Blockchain will transform Post Sales Customer Support
Much of the buzz around blockchain has focused on cryptocurrencies, or the impact the shared, distributed ledger will have on supply chains and counterfeit prevention. But the technology is also expected to have a major impact on services delivery in the electronics industry. Indeed, spending on blockchain applications for “warranty claims” and “equipment and service/parts management” will be among the top 5 blockchain spend categories, according to the IDC .(1)
Services operations harness many resource-intensive, costly, “high-friction” multi-party processes. Managing warranty claims is one example. Equipment manufacturing date, ship and install date, proof or ownership and service entitlement are key data points that must be tracked, certified and accessed in order to provide seamless warranty entitlement and service delivery. By offering a single, shared ledger showing all transactions, approvals and certifications to all parties, in real time, blockchain will enable more efficient warranty entitlement and faster service delivery. Organizations will have access to the kind of data that could enable them to create sense-and-respond service — boosting client satisfaction while lowering costs. They will also have access to a shared audit trail that will make billing and account receivable processes more accurate and transparent, meaning there should be fewer disputed invoices.
Service-parts inventory and logistics processes will also operate more effectively using blockchain.
Services providers spend a lot of time and effort ensuring they have the right parts in the right place at the right time. Blockchain will provide greater visibility into the location and movement of service parts in the global supply chain. Service organizations can use this real-time transaction data to better collaborate and to be proactive in their stocking strategies and planning processes. There are other real-time systems available that can help improve warranty and service planning processes. The benefits of blockchain are the greater levels of trust and visibility across supply chains, consensus on where those parts are, and the immutability of the record for auditing. This means service organizations can react quickly to constantly changing parts inventory and stocking locations.
Service organizations need to focus on client satisfaction ad cost management. Managing parts-quality issues can consume much of a service organization’s time and resources.
The blockchain can hold complete provenance details of each service part: manufacturer, country of origin, production date, batch and manufacturing plant. It can track when it was received (and in what condition), if it has been used and repaired, and when it was returned to inventory. This verified information can be shared securely and efficiently between all parties. The results: faster and more effective response to parts-quality issues across the spectrum. Service part recalls will be limited to lots vs. across the parts network. Also, because provenance and “know your party” details will be readily available to all parties, importing and exporting will be faster and more accurate and it should be easier to comply with regulations. The availability of “know your party” details will improve environmental regulation compliance — a significant and growing concern for manufacturers and service providers.
These are just a few of the ways in which blockchain will save time, cut costs and mitigate risks for post-sales support organizations. What other benefits or use cases do you see?
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Check out the IBM Institute for Business Value Reports on Blockchain and Warranty:
Blockchain Benefits for Electronics
1 IDC. Worldwide Blockchain 2018–2021 Forecast: Market Opportunity by Use Cases. March 2018
