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Understanding the Real Warranty Costs
Real warranty cost is all of the expenses involved in every aspect of actu-
ally processing warranty claims. Claims processing includes, as a mini-
mum, the entry, review, and acceptance or denial of warranty claims and
the repair or replacement activities that resolve the claims issue, as well as
packaging and shipping. In many organizations, this is a labor- intensive,
time- consuming process that is prone to questions, delays, and back-
and- forth communication, and paperwork between departments within
a company and between manufacturers, distributors, dealers, and repair
centers. Every department, d