Supplier Recovery

With supplier recovery, the percentage of a company’s total claimed charges is meant, that is in fact liable to suppliers of that company. It is often forgotten or neglected, but as any normal customer, companies are also entitled to warranty from their suppliers. In practice this means, that if you can show to your supplier that a claim on your product was in fact caused by a failure in the suppliers’ part/product, you can claim this damage at your supplier. The reason that this is often not very high on the management agenda is that this seems to be small money and a lot of effort to get it. This is in fact a big misunderstanding, as many companies purchase finished goods or highly complex parts which they only assemble. In these cases Supplier Recovery of up to 85% is feasible! Of course one needs solid information to base these claims on, which can be provided easily with a proper Claim Handling solution. In some cases it is beneficial for both parties to just buy-off the warranty, e.g. by means of a discount on the purchase price, typically for low value parts of products. The data provided by the claim handling system will allow for making and evaluating these types of decisions.