A Good Service Agreement is Worth its Weight in Gold

Guest blog by Bill Keever from MHI Member Company JLT Mobile Computers

Warehouse operators’ quest for efficiency means that every day, hour, and minute has a price. And since their workforce relies on computers to complete tasks, they must avoid device downtime at all costs. However, equipment breaks, and accidents occur. Taking action when something goes wrong, and getting a quick response is therefore of the essence. The more time it takes to get devices fixed, the more negative effects it will have on business.

Apart from getting the device serviced, there’s also the question of total cost of ownership (TCO). When buying a product, it’s important to know what the actual cost of owning it will be throughout its lifecycle.

So, to keep disruption, downtime and TCO to a minimum, warehouse operators need to have a clear process in place to handle the situation and to ensure that any issues will be taken care of in an effective and timely manner. A service agreement helps but finding the right one is no easy task.

Trusting the warranties is rarely enough
All computers, rugged or not, come with a limited manufacturing warranty for a specified number of years, normally around two or three, and often only cover some parts of the computer – like batteries, screens, and storage media. So, if a device develops a defect due to manufacturing, on an included part, within the warranty period, you’re probably covered. Although it can take time to ascertain if it is indeed a manufacturing defect and to organize the repair. All too often, that’s valuable time warehouse operators don’t have!

And, speaking from experience, most device failures come down to defects incurred after production. In industry environments, the wear and tear can be very hard. Drops, spills, exposure to extreme temperatures or constant vehicle vibration all increase the likelihood of a part breaking. In these cases, the warranty won’t apply, and you need a service agreement to get your device repaired quickly.

Careful specification of service needs pays off
Service agreements are a contract between you and the manufacturer, distributor, vendor, or their designated entity to quickly and reliably fix or replace things for you so that you will not incur unacceptable downtime. Service agreements aren’t one-size-fits-all, which is why most vendors offer different service levels. Figuring out which is the best and most cost-effective choice for your specific circumstances can be tricky, especially as many of these service agreements are complex and notoriously come with a whole raft of limitations and exclusions, so it can be hard to know what you’re actually getting or see the value in them.

Before selecting one of the various options on offer, it’s a good idea to assess what specific risks your equipment is actually exposed to and prioritize those you want to be covered for. This includes considering how likely failure is to occur, and what business effect any resulting downtime will have after an hour, after 24 hours, a week later, etc. Complex as such calculations may be, they will help you decide on the turnaround times you need to specify in the service agreement, which may immediately exclude certain providers who lack the necessary supply infrastructure.

From acceptable versus unacceptable downtime, coverage and delivery terms, cost-efficiency, liability, waivers, termination – there’s a long list of diverse things to be taken into account. Great peace of mind also comes from knowing that you can easily get in personal contact with your service supplier and receive committed technical and commercial support. Experts who know you, your business, and your specific needs.

If considering all this before signing a service requirement sounds a bit daunting and time consuming, remember this: A good service agreement is worth its weight in gold as it keeps your operation running when your devices go down. So, the investment into finding the right agreement with the right vendor is time well spent.

Do you want to know more about service level agreements or have any questions? Feel free to contact me directly or come and talk to us in person at MODEX.

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