Product failure warranty costs, resulting from poor quality, can often run as high as 5 percent of a manufacturer’s revenue – sometimes equivalent to or exceeding the manufacturer’s research and development expenditure. And when dissatisfaction with quality drives customers away, lost revenues can make that burden even heavier.
Most companies see these losses simply as a cost of doing business. New digital techniques, however, turn flaws and the resulting warranty costs into problems that can be solved – letting manufacturers set their sights on reducing warranty costs down to zero.
Goodbye to Warranty Costs?
Several innovations mean that manufacturers can now aim to eliminate quality problems
Oliver Wyman Ideas App
