Warranty Leakage: Why You Are Paying for Repairs That The OEM Should Cover

You buy a $10,000 industrial motor. It comes with a 1-year OEM warranty.

Six months later, the bearing seizes.

Your technician, focused on getting production back up, pulls the motor, tears it down, and replaces the bearing. The machine runs. Everyone is happy.

Everyone except the CFO.

Why? Because you just spent $500 on parts and $300 on labor to fix a motor that the manufacturer would have replaced for free.

Even worse, by opening the casing yourself, you likely voided the warranty for the remaining six months.

This is Warranty Leakage. It is the money flowing out of your maintenance budget that should be covered by your vendors. And in most factories, it is completely untracked.

Why We Miss Warranty Claims

Maintenance teams are not designed to be accountants. They are designed to be fixers.

When a machine breaks at 10:00 AM, the technician's first thought is "How do I fix this?" not "When did we buy this?"

The data required to make that decision (Purchase Date, Warranty Expiration Date) is usually buried in a filing cabinet in the procurement office, or hidden inside an ERP system that the technician cannot access.

The gap between Procurement Data and Maintenance Action is where the money leaks out.

The Financial Impact

For a plant with $10M in active assets, warranty recovery can represent significant savings.

• Scenario: You install 50 new pumps during a capital project.

• Failure Rate: 5% fail due to "Infant Mortality" (manufacturing defects) in the first year.

• Leakage: If you repair those 2-3 pumps internally instead of claiming them, you lose thousands of dollars in parts/labor, plus the value of the replacement asset.

Recovering just one major warranty claim on a compressor or chiller can pay for your entire CMMS subscription for the year.

The Solution: Automated Warranty Flags

You cannot rely on human memory ("Hey, didn't we just buy this?"). You need a system that shouts at you.

Fabrico bridges the gap by embedding the commercial data into the operational workflow.

1. The Installation Date Trigger

When you onboard an asset in Fabrico, you set the Installation Date and Warranty Expiration Date.

• Fabrico: "This asset is covered until Dec 31, 2026."

2. The Work Order "Stop Sign"

When a technician tries to open a "Corrective Maintenance" work order on that asset, Fabrico checks the date.
If it is under warranty, the app displays a Warning Banner:
> "ALERT: This Asset is Under Warranty. Do not repair internally. Contact Vendor X."

3. The Claims Evidence

Vendors often deny claims because you can't prove you maintained the asset properly.
"You didn't grease it, so we won't replace it."

With Fabrico, you can export the full Maintenance History (PM compliance logs, lubrication records) in one click. You hand the vendor irrefutable proof that you upheld your end of the bargain, forcing them to honor the warranty.

Summary: Stop Fixing Free Things

Your maintenance budget is tight enough. Stop spending it on repairs that have already been paid for.

Warranty management isn't about being cheap; it's about being smart. It ensures that your vendors are held accountable for the quality of their equipment.

Let the software watch the calendar so your technicians can focus on the machines.

Ready to stop the leakage?

See how Fabrico automates warranty tracking and alerts.
Book a Demo with Fabrico Today