Here at Equips, we enjoy having lunch delivered. But what drives us crazy is when we use food delivery apps to order from our favorite restaurants and a $15 meal somehow comes out to $50. This might be a slight exaggeration, but between the service fees, delivery fees, convenience fees, and tips, the final total can be a surprise. The same can be true for maintenance contracts with service providers. When we onboard new credit unions and banks we often help audit their maintenance contracts. Often, they are paying for maintenance they don’t need: whether that’s because they have duplicate contracts for the same equipment, or on equipment that is no longer in service. We recommend doing an audit on your coverage contracts every six months. The following are a few things you should look for.
Are you paying maintenance fees on decommissioned equipment?
Often, when equipment management is decentralized, an institution runs the risk of paying for equipment that has since been replaced or decommissioned. We recently spoke to one of our clients and learned their equipment is directly managed by a facilities manager, but the accounting department managed the actual maintenance contracts for the equipment. As a result, they were paying for maintenance on equipment that had been decommissioned when a previous branch closed. In another branch, they were paying for maintenance on equipment that had been replaced or removed. In decentralized management structures, like this example, when equipment is replaced or decommissioned, service providers may not be notified at the moment, and then the change is forgotten by the time renewal rolls around. This is usually a result of a lack of communication between the parties responsible for equipment maintenance.
Are you paying multiple contracts to service your equipment?
Another client recently got into a sticky situation with their service providers. They realized they had been paying for coverage on their equipment from multiple vendors. For three years this had been going on before a change in personnel led to this discovery. In fact, there were pieces of equipment that were covered by three separate contracts from three separate vendors. It was a total mess. Over time, ownership of the equipment moved between departments and each department signed a different agreement. Once again, if equipment management is decentralized, or shifts between departments over time, it is crucial to create documentation on what equipment is covered and by whom. It’s also a good idea to create a process for each stakeholder outlining what he/she is responsible for and who to communicate both equipment and inventory changes with internally and externally.
These problems are usually recognized during the budget season when banks and credit unions perform audits on their branch locations. Otherwise, it becomes an afterthought for banks and credit unions. Here is what Equips recommends: perform an audit twice a year, or as soon as a branch location is closed. As soon as the equipment is replaced or decommissioned, we advise that you communicate this information to all stakeholders so that your maintenance contracts can be updated accordingly.
At Equips, we will consolidate your equipment coverage with all your vendors into one maintenance agreement. We will make sure you aren’t paying double coverage or for decommissioned equipment. When you consolidate, you only need to worry about one renewal date, one billing method, and one agreement. The best part is that you don’t even have to change service providers because Equips has a network of over 500 vendors and is happy to work with yours. For more information on how Equips can help you consolidate your maintenance contracts, give us a call at 866-324-4508 or send us a message today.
Thanks for reading!
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. 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.