Warranty process guidelines

[flyboy]

Maybe our moderator can help me on this one...

How many warranty claims should a decent administrator be able to process in a given time? I feel my guy is incredibly slow, based on past experience with other clerks, it just seems it takes him forever to process claims. I only have 7 techs, GM store, nothing rocket science here.

I looked at the NADA site and didn't find anyhting there. I wonder if there is a "standard" of how many claims a guy can push thru with a high level of acceptance and low reject rate.

Anybody have an idea? How many does you warranty administrator process in a day? Hour?

Thanks for any inpout...

[Old Irish]

Well, if it'll add any perspective, our "warranty guy" handles, oh, about 350 claims per month. This includes posting credit memos, reconciling the schedules, scrapping parts, etc

Cheers
Doug

[robc]

There are so many variables and different levels of responsibility from store to store that it is tough to set a firm number. Plus some franchises are more difficult than others.

I wrote about this not too long ago in the Service Manager newsletter so let me see if I can summarize those thoughts.

A single GM warranty administrator who is 100% dedicated to the duties of warranty should be able to do $100k in warranty sales a month (that is 25-30 claims a day). GM having the easiest system, everything goes down from there in roughly this order... Ford, Chrysler, major asian imports, major european imports, then the Kias, Isuzus of world until you hit the bottom with Nissan.

The tricky part is time robbed from warranty adminsitration (like filling in for advisors, cashier, phones, etc.) comes at a great premium off of warranty. So if someone spent just two hours a day on other duties, I would expect that they could only get half the suggested amount of warranty work done.

The caveat is, I know really hard working warranty administrators that would say they could do twice that amount and another that would say he couldn't get half that rate through. And I would say for the situatuion they were in both might be right.

It all depends on the people involved and the internal system the dealership has structured.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[This message has been edited by robc (edited 02-16-2005).]

[daponik]

robc, Why do you say the bottom is Nissan? Yes, I work for a Nissan dealer and our warranty clerk handles about $70,000/month in claims. It is a full-time position and she has been doing this for many years. She was recently trained by NNA to input using their new HOD and CPIA systems.

I'll back your point up. Nissan's warranty system is a bear to work with - but do you have any real-world stories or examples you can share with us?

[robc]

See just how much more credible would it have been if I would have put that Nissan is a 70% efficiency rating of GM like I did in the newsletter.

Personal experience, when I look at the process Nissan has my head spins. When I talk to other consultants, their head spins. Convoluted, archaic, overly burdensome are all words that come to mind.

Those times I started to get involved with Nissan processing, I realized that my $1,750/day rate isn't enough to deal with this headache.



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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[daponik]

LOL. Thanks Rob. I take it you've seen how Nissan's warranty system will reject a claim for a part number error for a valid supercession because THEIR system didn't recognize the NEWER part number that THEIR PDC shipped to us? And that's just the tip of the iceberg.

*Dan