Capital Goods OEM Warranty Costs Have Fallen By 20% Over The Last 8 Years

Sep 11
2012
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Capital Goods OEM Warranty Costs Have Fallen By 20% Over The Last 8 Years

 

Overall annual warranty costs, as a % of sales revenue has been steadily declining. In 2003 warranty costs comprised about 1.8% of revenues for OEMs and last year it dropped to 1.4% or a 20% decline. This trend is positively impacting the end-users Total Ownership Cost [TOC] as products become more reliable and require less failure-driven maintenance.

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Written by Ron in: capital goods, defense contractors, Hypatia, management consulting, OEM, Outcome-Based Product Support, Performance Based Logistics, Product Support, product support enterprise, product support lifecycle management, strategic thinking, Total Ownership Cost | Tags: , , , , ,

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