Warranty Management: Developing a Strategic Advantage

Today, it seems that everyone is talking about improving the quality of customer engagement.

Use Warranty as a Customer Engagement Touchpoint!

There are many possible engagement touch points: have you considered your warranty operation as an opportunity to enhance your relationship?.

Back in the day, warranty was introduced as a tool to attract customers. Companies wanted to show buyers that they were willing to guarantee their products.  Soon, the idea caught on and everyone was providing a warranty on their products and.. home builders were no different.

Home builders found, as did others, that managing warranty was a task in and of itself.

Claims management, vendor logistics,... before they knew it, warranty seemed to be a monster that had a life of its own.

Today, however, warranty management, if properly conceived and administered, offers an opportunity to increase your strategic advantage.  It can improve customer engagement and, through today's social media outlets, provide a direct customer voice.  What home shopper wouldn't be encouraged to see a Facebook post highlighting a successful warranty claim?

Successful warranty operations can become both a strategic advantage and a referral source!

How?  An article by Aditya Baliga in Industry Week, suggests a key element is to develop a holistic and streamlined warranty process.  Some key elements:

1. Warranty Analytics -- Do you know your Top 10 issues? How about their reasons?
2. Claims Processing -- Have you done everything to improve the process and minimize costs?
3. Automation -- Go Mobile! and let your homeowners submit requests directly, as an example.

CPS has been helping home builders improve their customer relationships for -- over 30 years.  WarrantyWatcher can provide the analytics you need as well as expedite both claims processing and vendor notification using automation.  Give us a shout out!

New Home Construction: Velocity and Profitability

Are you on the construction side of the new homes industry? Great recent Builderonline article by Mary Salmonsen; you can read it here.

Shifting focus to velocity can enhance profitability

Salmonsen highlights one of SAI Consulting Fletcher L. Groves' concerns: the under-consideration of project velocity in builders' business processes.

Or, to paraphrase a comment by John McManus mentioned in a previous Solutions blog: builders need to work with greater velocity or... learn the pain.

In other words, rather than putting a laser focus on individual lot margins, apply some of that attention, data collection and reporting to the amount of time required to build that home. That's cycle time.

Of course, cycle time doesn't live in a vacuum -- and can't be measured in the abstract, either.  Do you have a published schedule -- and do you track progress against it? Does everyone look to a specific schedule or do you have multiples floating within the company?  If there's one, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors.  They're able to better plan and their planning helps them become more consistent, efficient and profitable. That's a win/win!

Are you able to report on which vendors show up on time, or have the highest level of rework, consistently have safety issues, always fail field inspections? That information helps shape a long range vision of your construction cycle and helps deliver consistently better results.  And, it should be available relatively easily and consistently to be effective.

We'd like to suggest CPS'  FieldCollaborate as a software tool to help you develop consistent schedules and measurement tools.  You're able to quantify and measure quality items, delivery times, subcontractor consistency, safety assessments and punch items.  It all helps highlight factors impacting your construction cycle and allows you to be proactive about the next lot, phase and community -- and design for long-term profitability.

New Home Construction Data: Helping You Design For Long-Term Profitability

Did you have a chance to check out Pain Points: Win or Learn by John McManus?  He focused on 3 things that matter most for builders -- today!

And, those 3 things are within every builder's control (vs. those you can't control such as weather, the economy, etc). Not just large builders, or public builders, or small mom-and-pop builders. All builders.

FieldCollaborate: Moving Beyond Scheduling to Meaningful Data!

The first was sales.  The second is taking those sales to completions

That is, the construction cycle. You are able to evaluate how your construction process is delivering by reviewing specific information: cycle time and, in turn, profitability.  

McManus suggests: work with greater velocity or... learn the pain.

Greater velocity can't be measured in the abstract, however.  Other factors -- and they're measurable, too -- have to come into the equation or profitability is a one-time gain with a short life.

What are you doing to understand those other variables?

Do you know which vendors show up on time, or have the highest level of rework, consistently have safety issues, always fail field inspections? That information helps shape a long range vision of your construction cycle and helps deliver consistently better results.

We suggest FieldCollaborate -- including the available web Portal for vendors and home buyers -- will help.  It's not just about scheduling, any longer.  You have to consider reporting on quality items, delivery times, subcontractor consistency, safety assessments and punch items.  It all helps highlight factors impacting your construction cycle and allows you to be proactive about the next lot, phase and community -- and design for long-term profitability.

