In-House vs. Outsourced Maintenance

A comparison of in-house maintenance versus outsourcing with multiple vendors or a single source - GE.

In-House
Maintenance

Advatanges

  • Lower labor rate/hr.
  • In-house "team work"
  • Volume discounts - parts
  • Lower cost/repair - unloaded

Disadvatanges

  • Employee/Resource Utilization Risk
    - Eliminates savings from labor/hr.
  • Compensation & Benefits
    - Salary, health, worker's compensation
    - Building, tools
    - Phones, uniforms
  • Part Inventory
    - Holding, shrinkage, shipping
  • EH&S cost/risk

Outsourced Maintenance Multiple Vendors

Advatanges

  • Pay by the job
  • No mechanics to manage
  • No compensation and Benefits cost

Disadvatanges

  • Need to manage multiple vendors
    - Many in many cities
    - Back office department to manage
  • Beware of creeping prices/hours/job
  • No national coverage
  • Cost to cut checks
  • Data entry/collection processes to see records of maintenance

Outsourced Maintenance with one source - GE

Advatanges

  • Similar to multiple vendors
    - Pay by the job
    - No mechanics to manage
    - No compensaiton and benefits cost
  • National coverage
  • Dedicated mechanics
  • Eyes and ears on your fleet
    - Use Premier Services™ (online maintenance management) data from all locations in North America
    - Data analysis and fleet consulting
  • National Repair Standards
  • One invoice process across North America
  • One call does it all