Upgrade Your Warranty System and Improve Your Customers' Buying Experience

Episode 358: In this episode of The Heavy Duty Parts Report, Jamie Irvine speaks with Bryan Thueson of OptiCat and Moritz Mahler of TecAlliance about the long‑standing challenges in warranty processing across the heavy‑duty parts industry. They explain how manual, inconsistent, and inefficient warranty workflows create high process costs, poor transparency, customer frustration, and inaccurate quality tracking for both distributors and suppliers. 

Moritz describes how TecCom’s standardized digital warranty platform—already widely adopted in Europe—streamlines claim creation, centralizes communication, integrates with ERPs and e‑commerce systems, and reduces claim processing time to under 90 seconds. Bryan highlights the improved customer experience, reduced costs, and better data accuracy that come from adopting a unified system rather than each supplier building their own. 

Links

·         https://www.jnpopticat.com/

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Transcript

Jamie Irvine

Welcome to The Heavy Duty Parts Report. My name is Jamie Irvine, and in this episode, we're going to talk about warranty and warranty process. Now, I know that might not be the most exciting subject, but when you think about it, if you're responsible for selling heavy-duty parts, you go to all this effort to get your customers to come to your store. You then take care of them. You sell them the parts that they need. And then, uh-oh, something goes wrong. So when this happens, whether you're a supplier or a distributor, you need a strong warranty process to take care of your customers because it's not if it's going to happen, it's just when it's going to happen. And to help me with this discussion, I'm excited to have two guests today. First, I'd like to introduce Bryan Thueson, COO of OptiCat. Bryan, welcome to The Heavy Duty Parts Report.

Bryan Thueson

Thank you, Jamie. Happy to be here. It's great.

Jamie Irvine

And then we have your counterpart, Moritz Mahler, who is responsible for business development. Moritz, welcome to the podcast.

Moritz Mahler

Thank you. Pleasure to be here.

Jamie Irvine

So gentlemen, let's get into the conversation. Bryan, historically, how have warranties been managed by suppliers in the past?

Bryan Thueson

Well, from my experience, what I'm seeing, Jamie, is a lot of it's just done manually from a garage standpoint or shop standpoint, it's manual. And each supplier has a different way that it needs to be done because their system requires something different. So, I would say that's probably the biggest thing, that challenge that we run into though, I think is that the manufacturers get big crates of returns, right? There's not one return, it is big crates of returns. And so that's challenging for them because how do we deal with all these all these returns and by the time they get them, they don't really know who created that return. And they don't know what's in the return, right? They don't know if that's the part they sold or a part someone else sold to them, or if it's a brick in that box. They really don't know what's in it. So those are some of the big challenges that they see. And I heard a little bit about that just this past weekend at the CVSN meetings that I was at. So it's a challenge.

Jamie Irvine

It's so funny because as you say that you're bringing me back to the days when I started my career in manufacturing and I actually was in charge of warranties at one point. And that is exactly what would happen. You'd have one of your distributors and they'd send you a crate and then you got to sort through it and figure it out. Absolutely. So, from a systems perspective and from the supplier's perspective, Moritz, what would you say are the limitations of processing warranties, kind of in that more manual method where perhaps we are running spreadsheets, we are doing things off of maybe a pen and paper checklist. You know, that is the way warranties were handled, both at the distributor level and at the supplier level for years. So, what's the limitations to that? What kind of does that create?

Moritz Mahler

So it's mainly, from my standpoint, point of view, it creates a lot of process costs. So you have to handle everything manually. You have to handle this parts. When you receive it, you have to sort it out. So even the brick stone needs somehow to be classified as a brick stone. And you also have no transparency internally. So there's a lot of communication needed. A customer called me, can you please tell me the status of this warranty case? When do I get my money? And so on. And also, if you need to somehow track this, you need to create it somehow or somewhere in any system. Either it's an Excel file or it's an own system, what you created, and so on. So somewhere you need to keep track on this. The next part is you don't give a good customer service to your customers because if they want to know the status of the claim, when do I get my money? What is the status of this? What should I tell my customer? You, again, need to call around and ask, and you can't give them this. And one of the biggest points, what I see for the whole market is one of the reasons why we developed our product is every supplier, even if they think they can now change this process cost part, they develop their own system. And with this system, which is great, so they make for their customer a perfect solution to have it fast, easy, handleable, with status checks and whatever. But if every supplier does the same, if you look at it from the distributor perspective, then you have 200, 300 perfect systems, what do you have to handle with? So you still have the thing, even if you don't have to write it by hand anymore, but you need to remember all the passwords, all the logins, all the process steps. What do I have to do on this portal now? So a supplier is like, I'm done with this. I made a perfect solution and now you have to use it. But as a distributor, I worked for 15 years for distribution company. It's a pain. It's a big, big, big, big pain.

