Prevent Warranty Fraud for Centrifugal Pumps
by Reemi Shirsath Chief Operating Officer
A Centrifugal Pump Manufacturer once admitted that only, ”1 out of the 100 pumps they manufactured lasts 6 months without warranty claims.” This in spite of maintaining the highest level of product quality, reliability, and testing of all pump assemblies prior to shipment.
This comes as no surprise as it is estimated that currently manufacturing and material supply businesses are paying about 3%-7% of their total revenue to fund warranty claims that arise out of abuse or misuse of the product or parts. In addition to claiming revenue, such inauthentic usage also claims labor costs in repairing or replacing such products.
Since most Centrifugal Pump manufacturers have no validated system to detect and prove misuse by the user they spend billions annually paying into warranty frauds. Some of the common problems that most Centrifugal Pump Manufacturers/ Rentals face due to lack of Authentication technologies to prevent warranty Fraud are:
Loss of Brand Value:The stronger the brand’s reputation and/or quality guarantees the higher the risk.
Product Recall/ Removal/ Dumping:Leading to revenue loss.
Created on Oct 29th 2018 00:24. Viewed 138 times.