Blockchain in the guarantee industry

People don't often think about the warranty on a microwave or refrigerator until the appliance fails. Then wein the confusion we begin to flip through the pages of the guarantee in search of a possible solution.

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Ideally, the warranty should clearly stateDoes it cover repair costs? But the supply chain in the guarantee industry has a number of problems and inefficient links that interfere with both companies and consumers.

One of the most common problems for companies isfalse claims, fakes and confusion in warranty cases. Difficulties fall on the shoulders of consumers, force them to engage in tedious litigation and leave an unpleasant impression of service.

But warranty companies mayUse a more efficient way to process applications. Blockchain can improve this industry by ensuring the security of supply chains and providing the ability to track products and control its origin under warranty.

Here's how to do it.

The industry is facing many challenges and challenges.

Most people find that companies handle them by the nose during claims processing.

They talk for hours on the phone, trying in vain to prove that their case falls under warranty. But warranty claims are much more complicated than they seem.

Warranty companies are located inconstant battle. They try to figure out unlawful claims and cases that are not covered by the warranty. Fakes fall into the supply chain, which further complicates their work.

Many problems arise from the lack of information exchange between manufacturers, distributors, guarantee companies, and consumers.

The reason for this is a lack of understanding.consumer. Most often, warranty cards are located somewhere at the end of a thick book with instructions and a description of the product, and in the event of a claim, the consumer must fill out a special form and send it to the manufacturer.

But most people do not, because of whatthere is a big lack of information. Manufacturers do not know for sure where their goods will be. They know only the distributors to whom they sell products.

The manufacturer cannot track its goods, and the companies that provide guarantees do not have a tool to make sure that the goods for which they issue a guarantee are genuine.

Blockchain allows you to track the chain of responsibility

Blockchain solves this problem by eliminating the lack of information.

Using serial number or reliablecryptographic seal, companies can track the path of products from producer to consumer. They can turn to evidence in an immutable blockchain to make sure that the product has passed to the wholesaler, retailer, and buyer.

For each product, the manufacturer creates an entry in the blockchain. As you move up the supply chain, records are checked and created at each point of interaction, until the consumer buys the product.

When a buyer submits a claim, the companyproviding a guarantee, can check the records and track the path of goods from the manufacturer to the buyer. In this way, companies receive evidence that the product covered by the warranty is genuine.

The lack of fakes in the supply chain benefits everyone

The absence of fakes protects the brand of the manufacturer and the reputation of distributors.

Therefore, the company providingWarranty protected against false claims with fakes. Retailers gain another advantage to increase sales, and buyers can be sure that they are not buying a fake.

Checking the guarantee on the blockchain is very simple

If the supply chain is protected and the identity of the goods is registered on the blockchain, warranty claims will be resolved in a matter of seconds.

Let's say I buy a refrigerator: I open a thick bag with instructions, fill out a warranty card and register a refrigerator. Registration can be done automatically at the point of sale. The refrigerator works well throughout the year. But suddenly he stops cooling. I call the guarantee company and file the claim. Thanks to the blockchain system, an employee of the company can instantly check whether my product has a guarantee using identification data. The employee simply uses the serial number of the product and checks the records of it and the availability of the guarantee.

If the company is not sure my casewarranty, she sends her employee to my home. As soon as the problem is diagnosed, the technician instantly contacts the blockchain system through the phone and checks if my case is a guarantee.

Of course, this is a simplified description of the whole process, but for companies providing guarantees, the blockchain does create the necessary transparency in the supply chain.

In addition, such a system fights against fakes and significantly saves time and costs for determining false claims.