An OEM contract is used by a company that takes product components from one or more companies to build a product that it then sells under its own brand and company name. 3 minutes read time Remote monitoring often allows your service representatives to identify potential issues before they cause downtime. Sometimes you don`t even need to contact us to tell us something is wrong. we already know that. A case on-site service engineer will do everything in their power to resolve the issue remotely, and if that is not possible, it will be sent immediately. And because they live and work in the surrounding community, they can get there as quickly as possible (an average of 58 minutes in Cassling, well above the industry average). As an OEM subcontractor, Anderson Dahlen can provide end-to-end engineering and manufacturing services. Contact us today for a full consultation on your next project. These questions need to be answered and resolved before the final OEM agreement is drafted to ensure that the parties agree. While the answer comes down to a relatively simple ”yes” or ”no,” the implications are more complicated.
For an Original Equipment Manufacturer (OEM) service contract to make sense, your team needs to determine that you`re getting a reasonable return on investment. With $7,500 a day at stake, it`s not hard to see why they chose a case service contract. $7,500 is a lot of revenue loss if you don`t have a reliable backup that can be ordered immediately for your patients. Let`s imagine that the plant experiences about six days of downtime per year, which is roughly the industry average of all systems for installations that do not require a service contract. Over a ten-year period, the typical period for which a hospital will deploy its CT system, this represents an incredible $450,000 in lost revenue. While there are many things to consider, signing an OEM license agreement can be a strategic way to grow your business if you ask the right questions. Joe began his career at Cassling in 1985 as a field service engineer and project manager, where he installed and maintained various types of imaging equipment in our Midwest region. Over the years, Joe has held various leadership positions within Cassling`s service team, including Regional Director of Services. Today, as Vice President of Service, Joe leads the entire device implementation and service teams while working with customers to develop customized service solutions. All this then adds up to significant cost advantages, both in the first production and later in sales and support.
Working with OEM contract manufacturing services allows companies to get the most out of their own investments, minimize new infrastructure investments, and continue to expand into new markets. We work directly with hospitals to develop service contracts that make sense for their particular financial situation. We know that everyone (including the patient) wins when the equipment operates with maximum efficiency, and this is only really possible with a reliable service contract. If you are able to sign an OEM license agreement, there are many factors to consider. While this type of B2B relationship can be very valuable in helping you grow your business, you also need to make sure that you are diligent in protecting your brand. This applies to everyone involved. With a service contract, you get regularly scheduled preventive maintenance to carefully assess potential issues before they occur, as well as software updates and upgrades that keep our system up to date and up and running. You can see where a service contract really starts to carry its full weight.
Service is really an investment, and you rightly expect a reasonable return. Among the things to ask before concluding such an agreement are: the administrators of this facility also recognized the favorable situation and therefore decided to buy a service contract with their new CT scanner. When it was time to renew, they did so in a step that was described to us as a piece of cake. Regardless of the size of the equipment, an OEM-certified service contract minimizes downtime that results in lost revenue and a poorer patient experience. It does this in a variety of ways. For all these reasons, we are able to achieve the industry`s best uptime of 99.9%. This means far less revenue loss than you might expect if you give up a service contract, saving the healthcare facility literally hundreds of thousands of dollars over time. With an OEM service contract, you not only get preventive maintenance, but also access to experts to oversee repairs. Your specialists will understand these systems intuitively, as they work exclusively with that particular device manufacturer (in our case, Siemens Healthineers). They know what to monitor and the approximate lifespan of each component in a given system. Simply put, an OEM is an outsourced company that takes care of creating equipment that the rental company cannot manufacture itself. OEM contract manufacturing services are available for virtually any industry and allow leading manufacturers to expand their product or service offerings with minimal additional costs.
What about the inevitable moments when, despite all the possibilities, something is wrong? Here, the OEM service contract proves itself in a different way. We conclude with a quote from the Director of Radiology in the example above. She was ready to explain why a service contract was the right choice for her institution. For this director, the performance of the service contract has been more profitable than that of the initial investment: in the past, OEMs generally focused on selling between one company and another, while RVs marketed to the external public or other users. Today, more and more OEMs have decided to sell their services or parts directly to consumers. This makes these companies a VAR in a way. An example of this is a person who can build computers on their own computer by purchasing graphics cards and processors directly from Intel or another retailer that has these products in stock. ”Thanks to our preventive maintenance visit, we knew that our CT scan would only work for two days. If we hadn`t had the service contract, we would have had to make an unexpected emergency call to get help from the service team.
The engineer should have arrived, found the source of the error, ordered the spare part and returned to install it. This would have led to a system failure of a day and a half. Thanks to the PM`s visit, the CT scanner was available after four hours of repair. This saved me eight hours of downtime and avoided a $7,500 loss of revenue. Let`s take a look at a concrete example of a CT scanner demonstrating the value of a service contract. In addition, the muffler manufacturer ultimately doesn`t have much (if any) influence on the final design of the car, and Microsoft is probably not too interested in the color of the computer. If the muffler does not work or Microsoft Office does not work properly, it is the responsibility of Honda or Best Buy to carry out the necessary repairs. The OEM license agreement ensured that the muffler or software was properly manufactured and, in turn, properly installed by Honda or Sony. It is important to clarify control and brand issues at the beginning of forming an OEM agreement. A difficult topic, especially when creating an OEM agreement, is the issue of brand identity. This needs to be taken into account, including the following: The OEM license agreement exists between the different parties to resolve trademark, confidentiality, payment, quality assurance, and timing issues.
Read 4 min In addition, OEMs can often offer other significant advantages over in-house manufacturing management. This article briefly summarizes some of these benefits. Downtime can affect your facility`s ability to meet revenue goals, especially for small hospitals or clinics that can`t rely on a large fleet of backup units when intervention is needed. The e-mail address cannot be subscribed. Please try again. Service coordinators can monitor your computer remotely for signs of a possible failure. After all, this is really the best way to minimize downtime: make sure it doesn`t happen in the first place. Every purchase of imaging equipment comes with an important question that your team needs to answer: Learn more about FindLaw`s newsletters, including our Terms of Service and Privacy Policy.
This website is protected by reCAPTCHA and Google`s privacy policy and terms of use apply. An original equipment manufacturer (OEM) is a company that manufactures parts that can then be marketed to another manufacturer. For example, if Company A makes cables that can be used as phone chargers and Company B makes mobile phones that supply Company A`s cables when purchasing their phones, then Company A is an OEM. Company A will manufacture the cords using the brand and specifications specified by Company B. While Company B will ultimately focus on a consumer relationship, Company A as an OEM will focus on a business-to-business (B2B) relationship; their consumer is another company. .