Smart Extended Warranty Companies Are Reducing Claims Cost With Remanufactured Parts For Consumer Products

Smart extended warranty companies are reducing claims cost by using remanufactured parts to reduced their claims cost when the original equipment manufacturer (OEM) part needed for an extended warranty claim repair is no longer available (NLA). Without remanufactured parts extended warranty companies would have to purchase the warranty holder a new product as a replacement to fulfill the extended warranty obligation since they can’t complete the repair without the parts that are needed for the repair. The extended warranty company not only has to purchase, deliver and maybe even install a new product. They also have to remove the unrepairable product. A good warranty company will then sell the broken product for salvage for the parts to be remanufctured and reused for future warranty claims. The whole product replacement is a long complicated process that is very expense, so finding that remanufactured part is in the best interest of the warranty company. The cost of  remanufactured parts is very low compared to the purchase of a replacement product.

Remanufactured parts are nothing new in the auto industry. Most of you in my age group might remember replacing a car starter, alternator, or brake pads with remanufactured parts at half the cost of the OEM part as long as you return the core. Today remanufactured parts are found in all consumer goods from appliances, electronics, computers, tablets and mobile phones. These remanfactured parts tend to have the same or better warranty then the OEM parts, so it is a level of comfort for the warranty holder.

DRK Resources Tech has a dedicated practice and consultants to help warranty companies select and integrate your claims warranty platform to the major oem and remanufactured parts suppliers.