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Advantages of Third-Party Check Processing Machine Maintenance for Financial Institutions

Financial Institutions are finding many benefits from adopting a third-party maintenance (TPM) approach to managing and maintaining check processing machines such as NCRs iTran units. FI utilization of TPM arrangements is increasing because of the significant cost savings, contract support and flexibility, a simplified vendor relationship, and the ability to extend machine life that result. Whether looking to acquire parts, find reliable servicing, repair, refurbishment, refitting, or machine removal, the value of partnering with an experienced check processing and legacy machine TPM reaps many benefits.

Here are the top advantages of a third-party maintenance provider support solution:

Cost Savings

In two different recent studies, both Gartner Group and Forrester Consulting found that cost savings to companies that use a TPM can typically be 50-70%. Forrester notes that companies would be motivated to switch from an OEM maintenance provider to a third-party with just a cost savings of 10%. This explains why TPM arrangements are rising.

With expert repair services for specific machines like NCRs iTran, financial institutions will minimize costly downtime. By taking a proactive approach, you can implement a TPM arrangement that significantly minimizes the cost of machine downtime.

Parts and service, an integral part of a TPMs pricing, is less costly due to economies of scale.

In addition, companies reduce direct labor costs associated with machine maintenance when they outsource this function. The savings are measurable.

Customized Support

One of the key advantages to working with a TPM provider is that contracts are flexible, and can be customized to your needs. Companies are implementing service contracts that benchmark equipment expectations to deliver cost savings across labor and inventory, as well as equipment utilizations. The decision to work with a TPM instead of an OEM provider is a breakthrough for many companies when they find out that OEMs no longer support their own equipment.

With a strategic TPM approach, you will reduce the risk of machine downtime which might impact customer relationships. Fix issues fast when they happen with experienced technicians who have years of training on specific processing machines. A preventive maintenance plan can help avoid urgent repairs altogether.

Productivity improves when these measures are in place which leads to more cost savings.

Simplified Vendor Relationship

One of the issues that a TPM arrangement can help companies solve is to streamline or simplify various vendor relationships into a single source. This eliminates multiple contracts requiring you to keep track of multiple warranties. It gives the customer a single contact who can expertly deliver a wide range of solutions.

Extended Product Lifecycle Support

OEMs want to sell new machines and equipment, not support what they take offline. Third-party maintenance providers specialize in delivering service and repair well beyond the end of manufacturer support and product lifecycle.

Outsourcing this function to a third-party can extend the useful life of your equipment. Also called ‘asset sweating’ – this approach allows companies to upgrade machines on their own timetable not the manufacturers which helps to control capital and operational expenditures.

Unlike OEMs, third-party maintenance companies will be able to continue to support your equipment and keep it operational with their experienced technicians who are trained on an array of legacy equipment. An inventory of parts is another service that TPMs provide and should be considered when deciding on a provider. Many people wrongly believe that replacement parts are only available through the OEM.

Deciding Between TPM and OEM Support

Companies need to reduce the high cost of maintenance because it can cripple innovation, short-changing other areas of the company that require investment.

More companies are deriving unexpected value from working with a TPM provider. However, companies must perform their own due diligence to see if an OEM versus a TPM relationship can meet expectations for cost savings and other improved efficiencies.

Contact Qwinstar for more information on check processing maintenance service solutions for financial institutions.

Qwinstar has 40 years of renowned service achievements as a premier third-party maintenance provider that supports an array of products ranging from complex electro-mechanical devices to image scanners and printers that support financial institutions. The Qwinstar Technician Training Program is the TPM industry’s most comprehensive and rigorous, with all technicians trained to monitor, maintain, troubleshoot, and repair both IBM and NCR machines. Contact: Mike Atchley Managing Director Qwinstar Corporation, A division of 3 Point Alliance, Inc. Phone: (651) 483-3321 URL: http://www.3ptalliance.com Email: mike.atchley@qwinstar.com

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