Case Study

Case Study #125 | Preventive Maintenance Only vs Full Service Contract: Schneider Electric

Sep 13, 2018 | Case Study

Nationwide Power™ is the leading provider in the critical power supply industry. Our core business is the sales and service of uninterruptible power supplies and UPS batteries, along with supporting other critical power components such as emergency generators, switch gear, and HVAC.

We publish critical power related case studies, highlighting best practices and quality standards. In this case study, we feature a recent scenario where an NP customer moved from a full UPS service contract to a PM only contract in an effort to reduce costs. In the long run, however, the customer’s out-of-pocket expense significantly exceeded the cost to maintain the full UPS service contract.

Product Schneider Electric
Application Technology Data Center
Synopsis Lack of full UPS service contract cost client roughly $29,000 in ongoing, billable repairs.
Preliminary Actions

Ongoing repairs over the course of 6 months.

Customer had placed multiple service calls due to concerns with power quality and issues with their UPS equipment. All calls resulted in billable events. In each event, the required repairs were completed and the UPS was returned to a normal mode.

Resolution

After approximately $29,000 in out-of-pocket expense, the UPS is back to useful operating condition.

The NP recommendation stands for customer to complete preventive maintenance in a timely fashion and reconsider upgrading to a full UPS service contract where time and materials are covered.

Root Cause

In a cost cutting effort, the customer opted for a preventive-maintenance-only contract instead of continuing their full UPS service contract. The difference in price between the two contracts is roughly $1,500. Assuming the customer would not experience any issues with their UPS equipment over the contract period, they could potentially save that $1,500 difference. However, due to the age and condition of the equipment, having no billable incidents was very unlikely.

The customer’s total out-of-pocket expense during the contract period was roughly $29,000. Had the customer invested that $1,500 into the full-service contract, 100% of the out-of-pocket expense ($29,000) would have been covered by Nationwide Power.

In addition, customer was unresponsive in scheduling preventive maintenance service calls to keep the equipment in optimal running condition, further putting their equipment at risk.

Additional Reading The Importance of UPS Preventive Maintenance
Preventive Maintenance or Full Service Contract?

Nationwide Power provides 24/7/365 technical support to ensure that everything operates and transitions successfully before, during, and after any power outage.

Request a quote Call | 800-868-2780 E-Mail

We are your critical power infrastructure partner!

Latest News

Case Study # 132 | Battery Warranty For An MGE 5000 100kVA

Case Study # 132 | Battery Warranty For An MGE 5000 100kVA

Case Study Nationwide Power™ is the leading provider in the critical power supply industry. Our core business is the sales and service of uninterruptible power supplies and UPS batteries, along with supporting other critical power components such as emergency...

Night Out at the Movies

Night Out at the Movies

News Article People. Process. Product. Our team members are a cornerstone of our business. Every now and then, we have an opportunity to celebrate the great work we do together, outside of the office. Last month, our Las Vegas-based corporate office came together with...

Congratulations to our Q2 2019 Safety Award Winners!

Congratulations to our Q2 2019 Safety Award Winners!

News Article As Nationwide Power’s way to say “Thank You!” to our team members for always keeping safety top of mind, four winners are drawn quarterly to receive a mini-shopping spree on us. And the winners for this quarter are… drum roll please… Warehouse &...

Newsletter Signup

Sign up below to stay informed with latest industry trends, products, and news.



0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Solutions

Feedback

July 30, 2019

"Best service money can buy. Thank you for all you do for us. I shall miss you guys when I retire. Thanks again."

View All - Don S
Indiana

Newsletter

Sign up below to stay informed with latest industry trends, products, and news.



Pin It on Pinterest