The financial world is changing. Over the past several years, we’ve seen a significantly increased reliance on technology, resulting in more sophisticated equipment in financial institutions. In cost-savings efforts, many institutions have shied away from only using maintenance contracts and now find themselves with a mix of contracts and time/material billing structures.
It’s time to ask – is that strategy really providing cost savings? In my experience, most financial institutions lack true accuracy in accounting for their equipment maintenance costs. Equipment repair costs are often co-mingled with all other “repair costs.” Following are some aspects to keep in mind as you look at assessing your budget for equipment maintenance.
Make sure you are aware of the impact that multiple expiration dates for multiple providers at multiple locations truly have on your budgeting data. To simplify future budgetary processes, it is worth the effort of having as many contracts as possible with coterminous expiration dates. By doing this, you will eliminate the need to pro-rate and you will be better able to calculate the impact of the annual maintenance contracts cost increases.
Time & Material
There is much to consider and specific actions to take when operating under a time and material maintenance structure:
- Record the frequency of service on each piece of equipment
- What is the average cost per service event?
- Compare service time and material service cost with previous maintenance contracts costs
- Does actual service history suggest any anomalies [too many service calls, service calls too expensive]
- Make sure to monitor warranties on all replaced parts
- Know which parts receive a core charge credit and what the credits should be
- Identify all competitive service providers and negotiate labor, travel and parts discounts
Juggling multiple vendors, multiple locations, multiple expiration dates and the nuances associated with a time and material servicing strategy can be the recipe for an accounting nightmare and surprising cost overruns. Equips can help you increase your accounting accuracy and simplify your budgeting while still maintaining a high level of equipment performance. Schedule a complimentary peer analysis at firstname.lastname@example.org and learn how you can have one agreement and a powerful online platform to service and manage all your equipment in the most efficient and cost-effective manner.
Equips is revolutionizing how Banks and Credit Unions manage, maintain, and protect critical branch equipment. Leveraging a network of 500+ vendors, experts at Equips help Financial Institutions respond to equipment problems quickly in one place: Equips.com. Active management allows Financial Institutions of all sizes to improve operational efficiency, cut costs, and streamline equipment inventory and vendor management. Our groundbreaking solution provides clients across 45 states with better insight and transparency into their critical equipment and enables employees to do their best work. To learn more visit equips.com.