Enhancing supply chain operations through effective classification of warranty returns

Author: Teng S Gary   Ho S Michael   Shumar Debra  

Publisher: Emerald Group Publishing Ltd

ISSN: 0265-671X

Source: International Journal of Quality & Reliability Management, Vol.22, Iss.2, 2005-02, pp. : 137-148

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Abstract

Purpose - To show that handling warranty returns is essential in a supply chain for product/process improvement and that the major step in resolving warranty return problems is to correctly classify the returned parts and identify the problem(s). Design/methodology/approach - Demonstrates two classification processes that separate available warranty returned parts into correct categories. Findings - The result of these two processes provides pertinent parties in the supply chain more accurate warranty failure information, so the companies involved can precisely pin-point the source of the failure cause in the products and improve the product's design and manufacturing. Meanwhile, it also resolves potential conflicts in a supply chain and assigns responsibility to the right party to cover incurred warranty repair cost. Its applications can enhance quality and reliability management in a supply chain and streamline the reverse logistics operations in the chain. Originality/value - This paper offers companies an effective procedure in reducing wrongly classified warranty returns and makes root cause analysis of warranty returns more efficient.