Warranty Analysis Reduces Annual Spend on Warranty Costs for a Transportation Provider

Sep 23, 2016

Business Challenge

Reducing operational costs and facilitating better warranty management.

A leading transportation provider wanted to conduct warranty analysis to reduce operations cost.

Situation: High operational and maintenance costs.

The client was incurring huge operations and maintenance costs for its assets and wanted to find a way to reduce these costs. The client was looking for analytics solutions to analyze and subsequently reduce the purchase cost of extended warranty plans for new vehicles.

Get in touch with an analytics expert to learn how we can help you reduce maverick spend and drive profits.


Warranty analysis and management.

We conducted in-depth analysis on the warranty data for base warranty and extended warranty phases. We set up a statistical model to forecast the vehicle failure and cost associated per unit. The model compared the cost of failure with the extended warranty cost to optimize the spend on warranty.


Reduced annual spend on warranty costs.

The client gained insights on the variation of cost of failure and warranty cost. Based on this, the client was able to reduce annual spend on the extended warranty cost. The client also reduced the cost of leasing, increased sales, and enhanced client satisfaction by passing on its portion of savings.

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