For a manufacturer of complex industrial goods, accurate and real-time information is critical to maintaining a competitive edge. For this reason, our client had identified systems integration as key to its business growth. At the time of this project, the client was working to identify inefficient processes that could be improved.
One such inefficiency lay between the client’s ERP software and its Product Analysis & Reporting System (PARS). This system is effectively the company’s warranty claims management software. By analysing signs of use, the system determines whether customers can have products repaired free of charge. If the product has been used in a way that violates the warranty agreement, then the customer will have to pay for the repair.
But while this warranty claims management software worked on its own, it had no built-in connection to the company’s ERP software, SAP ECC. This disconnect meant that the client’s finance teams had no reliable way of accessing warranty claims data.
In brief, the downsides of this unintegrated warranty claims management software were:
- error-prone and time-consuming manual input of claims data
- difficulty in producing accurate forecasts for warranty payouts
- inability to respond quickly to reported product defects
Recognising these negative effects, the manufacturer decided that SAP ERP integration was needed to turn the situation around.