Jamie Irvine

Moritz, as you were describing your experience as a distributor, it made me think of my time as a distributor. And one of the things I know, especially when I was both on operation side and in sales, is a lot of times customers would phone me and they would say, hey, what's going on with that warranty that I submitted six weeks ago? And of course, you know, you have so much going on, you don't remember. So you say, let me get back to you. So that you start phoning around. And Bryan, I wanted to ask you, overall, what's your impression on the impact this method we've used for decades has had on that end user's customer experience?

Bryan Thueson

Ultimately, it's going to increase the cost of parts, right? Because if we, it's just a headache. I mean, I remember back in the days we were building distributor systems, and I went out to so many places, and they would take me out to the warehouse and they would show me these bin locations where all the returns go. And you're going to see hundreds, if not more, of these returns. And then you have someone that comes into that distributor location or that warehouse, and they have to go through all of these returns. And so what I think is what's happened is there's discounting. Just look, I'm not going to deal with returns. I'm just going to give you kind of a fresh discount your returns have been X. I'm gonna give you a discount of Y and that leads to other problems and challenges and just ultimately increases the cost of everything so I think because we can't be we're not really efficient at it here, we just throw money at it to try to solve the problem We don't really know why the part went bad when we do it this way we don't know if the part was really bad or if they you know, like I said earlier you just throwing stuff in the box to send it back to get credit.

Jamie Irvine

Yeah, and that's exactly what I saw happen when I was working at the distribution level. So, a lot of times we would just write a policy, and this is how it would go, right? The customer would buy the product, they'd have it installed, it would fail, they'd bring it back for warranty. We would invoice them for a replacement and say, hey, we're going to process this warranty for you. So we would go and try to figure out what form we had to fill out for the supplier. And as you mentioned earlier, it was all different. And then we would send it back. And then it was just out of sight, out of mind, and it was forgotten about. Customer calls six weeks later, hey, what's going on with my warranty? And the salesperson's like, oh yeah, let me find out. So they'll call around, find out. that maybe it's still sitting there and hasn't been processed at the supplier or the manufacturer yet. So the distributor would, you know, call back and talk to the customer and the customer is now understandably frustrated. And so, then a lot of times the distributor would just policy it, give them the credit, and then try to figure it out on the back end with the supplier. But that's a real disservice to the end user for two reasons. One, if there is a problem with that part, they deserve to know that it wasn't something that their mechanic did wrong. Or two, if there is nothing wrong with that part and we've just policied it, they think that part was defective and really there's an upstream issue causing the failure that hasn't been addressed. So that's just bad for the end user, but it's also bad for the supplier because then they can't really track what's going on with the products they're manufacturing. And I've even seen occasions where people had this real bad taste in their mouth for a specific brand, and it had nothing to do with the product they manufactured. It was a systemic issue somewhere else in the system that was affecting a lot of customers. So, I'm sure as you were working at that level, you saw these themes on repeat across the country.

Bryan Thueson

Yeah, I remember one guy saying, dude, I hire warehouse people. I don't hire private investigators to figure out what's going on with my return right? Because there's so much documentation, like you said, different kinds of documentation. And so what caused the problem? And by law, some of the manufacturers by law need to be able to prove what, you know, what happened if that part was defective, right? There's just so many headaches with it, unless we can track it. Now, some of the, you know, I was talking about the big bins where all the stuff comes back and it's just like, let's just handle it in a bulk way because it's cheaper. It is when we don't do it properly. If we can share the burden of recording the return accurately and assigned to the right manufacturer, then it makes the supplier's job much easier. But if you take this whole chunk of crates and throw it at the supplier, says, here, you deal with it, I would do credits too. But if we can have everybody just take a couple minutes and log that return, I think we get some efficiencies we don't see today.

Jamie Irvine

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We're back from our break. Make sure you go and check out the links in our show notes to all of our sponsors. OK, let's get back to this episode.

Before the break, I think, gentlemen, we did a good job of laying out the challenges associated with processing warranties, both for the supplier as well as the distributor and the impact it has on the end user customer. So Moritz, can you explain to me why your group of companies is really well positioned to develop a solution for the warranty problem?

