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 #144 | Early Detection on Liebert Npower Faulty Wires

Case Study #144 | Early Detection on Liebert Npower Faulty Wires

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 (UPS) and UPS batteries. Our 57,000 square foot warehouse, with over $10 million in parts and...

Case Study #143 | Eaton 9395 450kVA

Case Study #143 | Eaton 9395 450kVA

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. Our 57,000 square foot warehouse, with over $10 million in parts and...

Case Study # 141 | APC Symmetra LX Power Module Replacement

Case Study # 141 | APC Symmetra LX Power Module Replacement

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. Our 57,000 square foot warehouse, with over $10 million in parts and...

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

September 17, 2020

"Fantastic job by Darren. This is why everyone should have a maintenance contract in place. Had I not had a contract, then I would not have known I had batteries failing and would have been up a creek if something had happened. Darren explained in detail what needed to be done, and I am thankful you have such a conscientious worker. Hats off once again for his dedication to his job and working with us to ensure we don’t have any issues with our UPS. Thanks Darren."

View All - Dennis W
Louisiana

Newsletter

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



Pin It on Pinterest