department, and in taking a step back, recognize what we need to focus on to assist our employees with better execution and carrying out their duties and responsibilities to eliminate the above mentioned disasters.  Yes we may even have to train them more effectively by means of outlining what it is we expect from them on a daily basis, and more importantly share with that employee the basis for measurement and inspection of their duties and tasks.

I want to start by outlining duties and responsibilities of our warranty administrator. Unfortunately this employee is forgotten and left on their own in most cases.

Many dealerships have difficulty with the reimbursement process of warranty claim administration. Most often this is due to a lack of training, high personnel turnover, confusion over policy, and poor documentation. As a result, transactions go uncollected, get tied up in receivables, and are not compliant, which may lead to costly chargebacks.

Since a substantial amount of the dealership's money is generated through warranty administration, timely processing of warranty transactions, and, consequently, speedy payment depends greatly on the performance of those involved. Warranty administration is more than simply submitting repair orders. Dealerships should have an experienced individual who is responsible for collecting valuable warranty dollars while maintaining compliance with the various manufacturers' policies.

Take a look at your staff's experience, workload, and priorities. If your dealership does not have a devoted, well-trained, and capable warranty administrator, your warranty operations may not be getting the attention it deserves.

With that being said lets review the first 3 videos and get some ideas as to defining what the warranty administrative person is responsible for.  And of course the key to these duties and responsibilities will be the implementation of what you want accomplished in your dealership!!