If your company isn’t tracking warranty analytics, you’re missing an important opportunity to improve your bottom line. In fact, warranty metrics should be as vital to your daily operations as a motherboard is to your laptop.
Just as a motherboard connects the most crucial components of a computer, so will a regular, thorough review of warranty analytics help you improve warehouse performance. It doesn’t matter if that warehouse is your own or a partner’s, warranty analytics will help you monitor and fine-tune a host of metrics that impact your bottom line.
3 Warranty Metrics You Need to Know
Warranty analytics let you know where your company stands in a variety of ways. These numbers help you spot trending issues before they grow into full-grown monsters and shine light into dark corners you didn’t know were hiding problems.
The three most important warranty metrics to know are:
- On-Time Performance (OTP), which measures how often and how quickly replacements parts are delivered to meet standards set by the service level agreement (SLA)
- Dock to Stock (D2S), which measures how quickly inventory becomes available for order fulfillment
- Inventory Accuracy, which measures how well your electronic records match the physical product on the warehouse floor
Let’s look at how each of these analytics can be used to improve your bottom line.
On-time performance (OTP) remains the most important metric impacting customer satisfaction for your end users. That’s because companies like Flash Global are often processing orders for parts that are needed to fix equipment failures. By measuring OTP, your company ensures that delivery expectations are met and helps to defuse a negative customer experience.
Dock to Stock
Actively tracking and managing your dock-to-stock (D2S) numbers ensures your inbound shipments and putaway times are optimized and accurate. This in turn lets you understand whether products are available for replacement orders as needed.
D2S also allows you to keep process times below 24 hours, which helps you accurately manage lead times in your planning tools.
Inventory accuracy forms the bedrock of any warehouse logistics operation. If you don’t know which parts you have, and where those parts are located, you can’t fill orders in a timely manner.
Inventory accuracy ensures each order can be fulfilled and helps you maintain lower inventory levels, thus lowering costs and maximizing profitability.
Capturing Warranty Analytics
To capture these metrics, you may have to invest in technology, or partner with a company that uses computerized product management, RFID chips or barcodes to bring visibility to your supply chain’s efficiency.
However, the rewards for such investment will pay off as you being to track inventory consistently, correct mistakes quickly and reduce errors. Eventually, you’ll find that the greater visibility offered by warranty metrics will help you maximize profitability through lower operating costs, greater inventory control and happier customers.
Need help improving OTP, D2S or inventory accuracy? Flash Global is here to help. Contact us today so we can help keep your customers happy after the sale.