Consulting case studies

Mar 01, 2014

Putting a major dent in warranty costs with realtime data analytics

A global auto manufacturer tapped into vehicle level data to collect, combine and analyze information, resulting in millions in reduced warranty costs.

Client challenge

A leading global automotive manufacturer realized that its warranty costs were out of control because several of the business functions across the organization, including finance, sales and marketing, quality, and engineering, were unable to share data and make timely tactical and strategic business decisions related to emerging warranty and quality issues. The main operational obstacle was that they lacked real-time consolidated data and the reporting and analytics tools needed to drive insights, reduce costs and improve quality.

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PwC's solution

The Vice President of Quality realized the opportunity to enhance the brand, improve quality and save cost by capturing vehicle-level data for analysis, decision making and action. PwC leveraged its experience in the global automotive industry to assist the company in defining and implementing the solution. The resulting quality analysis system, which now has users in the Americas, Asia Pacific, Europe and the Middle East, consolidates vehicle build, sales, warranty, and diagnostic data from multiple applications. It collects raw diagnostic data from dealership garages and GPS/telematics- equipped vehicles, processes that data into a usable format, and provides detailed analytical reports in near-real time.

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Impact on client's business

PwC helped the company take the initiative from strategy through execution, designing, developing, testing, deploying, and maintaining multiple data repository and Business Intelligence (BI) applications. For the first time, the company enjoys near real-time visibility to data at a VIN level. From inception, the solution has consistently reduced warranty costs by over five percent per year, a significant savings in real dollar terms.

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"Within six months of launching the new warranty system, the system had paid for itself..."


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