To prove the viability of the DPA (Digital Process Automation) + Blockchain for Warranty value chain Pegasystems, Samsung SDS and Tech Mahindra partnered together for a robust reference implementation and Proof of Concept.
Challenge to address
Often regarded as an unavoidable “cost of doing business”, warranty management is one of the most significant expenses for manufacturing companies. Every year, an estimated $50 billion is spent on warranty claims globally. Despite a reduction in the number of claims issued, there has been a noted increase in warranty costs across the supply chain. Organizations must manage both hard and soft warranty expenses to stay competitive.
• Counterfeiting leads to brand dilution, tarnished reputation and financial losses to manufacturers, resulting in an estimated $1B additional spend per year per OEM due to counterfeit parts.
• Onus on the customer / dealer to prove ownership and coverage to OEM via physical invoices, which have to be manually assessed along with the claim.
• Lack of foolproof mechanisms to establish validity of product warranty.
• Opaqueness in the warranty cycle leading to more than 30% duplication of work.
• I dentifying and associating the correct supplier of the part for faster cost recovery.
Samsung’s Nexledger™ Universal blockchain along with Pega’s Digital Process Automation with out-of-the-box -warranty configurable workflows can help streamline and provide end-to-end visibility by securing supply chains and providing track-and-trace capabilities for parts and product warranty.
By integrating Pega Warranty™ strategic application with Nexledger Universal Blockchain platform, we are able to:
• Establish traceability / prove ownership / check warranty validity of an asset with blockchain’ s immutability feature providing ability to link every transaction record to the part.
• Utilize the reusable out of the box portals, workflows and rules engine capability of PEGA for warranty claim processing and improve auto claim adjudication.
The following illustrates the reference architecture for the Warranty value chain that uses the Pega DPA platform, the Pega Warranty™ strategic application that is built on top of Pega DPA and Samsung’s robust Nexledger Universal blockchain technology. The implementation was spear headed by Tech Mahindra’s Pega & Blockchain Practices with support from Pega and Samsung SDS.
The proof of concept implemented, customizes out of the box features of Pega Warranty™ strategic application while leveraging the Samsung Nexledger Universal platform for tasks such as:
• Generation and recording of product or component IDs in Nexledger Universal
• Updating dealer / seller information for product in Nexledger Universal
• Registration of warranty and customer information of the product via Pega Warranty™ in Nexledger Universal
• Inquiry of warranty coverage in Pega Warranty™ with verification from the blockchain
• Automated claim adjudication in Pega Warranty™ with integration to the blockchain for validation
• Warranty Claim information and Supplier Smart Contract in Nexledger Universal
• Parts Return and Supplier Cost Recovery in Pega Warranty™ utilizing the blockchain for part provenance
A DPA + Blockchain enabled warranty management system provides operational efficiencies and a quantified business benefit for OEM’s and manufacturers.
This POC is currently demonstrated at several Manufacturing and Warranty events – such as the 2019 Pega Customer Engagement Summit in Detroit: https://www.pega.com/events/customer-engagement/detroit
1.About Pega DPA : https://www.pega.com/products/pega-platform/digital-process-automation
2.About Pega Warranty™ : https://www.pega.com/insights/resources/pega-warranty
3.About Samsung’s Nexledger™ : https://www.samsungsds.com/us/blockchain-platform/nexledger.html
4.About Tech Mahindra Warranty : https://www.techmahindra.com/warranteaze.html