Moritz Mahler

I think we are good positioned because TecCom is founded by our shareholders exactly to solve this issue. I'm in business development for TecCom, so we bring TecCom to the United States or to the Americas in a moment. And it's quite good, established in Europe for the case of standardizing. So we see us as a standardizer of the market. We did this with orders already. And now we do it with returns and warranties. And the thing is, we do it because so everyone doesn't need to develop the system on their own again. So let's just imagine you are a supplier, you develop a perfect solution for yourself and bring it to your customers. This will cost you at least 500,000 up to 5 million. So multiply it over the market. How much money do we burn in the automotive aftermarket to build these perfect solutions if we would just have one system where we can use all of this? We did this with order and it works and now warranties and returns is exactly the same way.

Jamie Irvine

Moritz, you mentioned the shareholders of your company. For those who don't know, can you explain how your company is structured? How was it founded? Who are those shareholders and why is that relevant to the people who would use the solution?

Moritz Mahler

Okay, to understand this, TecAlliance is our mother to say, and TecCom, so my part of the product line is one of the daughters, former company founded by our shareholders, and the shareholders are Bosch, CF, Hella, Mahle, Valeo, TMD, and so on and so on. BorgWarner, Drive, Finia. I missed definitely some, but you see it's big manufacturers and they said, we don't want to do the same thing again and again, which just costs money and causes problems.

Jamie Irvine

Okay, that makes sense. So Bryan, walk me through some of the key benefits of this solution that your company is bringing forward.

Bryan Thueson

Thanks, Jamie. I would say that it boils down to certain things always, and in business, we're always looking for these things. One is, what's my ROI? What does it cost me not to do this? So one would be, I think that it becomes, if you implement it, it's less expensive as Moritz was talking. Secondly is I think that we provide a better customer experience. So I think it's going to make it so the customer likes to do business with you. It's like you mentioned, sometimes I don't purchase product from a supplier, not because I thought the brand was no good but because of my experience. And we want to always make a great experience. And then the documentation process is chaos. otherwise, or it's non-existent. So when you take all of that stuff together, I think customer satisfaction, return on investment saves you more money. And I think it's going to be easier for your whole team. There's some efficiencies there that you wouldn't get otherwise.

Jamie Irvine

Thanks, Bryan, for giving me that high level description of the key benefits that this system really provides. But at this point, I still don't know exactly how it works. So Moritz, can you walk us through kind of from beginning to end, just how does the system improve the situation for suppliers and distributors? Walk me through exactly how this system operates.

Moritz Mahler

Okay so we built a system to provide you digital documents. So like the former manual process sheet, what you fill out by hand. And because of our capabilities of TecCom, so we know the customer, we know, so the buyer, we know the supplier, we know who the players are, and we know the parts because of either in TecDoc or OptiCAT data, we know the part numbers. So we try to speed up the process with all the combined tech alliance knowledge and experience what we have. So we integrated every different system into returns to make the process so fast that we need less than 90 seconds to create a claim. This is one. Then we said, okay, we can connect the system to everyone in the market. We have a lot of times problems with chicken and egg. So we need so and so many distributors to work with, or we need so and so many manufacturers to work with. Our solution is made to be to help you directly stand alone. So you need nobody working with the system, just yourself and you save yourself time. You give yourself transparency. So in case of customer contact, internal transparency, so the guy doesn't need to go to the warehouse anymore to find this other guy with a big folder and this big pile of parts. Everyone in the company can look after what is the status of a part. And we made the possibility to send out claims digitally by e-mail. And we are also able to send out links for claim creation to my workshops, for example. And so a distributor can use it standalone and the manufacturer can use it standalone. And the connection just gives me another 10% of performance because then I can exchange communication. I don't need to have e-mail traffic going on. And if I'm in holiday or ill, nobody knows what was talked about this claim. We have everything disintegrated. So we can supply the whole supply chain and every step can participate, but also work on their own and benefit on their own.

Jamie Irvine

Okay, so if I understand that correctly, I want you to imagine end user walks through the door at a distributor's retail location, puts a defective part on the counter. The person working at the distributor is able to just quickly open a link, fill out all the pertinent information, which then immediately puts that into the system, and now that is visible to both the distributor and the supplier. Is that correct?

