"Following
the inevitable initial teething problems, Interchange
has provided a first class, customer-focused service
solution"
Samsung
Electronics UK is part of Samsung Corporation
of Korea, the world's third largest electronics
company and the 13th largest corporation - ahead of
Coca-Cola, Hewlett-Packard, BMW and American Express.
With a group turnover last year of $92 billion and more
than 260,000 employees worldwide, the group is
a multi-national conglomerate operating across
the four major markets of electronics, engineering,
chemicals and financial services. Samsung Electronics
UK is the country market leader in a wide range of products,
including computer monitors, fax machines and home entertainment
systems. Other product areas in which Samsung occupies
a dominant position include printers, video recorders,
televisions, microwave ovens, washing machines and industrial
air conditioning units.
Originally specialising in CRT products, Samsung Electronics
has moved progressively into TFT technologies,
selling under it own name and through distributor badging.
Based in Surbiton, the UK company has a service
and distribution centre in Telford, research centre
in Middlesex, a factory in Wynard and a European
quality assurance laboratory in Yately.
World's
third largest electronics company
Group
turnover last year of $92 million
Country
market leader in a wide range of products, including
computer monitors, fax machines and home
entertainment systems
Wide
range of products and a highly competitive marketplace
Maintenance,
technical support and warranty work has always
been crucial in maintaining customer satisfaction
and loyalty
With
such a wide range of products and in a highly competitive
marketplace, the issue of maintenance, technical support
and warranty work has always been crucial in maintaining
customer satisfaction and loyalty. The key elements
in these operations demand a dedicated approach.
In common with many other large manufacturing companies,
Samsung had chosen to outsource these business operations
to specialists - including warranty administration and
repair on display products.
Customers' warranty periods range from one to three
years. Service is provided at customer premises. Entitlement
is registered when a customer returns a completed warranty
card supplied with each product and these details must
be recorded for future verification. If service is needed,
the outsourced service provider attempts onsite repair,
with a loan unit being supplied if it becomes
necessary to complete the repair at the outsourcer's
own workshops. Samsung also demands provision of a customer
technical help line to ensure the very best customer
care.
In 1995, when the current outsource service provider
restructured and was unable to maintain the required
level of service, Samsung needed a rapid replacement
- planning to achieve faster equipment repair turnaround,
better warranty entitlement management and a higher
level of customer satisfaction in the process.
The
actual warranty/repair cycle is complex. The cycle runs
from warranty registration, acknowledgement and
technical support and advice, to on-site repair, modifications,
replacement and entitlement management. At each
stage, information is captured for analysis and reporting
to UK and Korean senior management. Covering such
topics as reasons for equipment failure, users, manufacturing
defects and noted trends, these reports represent
vital ammunition in the battle for improved customer relationship
management.
A high degree of flexibility was also required. For example,
Samsung sells monitors to both the business and home user
markets. Each has its own distinct and different needs
- requiring different support solutions.
Samsung
has benefited from cost-savings, improvement in
customer confidence and better response to warranty
service demand. There is also a demonstrable overall
improvement in product performance through higher quality
repair and maintenance - feeding back to subsequent
lower maintenance service need - and therefore lower overhead
per unit.
There has also been a significant improvement in
database management and exploitation. For example, including
full details on all customers who had bought Samsung products
as distributor badged purchases meant that for the
very first time, Samsung actually knew who all their
customers were. Interchange generates a complete monthly
listing of every user - own name or badged product
- registering for warranty, offering vital information
for Samsung's marketing and customer relationship management
planning.
A variety of other hidden benefits have been achieved
through the generally tighter control of the warranty
service functions - for example, more comprehensive
data capture for on-going product improvements.
The
solution was provided by Interchange which was
selected - after keen evaluation of eight
prospective suppliers - as one of two outsource
service providers.
"We see our job as providing assurance and
peace of mind," said Interchange Account
Manager Bob Tunmore. "We created a bespoke
process encompassing all elements of warranty
management - beyond warranty period end - through
a range of additional services such as lifetime
support."
Interchange assumed responsibility for all aspects
of the process from warranty registration,
equipment replacement, technical queries and modifications
through to performance statistics for head office.
Interchange's monitor warranty centre is based
at Newport Pagnall where the service was
immediately tailored to meet Samsung's individual
requirements. Every product in the Samsung range
was covered by staff with the knowledge and ability
to effect any repair - with front line support
for minor, easy-to-handle queries and specialist
engineers for more complicated queries.
Incoming warranty queries were handled from the
first day of the contract. Logistics support was
provided by Interchange's Flitwick support centre,
which was geared up to handle the 100 plus calls
a day typically received.
"What makes our approach so effective is
the integration of process, professional service
and technical expertise," said Tunmore. "We
support this with our own methodologies
and software which allows us to handle, literally,
hundreds of thousands of users. We are also able
to effectively address key relationship management
issues as maintenance of the user database,
change of ownership management, upgrade and replacement
management, and precise reporting on failure type
and resolution."
"We
created a bespoke process encompassing
all elements of warranty management
- beyond warranty period end - through
a range of additional services such
as lifetime support."
Closely
engaged in all stages of Interchange's solution
development and implementation, Samsung's
collaboration involved senior management visits
to the Interchange operational sites at
all stages to witness at first hand how the warranty
management procedures were being put in place
and operated. "Following the inevitable initial
teething problems, Interchange has provided a
first class, customer-focused service solution,"
said Samsung Electronic UK National Service
Manager
Peter Downes. The original contract - for
three years - was renewed in 1998 when Interchange
took over sole responsibility for warranty support
on display products. This continues today. "Essentially,
we provide peace of mind," said Tunmore.
"This peace of mind evolves from our company
ethos of superior customer service, systems, software,
knowledge and calibre of people - in close partnership
with Samsung - to provide clearly identified gains
in business operations and customer relationships."
"Our solution for Samsung is world
class, durable, resilient and flexible. It thrives
on change and the challenges that constant change
presents," he added.
Our
solution for Samsung is world class, durable, resilient
and flexible. It thrives on change and the challenges
that constant change presents."
Copyright
2001 - 2008 Interchange Group Limited - All Rights Reserved
Copyright
2001 - 2008 Interchange Group Limited - All Rights Reserved
