News Blog
Barbara Hinderer | May 1, 2023

Reducing Warranty Costs with Visual Components Detector

A man working on a mercedes glc in a factory.

Who doesn’t know it? The wrong component was ordered, and a warranty claim is inevitable. But what can be done to reduce the warranty rate while improving costs and sustainability?

The numbers are alarming: In the German retail sector, including online retail, approximately 250 million return packages are processed annually. This accounts for 28.6% of the total package volume. But what does that mean for our environment?

Complaints - The underestimated problem after the sale

Every return on average causes a CO2 emission of 500g, resulting in an annual emission of 143,000 tons of CO2. This has a negative impact on sustainability and our climate.

It is therefore urgent that we all become more aware of our consumption habits and avoid unnecessary returns. One way to achieve this is to define exactly which products we actually need and gather sufficient information about their features and sizes.

Retailers and online shops can also contribute by improving product information and providing size charts or other useful details. Additionally, they can create incentives to enable customers to make more conscious purchasing decisions and reduce returns.

The numbers speak for themselves: In B2B/B2C trade in Germany, returns incur annual costs of approximately 5.3 billion euros, and complaint processing costs around 6.7 billion euros. Together, they result in a total cost burden of approximately 12 billion euros, which corresponds to about 2.5% of the revenue.

The environmental impact of returns should also not be underestimated. In B2B/B2C trade, returns cause approximately 175,000 tons of CO2 emissions annually.

It is therefore crucial for companies to take measures to reduce the number of returns and complaints. This can include targeted training of employees to minimize errors in order processing, improving product details and size charts to avoid incorrect purchases, or leveraging innovative technologies such as virtual fitting or 3D scanning.

Reduce complaint numbers systematically with the Visual Components Detector (VCD).

We presented the solution at the Hannover Messe #hm23. By ordering the correct component from the start, the customer can save a significant amount of time and money. And it’s even done in a charming way! The VCD initiates the efficient procurement process where the greatest potential lies. at the user

With our app, not only is the component identified, but the entire purchase-to-pay process is automated. Upon request, the ordering process is initiated directly, simplifying the purchasing process.

Here is an overview of your benefits:

  • Minimize search time for spare parts
  • Avoid incorrect orders
  • Reduce downtime for re-commissioning
  • Save (travel) costs
  • Increase revenue through satisfied users

Join our webinar with a live demo to learn how our app can help you reduce your complaint rate while working more sustainably and efficiently.

Book a webinar:  Termin Mittwoch 3.5. 9:30

Watch the video to see how the app works!