Traveling with no road map is like holding your team to a process that isn’t written down and clearly documented — only this time, you’re not just getting lost, you’re losing lots of money. It only takes one employee not following the process to cost your dealership thousands of dollars. Thousands of dollars that could have been avoided. In order to steer clear of this, employees should know their role in the process and make sure they complete their responsibilities before moving the claim forward. Below are just a few examples of some of the key players touching a warranty claim: • Service advisors should make sure the VIN Inquiry is run and attached, prior approvals are handled, signatures are present and repeat repairs follow manufacturer guidelines. • Technicians are responsible for documenting the 3 Cs (Complaint, Cause, Correction) with diagnostic test results. Failure to include all and complete 3 Cs on any line may lead to a chargeback during the audit. They will ensure the Technical Service Bulletins are followed in their repair and noted in their story. They are responsible for their time punching and making sure all one-time-use parts are replaced and charged out on the repair order. • Managers need to make sure they are authorizing add-on repairs, multiple component replacements, straight time and more. These are just a few important examples of the hurdle’s dealers can run into during an audit. Another area where documentation must be researched thoroughly is customer eligibility for incentives. Client information and eligibility are being scrutinized at a new level. You always want to avoid giving the impression of misconduct or being tagged for fraudulent submission by the manufacturer. Fortify yourself and your team by communicating with them about the expectations of an audit so they can be prepared. A “no exceptions” policy pertaining to paperwork and warranty work should be understood by properly trained employees. Fraud should never be taken lightly. It is a serious issue that warrants serious action. Help your new hires understand committing warranty fraud or performing unnecessary work will result in termination without warning or second chances. Implementing self-audits is a great way to help your team stay compliant. Designate a Compliance Officer Routine self-audit reviews are one of the best ways to ensure your program is compliant when an actual audit happens. Designate an employee as a compliance officer and assign them to regularly spot-checking claims and pulling a few job cards to check for complete, accurate information. You can direct them to conduct these weekly or monthly, but make sure it is consistent. Along with this, there are some important criteria to keep in mind: This position should be assigned to someone other than the service manager or an employee who is incentivized by closed claims or collected dollars. This is to make sure there is transparency and integrity in the process. Extra compensation can be considered for this person since their workload will increase, but their incentive should be based on a clean audit. Make sure their focus is on keeping all the dollars the dealership deserves instead of just closed claims or paid receivables. Electronic Document Storage There’s no better time than now to invest in electronic document storage! Stuffed filing cabinets and overflowing document boxes can lead to disaster. A single missing document could result in a costly chargeback for your dealership. Using web-based software to scan and store documents electronically provides a simple solution with significant benefits. It can take your storage from looking like Grandma’s attic to an organizer’s dream. Even better, all documents become instantly available through a quick search, allowing you to compile required auditing materials in seconds instead of hours. Scanning may not be anyone’s favorite pastime, but it is essential. Scan all documents, including signed invoices, receipts, technician notes, diagnostic tests and warranty claim reimbursement forms. By using a document scanning provider, you can quickly locate all documentation associated with each VIN through web-based software, making the audit process 15 UTAH AUTO DEALER
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