Moritz Mahler

So in this moment, gets the distributor the claim, and he sends it directly then to, let's say, the headquarter. The headquarter forwards this claim like today, but the part is still on the desk. And in the moment, the headquarter of the distributor now sends this claim digitally, because he has pictures, he maybe has a video of the part inside of the claim, and now he forwards the claim, and forwarding takes only 10 seconds to the manufacturer, and the manufacturer receives it. In a perfect world, when everyone sits on his desk and does the same thing, the manufacturer can directly say, okay, this is a known part. I accept it directly, send back the review, the response. The headquarters sees directly, oh, I got a response so fast. This is so nice. I can directly respond. And the customer is still on the desk, and he could, for example, get directly an answer. But you can also see this independently like we do it today. And this is the big flexibility of returns too.

Jamie Irvine

Well, even if it happened within the same day. So the customer leaves and the parts guy says, hey, no problem. I'll call you as soon as I know. I should know in a couple hours, gets the notification to go ahead and authorize the credit. He can then immediately notify the customer that same day. That's a heck of a lot better than the situation I described, which happened all the time, where six weeks later, the customer's chasing the warranty and phoning me, and then I have to phone and find someone at the supplier and that whole thing. That gives me a real great visual of how the system works. I think our audience would appreciate that as well. So what about integration with existing technology stacks Moritz? It's like the reality is these distributors are using ERPs. Manufacturers have their own systems and ERPs. There's e-commerce platforms out there now that just about everybody's using both B2B and B2C. There's a lot of technology in behind suppliers and distributors in 2025 going into 2026. How do you integrate with those existing technology stacks?

Moritz Mahler

So we come from the SAP area. So TecCom is founded as a SAP module. So therefore we have already SAP modules created which helps the supplier. For example, if they have SAP in place, we have a module which directly makes all the communication between returns and the supplier ERP system. But we have also integrated the possibility to integrate into any ERP system, especially for the financing part. And we create an API on the, let's say, downgoing side. For example, if a distributor, as you said, has an e-commerce platform or web shop, whatever, we have an API to connect into the e-commerce system, which helps then the customer to directly go from the journal, I bought this part and I want to return it, put it with a reason, like you know it from Amazon today, and you send it back. But in the background is already returns creates a claim for this. And so the end customer doesn't even see a difference, but you have everything in returns and you can handle everything in returns and do it there.

Jamie Irvine

Yeah. So that's such a powerful thing to be able to empower the end user customer to have more control over input and also being able to see the visibility. So I think that's fantastic. You know, when we look at these big complex problems, Bryan, a lot of times there's misconceptions or there's counterintuitive things going on. Could you maybe tell us about some of the misconceptions you've encountered that people have, or maybe something that's counterintuitive about this when they're implementing this solution that we really need to think about today.

Bryan Thueson

You know, I was at a conference not long ago, and I think that what I learned from that was that they didn't know this existed, right? So it is new. I mean, it's new to the US, but it's not new to TecAlliance or it's not new to the rest of the world, if you would say. So I think one of the misconceptions is that this, something like this doesn't even exist. Therefore, I either need to create my own or I need to create another way of doing it. So I think that's number one. And the other is that the distributor thinks that they need to build this ourselves because they think that, oh, I need to have it integrated into my system and I want it to work the way I need it to work. And I don't think there's anything out there that allow me to have the customization switches, if you will, to make it work the way I need it to. So those two things lead me to think that they think they gotta build it on their own because there's nothing out there that will really fit my processes and how I do things.

Jamie Irvine

Yeah, and you know, on the e-comm side, I see that as a growing trend. There's more and more distributors I'm coming across who have like, you know, they've tried once, they're abandoning the out-of-the-box solution they purchase, and then they're going and building it, and they're spending hundreds of thousands of dollars in development to do it. So that's a big heavy lift. You know, I always like to talk about a story where we can kind of see the solution in play and the impact it had. So Moritz, can you give me one of those great stories where you guys implemented this and like, what was the situation before, after implementation, what was the impact?

