The art of digital claim management: more clarity, more profit

In the automotive supply industry, a professional, consistent and goal-oriented process determines the success or failure of claim management. From the automated identification of claims to a structured process and consistent follow-up: Only companies that rely on clear processes can secure their margins.

The most important type of claim? Volume claims. Volume discrepancies have been one of the biggest challenges in the industry for years. Causes such as the effects of coronavirus, the semiconductor crisis and the unclear development of demand for electromobility make it essential to manage claims systematically. Companies that manage this process efficiently not only have a better chance of success, but also a significant competitive advantage.

In this blog, you will learn how modern claim management works and how digital tools can help you maximize your margins.

1. Why claim management is essential in today's world

The challenges in the automotive industry have increased significantly in recent years.

- Quantity deviations: Customers purchase less than planned or suddenly increase their orders.

- Additional costs: Adjustments in the supply chain or in production increase your expenses.

- Contractual uncertainties: Unclear regulations regarding volume changes make negotiations more complicated.

Effective claim management ensures that these deviations do not lead to uncontrolled losses, but are followed up and successfully processed.

2 The most common challenges in claim management

Despite the importance of claims, many companies struggle to manage them effectively. The most common problems include

a) Unclear contractual basis

The request often dates back many years. The agreed quantities are not available at the touch of a button. There is no central documentation. Finding this is the first major hurdle for many automotive suppliers.

b) Lack of automation

Without automated systems, it is difficult to identify potential claims in good time. Many companies rely on manual processes, which are error-prone and extremely time-consuming.

c) Unstructured processes

A lack of clearly defined processes means that claims are made too late or not at all.

d) Lack of follow-up

Even if a claim has been submitted, there is often a lack of consistent follow-up. The result: untapped potential and lost revenue.

e) Lack of transparency

Without a central platform for managing claims, it is difficult to maintain an overview of ongoing processes. This makes internal coordination more difficult and weakens your negotiating position.

3. How an end-to-end process makes the difference

A professional and consistent claim management process is based on three key pillars: automated identification, structured processing and sustainable follow-up. Here is how these elements work together:

a) Automated detection of claims

Digital tools can automatically detect deviations - in production volumes, for example - and flag them as potential claims. This automation saves time and ensures that no important cases are overlooked.

b) Structured processes

A standardized workflow ensures that every claim is clearly documented, checked and processed. All steps - from creation to settlement - are defined, so no time is lost.

c) Sustainable tracking

An end-to-end process does not end with the submission of a claim. Digital solutions enable seamless tracking so that no claim is lost in "day-to-day business".

4 The advantages of digital claim management

Digitalization brings decisive advantages to every area of claim management. Here are the most important ones:

a) Real-time transparency

Digital dashboards give you an overview of all current and potential claims. Management has access to up-to-date data at all times and can make informed decisions.

b) Error reduction

Automated processes minimize the risk of human error and ensure that all relevant claims are taken into account.

c) Increased efficiency

The automation and standardization of processes significantly reduces the processing time of a claim. This not only saves time, but also costs.

d) Stronger negotiating position

A complete and well-documented database makes your claims more convincing and increases your chances of success in negotiations with customers.

e) Additional income

Efficient claim management not only secures existing margins, but also generates additional income from correctly submitted and enforced claims.

5. A practical example: Successful claim management through digitalization

A leading automotive supplier was struggling to manage the numerous volume claims that arose during the semiconductor crisis. Manual processes led to important claims being overlooked or submitted too late.

By implementing a digital claim management system, the company was able to

• Detect discrepancies automatically: Unit count changes were identified and reported in real time.

• Reduce processing times: The time to create and submit a claim was reduced by 50%.

• Track sustainably: No claim went unnoticed and the success rate in negotiations increased by 30%.

• Increase financial gains: Millions in additional revenue was generated.

6. How you can optimize your claim management

Getting started with professional and digital claim management requires clear steps:

a) Analyze your processes

Where do deviations occur? Which claims are currently not being processed or are being processed too late?

b) Implementation of digital tools

Rely on a platform that has been specially developed for claim management in the automotive supply industry.

c) Training your team

Make sure your team understands the new tools and can use them effectively.

d) Work actively with the tool

Monitor your processes regularly and adapt them to new challenges.

Conclusion: The future of claim management is digital

A professional and consistent process is the key to successful claim management. Digital solutions help you to manage volume claims and other contract deviations efficiently and transparently - and thus secure your margins and competitiveness. The leading solution for automotive suppliers is called Digital Automotive. Developed with the know-how from this industry, made for this industry,

Take this opportunity: Schedule a live demo with Digital Automotive and learn how digital claim management can maximize your profits.