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Service Contracts Management
Transcript of Service Contracts Management
Achieving Savings Through
Elements for Success
Have a complete and updated inventory of all vendor service agreements
Do a comparative analysis
Analyze future needs
Analyze service options available
The Process Step by Step
Warranties or service contracts expiring in the next 90 to 120 days
Future availability of service and parts support?
SW & HW
HW & SW upgrades coverage
Service equipment cost
Travel & labor rates
Project service cost
use historical data,
Implement service model
Identify service agreements expiring in the next 90 to 120 days
Optional coverage cost
Lack of service history information on CMMS
Vendors reluctant to provide info to a third party
Stakeholders' resistance towards service contracts review process
The success of the review process highly depends on "good data"
Make sure stakeholders understand the value of the process
Develop your own tools to organize and analyze data
Be creative to present data in a meaningful way
Continuously monitor service
Vendor's adherence to the
service level agreements
What is the best service option?
What other options are available?
What are their pros & cons?
1. Review current service contracts
2. Evaluate alternative service options
Should I buy a service contract or go T&M?
achieve savings while maintaining
service support effectiveness
T & M
Weigh pros and cons
Estimate total service cost
PMs and inspections
SW & HW upgrades
Preserving quality of service support
while achieving cost savings
for your attention!
Medical Equipment Service:
What's the Best Option?
Get the stakeholders' support and input
How is the
What's the utilization level of the device?
How critical is the device?
How reliable is the device?
Chief Technology Officer
Is T&M worth the risk?