Case Study: A Strategic Approach to Reducing Warranty Costs for a Healthcare Company

by | Dec 13, 2019 | Case Study | 0 comments

Objective

Reduce warranty costs and spending inefficiencies with wireless devices, and free up time for overworked IT employees.

Company Size

30,000 employees and 10,000 wireless lines currently in use.

Trinitas was recently approached by a large healthcare company to help the organization review and then reduce spending and warranty costs with wireless devices. This would not only potentially save the company hundreds of thousands of dollars; it would also reduce the workload of an overworked IT department.

Solution

Trinitas conducted a consultative deep dive into the company’s wireless program, uncovering opportunities for spend reduction that had previously been overlooked.

The company had 10,000 wireless devices and was covering each one with a name brand warranty care product that cost $124 per device. This resulted in an annual cost of $1,240,000.

Trinitas discovered that only 20% of those 10,000 devices actually used the warranty care product resulting in a massive over expenditure. Trinitas analysts found that 80% of that money was being wasted on those devices. Instead of providing warranty programs for each individual device, Trinitas implemented our signature Device Repair Program, only to be used on an as-needed basis, meaning the company will only pay fees when a device is actually in need of a repair. The average cost to repair a device is $124, or $248,000 for the entire fleet of devices.

Result

Cost savings of $992,000 annually. The company used this cost savings to implement a more successful tablet program. Additionally, their employees are no longer responsible for managing the warranty program and all of the inherent headaches associated with it. They also added new employees to the IT team to help accomplish the company’s new information and technology goals.

Client Satisfaction

“[Trinitas] went above and beyond! We appreciate your service and support for our company — you always go the extra mile to service your customers. We look forward to working with you this year and beyond!”

 Bart
Sr. Telecommunications Engineer
Worldwide Apparel and Footwear Company

“We so appreciate your team’s willingness to accept the Coupa challenge and your work with our team to get the catalog updated and running. Katie has been outstanding to work with on the accounting side of things.

I give Trinitas an “A” for outstanding support throughout this transition! Our immediate goals with Trinitas will be to maintain our current partnership and the excellent level of customer service and support we feel you are providing. Thank you for all you do!”

 Nicole
Procurement Coordinator Indirect Procurement – Telecom
Worldwide Apparel and Footwear Company

“Since our work with Trinitas began, I am not being asked to follow-up on orders or request adjustments for items received that were incorrect or did not meet the needs of the users. Trinitas has stepped in and worked directly with our company on these issues. David is easy to work with, with excellent follow-through. I look forward to a lengthy professional relationship with Trinitas.”

 Carolyn
Sr. Coordinator, IT Controlling
Luxury Vehicle Manufacturer

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