Case background and issued faced by client
A Global OEM was experiencing higher levels of damage in a particular global region which was affecting their target levels.
They asked UCM Global to propose a solution to monitor their top 10 worse performing LSPs and create actions to reduce their damage levels to the global target.
Our approach, actions and experience
UCM Global created a monthly report template for each of the LSPs, based on the data collected in our Claims Management Platform, with two key areas of focus:
- A rolling three-month total damages graph, a breakdown by model, damage location and damage type, and a summary of claiming dealers.
- A summary of claims agreed and not paid, and claims not yet agreed.
The second area of focus was included because, an analysis of the LSPs showed that poor damage levels were typically accompanied by slow recovery rates and disputes.
The monthly meetings included UCM Global, the OEM quality and purchasing teams, and the LSP.
- The LSP was sent the report a week or more before and asked to review and prepare explanation as well as an action plan to the meeting.
- UCM Global’s role was to lead the meeting and bring experience of locations and on-the-ground operations to understanding possible root causes of the damages. Additionally, to push the LSP on action required.
- The OEM quality and purchasing teams’ role was to provide urgency and the possibility of loss of contract if actions were not taken or damage levels continued at unacceptable levels.
Results and benefits
- The combination of damage and recovery reporting has worked well in getting outstanding disputes resolved and recoveries paid faster.
- Almost invariably the action plans have been effective in driving down damage levels across all model variants
- This project has also created an improved focus on damages as an unacceptable consequence of vehicle movements.
The success of this project has led to a request to use this as the template for damage reduction work in other regions or where particular LSPs results are not acceptable.
It has also been accepted as the template for a similar project with another European-based OEM.