Moritz Mahler

So we had a customer in UK, a global customer, really, really, really big one, and they had in place allowances. So all their warranties went over allowances and why allowances? Because it's easier. So allowance helps the distributor. You said it before, allowance helps distributor because everyone just throws this thing in a big pile and in the end you get a percentage of your sales and just done. Problem with this is I think this is, I try to preach this a little bit because this is a big problem for our aftermarket because the manufacturers doesn't know what parts are failing, really failing. Because they just reimburse the money and they don't get back or they don't know which parts fail. For them in the first moment, it's fine. But the garage, maybe after he gives back this sensor the third time, the fourth time, he will not buy this brand anymore. Maybe he tries to buy a different brand, but then he will buy OE. And then we all have a problem because when they lose the trust in the quality of automotive aftermarket products, we have a problem. And the biggest reason, stepping back, why did they invent the allowances? The allowances came up because of high process costs. Because you have to handle it, you have to store it, you have to look at it, you have to work on these things, to send it around. And this customer, what I'm talking about, they now switch off the allowance because they reduced their process costs so low that they now can ask at any point which of these parts are failing and they can ask exactly the parts back what they need to investigate. They can improve their quality that these things are not happening.

Jamie Irvine

That's a fantastic example of exactly the problems that I see. For people who maybe don't understand. So if you're a supplier, there is a percentage, and that's the key performance indicator that the warranty department often operates by. Can we keep our warranty, which is true manufacturing defects that we have to warranty, can we keep that percentage at a certain level? Maybe it's a couple percent of sales. And then we have this thing, you called it allowance, I would call it policy. And policy is just the make the customer happy and don't worry about it. And so oftentimes companies, they try to keep their warranty and their policy about the same. And then the total, when you put it, when you add it all up, keep that under a certain percentage of sales. And that is exactly how most suppliers do it. So pretty interesting that they were able to basically eliminate the policies or the allowances, which would have a big impact on the bottom line, 'cause that's money that just is being directly put to the bottom line. So fantastic.

Moritz Mahler

But point, even if the company doesn't want to give up the policy or allowance, at least with returns, they can keep track on the quality. Because if they say, okay, you get the money, if you track or keep track on the parts, we know exactly which parts are failing. Because today it's just a big box where they dump it in to save time. And then we would have at least the number of parts which comes up, which they could get back if they would need it.

Jamie Irvine

And you know, it's not even just about identifying the things as the supplier that we are making mistakes on and there's a quality defect. It might also be better understanding why these failures are happening and what upstream or downstream issues contributed to that failure and then bringing education to your customers. So this then strengthens your position and has the opposite effect instead of people losing confidence in you. They grow in confidence because you're this thought leader that's bringing forward this information and helping the end user make money with their commercial vehicles, which is what the whole thing is all about. Okay, Bryan, so we're going to leave our audience with this one last question. And the full responsibility is on your shoulders to do a great job with this last question. If there's one thing you want people to remember from this conversation and only the one thing, what is that?

Bryan Thueson

I would say that the most important thing we want to know is we're here to support the industry. And overall, from the experience that we've had, this solution is a low-cost digital solution. And ultimately, we're moving into a globalization of companies. We know that a lot of companies are globalized. And so by creating a solution that works globally and also individually, I think that's the key is that there is something out there and it might be worth it just to check it out and see if it works. See if it's as streamlined as what Moritz is saying, see if there's value in it for you and for your customers. Ultimately, we do so much to make sure our customers are happy, is there something that we can do here to make sure that our customers are happy. And it's not always about the money. And the other, and the only thing I want to make mention here, because it came up in this discussion last week, is we've been talking about returns and warranty returns. In 2026, we are focused on core returns, which brings up a whole new story, right? And you know well what I'm talking about, so stay tuned for cores.

Jamie Irvine

All right, well, you gentlemen will have to come back and we'll do a whole episode on cores. You've been listening to The Heavy Duty Parts Report. I'm your host, Jamie Irvine, and we've been speaking with Bryan Thueson, COO of OptiCat, as well as Moritz Mahler, who is in charge of business development. He works with this group. If you'd like to learn more about this solution, head over to jnpopticat.com. Don't worry if you don't know how to spell that, the links are in the show notes. just one click and you'll be there. Brian, thank you so much for being on The Heavy Duty Parts Report.

Bryan Thueson

Thank you.

Jamie Irvine

Moritz, so glad to have you here and looking forward to talking to you about the new products that are coming soon.

Moritz Mahler

Thank you, Jamie. It was a pleasure.

Jamie Irvine

So that brings our episode to a conclusion. I want to thank you very much for listening right to the end. I think the ongoing effort at The Heavy Duty Parts Report to bring you information about innovative solutions is going to continue on into 2026. So if you haven't already, make sure you subscribe to the show. We are on YouTube. We are on the podcast player of your choice. And you can always just head over to heavydutypartsreport.com so you never miss out on any episodes. Thank you again for listening. And as always, I want to encourage you to be heavy duty.