Most business operations rely heavily on electronic equipment, and when it malfunctions, it can be costly.
In most cases, a business purchases a service contract from the original equipment manufacturer (OEM) or a third-party vendor to maintain its equipment. And while service contracts give business owners peace of mind, they can be expensive and are often limited. Business leaders typically rely on the advice of the person selling them the equipment and are unaware that there are other options.
“Businesses are finding that an equipment maintenance management program (EMMP) is a worthwhile solution to the hassles and expenses of equipment maintenance,” says Terry Quinn, vice president of business development with Aon Risk Services, which partners with The Remi Group, an EMMP administrator for the state of Indiana. “EMMPs consolidate various maintenance contracts into a single contract, which eliminates multiple contracts with multiple vendors, thereby creating ease and transparency.”
Smart Business spoke with Quinn about how to save time and money by using an EMMP.
Why should a business consider an EMMP?
Equipment maintenance management programs save money, provide transparency into maintenance expenditures and give businesses the freedom to use their favorite service provider for each equipment maintenance event. An EMMP aggressively manages the maintenance of a business’s entire equipment portfolio and centralizes equipment maintenance management by administering an online system that reports on equipment and vendor performance. In addition, an EMMP offers simplicity of management of both equipment and vendors, ease of administering the program and cost savings.
Who should use a maintenance program, and what is covered?
Anyone who purchases electronic equipment or maintenance contracts, including health care providers, commercial, educational, financial and government institutions. EMMPs work well in large organizations with established hierarchy and multiple departments and facilities, where accounting of equipment service contracts is decentralized.
Companies that have retired equipment still covered under a contract or that are unsure of the location of service contracts may find an EMMP’s transparency useful. Equipment can be added or deleted at any time with written notification and cost is adjusted accordingly.
Equipment covered is basically anything that is electronic and plugs into a wall, including medical equipment, laboratory and research equipment, financial equipment, general office equipment, IT equipment, communication, security and mail room equipment.