How Extended Warranty Companies And Warranty Third Party Administrators Are Using A Parts Bidding Process To Reduce Claims Cost

Smart extended warranty companies and extended warranty third party administrator are using existing part suppliers parts price and availability web services to reduce their claims cost by making parts suppliers bid against each other on their lowest parts cost realtime. Orders will go to the parts supplier with the lowest cost and best availability.

To utilize a parts bidding process you need to modify your existing claims or 3rd party service management system to be able call multiple parts suppliers price and availability web services realtime when parts are needed for a warranty claim. When your application receives all the web services price and availability response data from all your parts suppliers have your system select the parts supplier with the lowest cost and best availability and use their parts ordering web service to order the parts.

From a IT technical standpoint the parts bidding process is not that complex to develop since it is very easy to consume a standard web service from any application or platform. The biggest challenge is for the warranty business owners of the claims and parts ordering process to definethe business rules, business process, and business requirements of this new bidding process. These rules, process, and requirements can be very simple or complex to develop depending the maturity of their business, existing systems and processes.

Think about how this same bidding process can be used by your warranty service providers to bid
on their lowest hourly rate or fix bid amount to make a service call based on an automated service
dispatch.

Please contact DRK Resources Tech on how we can help you with a warranty parts bidding process
and system.