How Traceability Systems Reduce Scrap and Warranty Claims

Introduction: Why Scrap and Warranty Claims Hurt Profits

• Scrap and warranty claims affect mid-sized manufacturers in terms of quality and profitability. Scrap wastes material, energy, and labour, while warranty disputes damage customer trust and increase financial liability.
• Traditional methods such as manual logs and end-of-line inspections rarely detect problems early. Modern Traceability Systems allow manufacturers to account for every component and prevent losses digitally.

The Cost of Not Having Traceability Without a proper traceability system:

• Scrap increases because defects go unnoticed until late in the process.
• Warranty disputes rise due to missing or unreliable production history.
• Audits stall because records are incomplete or inaccurate.

These issues lead to lost revenue, delayed deliveries, and weaker customer relationships—especially for OEM suppliers in global supply chains.

 Why Traditional Quality Checks Fall Short

• Manual inspection leads to human errors.
• Legacy PLCs provide no digital production history.
• Batch-level checks offer no part-level accountability.

Reactive checks only detect defects at the end, not at the source.

How the S2R2 Traceability System Solves the Problem

S2R2 Technology builds plug-and-play traceability systems designed for mid-sized facilities running legacy equipment.

    Key Features

• Part-Level Identification – Each part receives a unique ID.
• Serial Number Tracking – From assembly to dispatch, every part is recorded.
• Custom Quality Checkpoints (CQC) – Workstations flag defects immediately.
• Digital Audit Trail – The system stores production data for warranty claims, compliance, or root cause analysis.

         Proven Results on the Shop Floor

• A foundry reduced rework by 25% within 90 days after detecting defects at checkpoints before machining.
• An OEM supplier cut warranty disputes by over 50% by validating claims with production data.

We deploy our systems quickly and with minimal disruption.

Business Impact Beyond Scrap Reduction

• Direct Cost Savings – Reduced scrap and rework.
• Warranty Protection – Reliable data strengthens customer confidence.
• Compliance-Ready Records – Faster audits and easier exports.
• Scalable Deployment – Expand from one line to plant-wide dashboards.

When combined with Predictive and Production Monitoring, traceability prevents downtime and defective output.

Why Manufacturers Choose S2R2

• 200+ deployments in Indian factories.
• Trusted by automotive, electrical panel, CNC shops, OEMs, and foundries.
• No need to replace PLCs on existing machines.
• Visible results within weeks.

Conclusion

If scrap and warranty claims reduce your margins, act now. S2R2’s Traceability System deploys in less than a week and has helped more than 200 manufacturers achieve measurable gains.

 Disclaimer

This article is for informational purposes only and shares real-world manufacturing practices. Results may vary depending on plant conditions, processes, and implementation. S2R2 provides these insights to help manufacturers make informed decisions about digital transformation.