The Importance of Asset Tracking in Managing Extended Warranty Contracts

For many businesses, managing extended warranty contracts is a critical but often overlooked aspect of asset tracking and monitoring.

Whether dealing with heavy machinery, specialized equipment, or vehicles, extended warranties provide protection against unexpected breakdowns and costly repairs.

However, the effectiveness of these warranties depends on how well companies track their assets’ performance, condition, and usage. Without reliable data, businesses risk missing warranty coverage, incurring unplanned costs, and shortening the lifespan of their equipment.

Dalos, a leader in IoT-powered asset intelligence, offers businesses the tools to monitor and track their assets in real-time, ensuring that warranties are effectively managed, and service contracts are optimized.

This guide explores how Dalos helps companies reduce the risk of unexpected failures, minimize costs, and improve overall asset lifecycle management by integrating asset tracking and monitoring with extended warranty management.

The Challenges of Managing Extended Warranties

Managing extended warranties can be complex, especially for companies with large fleets or equipment spread across multiple locations. Common challenges include:

• Tracking Warranty Coverage: Companies often struggle to keep track of active warranties, expiration dates, and coverage details. Without this information, businesses may miss opportunities to leverage warranty services when assets fail.
• Monitoring Asset Performance: Extended warranties are often linked to the condition and performance of assets. Without proper monitoring, companies may miss warning signs of potential failures, leading to unexpected breakdowns that may not be covered by the warranty.
• Maintaining Compliance: Many extended warranties require regular maintenance and adherence to specific usage guidelines. Without accurate tracking of maintenance schedules and usage data, companies risk voiding their warranties.
• Managing Multiple Contracts: Large companies with numerous assets often have to manage multiple warranty contracts from different vendors. Staying on top of contract terms, coverage periods, and service requirements can be overwhelming and leaves room for error.

How Dalos Simplifies Extended Warranty Management

By integrating real-time asset tracking and monitoring, Dalos helps companies take control of their extended warranty contracts.

The platform provides real-time visibility into asset performance, automates maintenance tracking, and ensures warranties are effectively managed to minimize risks and costs.

1. Real-Time Asset Performance Monitoring

One of the most valuable features of Dalos is its ability to monitor asset performance in real time. IoT-enabled sensors track performance metrics such as engine hours, fuel consumption, operating temperatures, and usage patterns.

This data gives businesses clear insights into how their assets are performing and when potential issues may arise.

How This Optimizes Warranty Management:

• Proactive Maintenance: With real-time performance data, companies can detect issues early and schedule maintenance before a breakdown occurs. This ensures assets are in good condition and compliant with warranty terms.
• Avoiding Warranty Voids: Many warranties require regular maintenance or adherence to usage guidelines. Dalos ensures companies stay compliant by providing timely alerts when maintenance is due or when assets are operating outside of recommended parameters.

2. Tracking Warranty Coverage and Expiration

Dalos simplifies managing multiple extended warranty contracts by automatically tracking coverage details, service terms, and expiration dates for each asset.

Companies no longer have to manually monitor warranty expirations or service inclusions.

How This Prevents Unexpected Costs:

• Automatic Alerts: Dalos notifies businesses when warranties are nearing expiration, ensuring they can take full advantage of coverage before it lapses, reducing the risk of unexpected repair costs.
• Detailed Warranty Data: The platform centralizes all warranty-related information, including terms, coverage limits, and vendor details, allowing companies to quickly determine whether an asset is covered and what services are available.

3. Managing Maintenance Schedules

To maintain valid warranties, businesses must properly maintain assets according to the manufacturer’s recommendations. Dalos tracks maintenance schedules and alerts managers when maintenance is due, ensuring compliance with warranty terms.

How This Ensures Warranty Compliance:

• Automated Maintenance Reminders: Dalos uses real-time usage data to automatically generate maintenance reminders, ensuring that assets are serviced on time and remain compliant.
• Digital Maintenance Records: Dalos keeps a digital record of all maintenance activities, which can be easily accessed to provide proof of compliance in the event of a warranty claim.

4. Reducing Equipment Downtime

By providing real-time data on asset condition and performance, Dalos helps companies avoid unexpected breakdowns and reduce equipment downtime.

Properly monitored and maintained assets are less likely to fail, reducing the need for emergency repairs and minimizing operational disruptions.

How This Improves Operational Efficiency:

• Fewer Breakdowns: Dalos’ predictive maintenance capabilities allow companies to address issues before they lead to failures, reducing the frequency of breakdowns and extending the lifespan of critical equipment.
• Minimized Downtime: Scheduling maintenance during planned downtimes rather than waiting for equipment to fail helps companies maintain smooth operations and avoid costly interruptions.

5. Consolidating Warranty and Service Contracts

For companies managing large fleets of assets, keeping track of multiple warranty and service contracts can be overwhelming. Dalos simplifies this by consolidating all contract information into a single platform.

How This Improves Contract Management:

• Centralized Contract Data: Dalos stores all warranty and service contract information in one dashboard, allowing easy access to the details of each agreement. This ensures companies stay on top of their obligations and can quickly determine if an asset is eligible for warranty coverage.
• Vendor Coordination: The platform simplifies managing relationships with multiple vendors by providing detailed contract terms and vendor details, ensuring companies can access the right services when needed.

CASE STUDY:

Dalos Helps a Manufacturing Company Optimize Warranty Management

Background:

A large manufacturing company managing a fleet of industrial machinery was struggling with extended warranty management. The company’s frequent equipment breakdowns resulted from missed maintenance schedules and non-compliance with warranty conditions, leaving many repairs uncovered.

In addition, the company also incurred costs for repairs on assets that were still under warranty but had expired without their knowledge.

The Dalos Solution:

By implementing Dalos’ asset intelligence platform, the company gained real-time visibility into the performance of its equipment, automated maintenance scheduling, and centralized warranty management. Moreover, Dalos tracked warranty contracts and alerted the company when warranties were expiring or when maintenance was due.

Results:

• 20% Reduction in Repair Costs: The company reduced repair costs by 20% by ensuring all repairs were completed under warranty coverage.
• 30% Reduction in Equipment Downtime: Predictive maintenance and automated alerts helped reduce equipment downtime by 30%.
• Improved Warranty Compliance: Dalos helped the company stay compliant with warranty terms, preventing voided warranties and unexpected costs.

Business Efficiency and ROI for Companies Managing Extended Warranties

Effective warranty management is essential for reducing costs, improving asset performance, and minimizing operational disruptions. Businesses can leverage Dalos’ real-time asset tracking and monitoring capabilities to manage warranties efficiently, maintenance is performed on schedule, and unexpected breakdowns are avoided.

Key ROI Drivers:

• Reduced Repair Costs: Tracking warranty coverage ensures repairs are completed under warranty, reducing out-of-pocket costs.
• Improved Asset Uptime: Real-time monitoring and predictive maintenance reduce downtime and improve operational efficiency.
• Extended Asset Lifespan: Performing timely maintenance and staying compliant with warranties extends asset lifespans and maximizes ROI.

For companies relying on extended warranties to protect their assets, effective management is crucial for minimizing costs and reducing operational risks. Dalos’ Unified Asset Intelligence Platform offers the tools needed to track asset performance, monitor warranty coverage, and ensure timely maintenance.

By integrating asset tracking with extended warranty management, companies can reduce the risk of failures, avoid costly repairs, and optimize the lifecycle of their equipment.

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