New Home Construction Web Portals: 24/7 Access for Vendors & Buyers

Are you familiar with the concept of a web portal, sometimes referred to as a neutral platform in the cloud?  Portals provide users the ability to view — and sometimes update — information developed by one or more systems from a single web-based location.

Give Your Vendors 24/7 Access to Schedules & Punch

What would a construction portal do for your construction process — inside and outside the company, including vendors and home buyers?  Effective portals improve communication and collaboration by providing real-time data access to enterprise information.

Let's take a look at a real-world example: CPS' FieldCollaborate Portal allows a builder's vendors to log-in — any time, 24/7 — and view their construction schedules, punch items and safety assessments.  And, they're able to pull up builder documents and drawings, too.

Home buyers, on the other hand, login to the FieldCollaborate Portal to view their home's schedule and stage-of-construction photos.  The Portal keeps home buyers actively engaged throughout the home buying/construction cycle, which in many areas can take nine months from the time of contract acceptance to closing. Great for out-of-town buyers!

Home builders use the Portal, as well, to share information within their enterprise. When we consider the entire set of participants — the builder, vendors and homebuyers. 

Think about the number of phone calls, faxes, emails and misunderstandings that can be eliminated!

What's more disruptive than having multiple sources of information?  Your portal provides the same information to everyone (governed by access credentials, of course) — and it's all available 24/7, in real-time, via the cloud!

Portals improve communication and that makes the builder's entire enterprise more efficient and productive — resulting in more profit for both the builder and their vendors. Ask us how FieldCollaborate and Portals can improve your scheduling, communication and efficiency!

Construction Data Portals: Immediate Collaboration

Are you familiar with the concept of a Portal -- sometimes referred to as a neutral platform in the cloud?

Portals provide users with the ability to view -- and sometimes update -- information developed by a variety of systems and managed by different organizations in a single location. Typically, they're accessible via the Internet.

What could a construction Portal do for you, your organization, vendors and/or buyers? An effective Portal provides data access, governed by credentials, to all appropriate stakeholders.

Construction Portals facilitate Collaboration

Let's take a look at a real-world example. Vendors can log into CPS' Field Collaborate Portal and view or print their construction schedules, punch items, and safety assessments.  In addition, they are able to view builder documents and drawings.

Home buyers, on the other hand, log into the Field Collaborate Portal and find their home's schedule as well as stage-of-construction photos.

If we considered just this set of participants, can you think of the reduced number of phone calls, faxes, emails and misunderstandings? Portals make the entire enterprise more productive!

Home builders use Portals to share information internally, as well.  What's more disruptive than having multiple sources for information?  A well-managed Portal provides the same information to everyone (governed by access credentials, of course) -- and it's all available anywhere, anytime via the cloud!

Mobility: What Benefits Are Available for Construction Operations

Did you see last week's blog highlighting the value of mobility tools to the construction industry?

Nile Lars suggested, in an Insights.Wired article, that mobility solutions add real value to the construction process.  Generally, construction-related businesses are managing multiple projects, in a variety of locations, with most staff working remote -- and all participants have a need to communicate status, results and financials.  Depending on the project, you might also want to add in vendors to the mix, as well.

FieldCollaborate Mobile:  Anywhere/anytime schedule access

Lars suggests several key benefits available throughout the entire construction life cycle:

-- Improved communications as mobility keeps the field and corporate office connected.  Easy sharing of data and images as everyone has anywhere/anytime access.

-- Better workflow processes as a result of real time data.  Field managers, for example, can indicate a task has been completed and approved for payment and, using mobile devices and an integrated system, accounting can issue payment.

-- Increased productivity.  Think improved efficiency, no more double data entry, missed phone calls, lost faxes and the like!

-- Ability to integrate systems and outside staff. Now that field managers and corporate staff have anywhere/anytime access to data, why not offer access to your vendors?

And, mobile tablets and smart phones offer the ability to go beyond data: field managers, for example, can capture onsite images, videos and audios to back-up activities onsite as well as distribute to corporate staff.  Document sharing is becoming more and more popular, as well.

Mobility enables  field staff  and vendors to be active participants throughout the enterprise -- saving time, enhancing communications and strengthening workflow processes.