Optimize claims & reduce spend through warranty analytics

Industry Sector: Transportation

Business Function: Operations

A major railroad struggled to recoup costs for parts failing under warranty due to the complex web of parts, claims, and contractual coverage.

Using Palantir Foundry, the procurement team has a complete virtual view of each locomotive part, can identify all parts that failed while covered by a warranty, and runs the claim management process at scale and efficiently.

Challenge

A major railroad was replacing over 5,000 locomotive parts per week, representing a significant portion of its annual maintenance budget. The scale of the operations and the uniqueness of warranty coverages for each part category and each supplier made it difficult for the procurement team to get compensated for all parts that failed while under warranty.

Solution

• Parts 360 -- Foundry generates an integrated picture from financial and operational systems to provide a unified view of each part throughout its lifecycle: Purchasing → storage → installation → failure(s) → removal.
• Rules Workflow -- Foundry's Alerting Framework automatically analyzes parts against all applicable warranty terms to identify warranty opportunities. A rules management application enables business users to actively manage complex business logic in Foundry through a point and click interface.
• Warranty Claims Management -- Analysts efficiently run the warranty claims process -- from opportunities identified to money recovered -- by connecting to the rules workflow and the Parts 360 views.
• Native ERP Connector -- The organization achieved rapid time to value via Foundry’s ERP Connector, which automatically models disparate data and provides seamless read and write to underlying ERP systems out of the box.

Users and stakeholders

• Claims analysts
• Data Scientists (to develop rules for alerting)

Impact

• $20M+ recovered per year through new warranty claims.
• 3x increase in warranty opportunity (finding a part that failed while under warranty) identified.
• 13% reduction in locomotive material spend annually.

Implement a similar use case

This use case implements the following Pattern. Follow the link below to read more about a particular Pattern and learn how it is implemented within Foundry.

• Alerting workflow (used for 7 other use cases)

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