Case Studies

Third-Party Maintenance Case Study | Retailer Saves Over $264K

Challenged by its finance department to create cost efficiencies, a retailer sought changes to its large-scale data center operations. The core challenge was to meet its transformation objectives goal with a limited IT budget.

Lowering costs was key to the retailer’s objectives, which made the selection of Service Express as a long-term partner the right choice.

Challenges Uncovered

Overspending on unnecessary services

Service Express connected with key stakeholders to learn about the service gaps with the current provider and how they impacted operations.

Service Express identified several roadblocks including:

  • Overspending on post-warranty maintenance by paying for 24/7 coverage on all systems regardless of the criticality
  • IT department spending time installing shipped parts from partner despite paying for 24/7 onsite service
  • Following the traditional OEM refresh cycle – resulting in the high cost of refreshing equipment every three years

After Service Express presented the identified challenges, the retailer moved forward with strengthening its support strategy.

Industry:
Retail

Location:
New York, New York

264K
In OpEx savings

60%
Decrease in maintenance costs

Extended hardware refresh cycle by 2 years

The Service Express Solution

Extended the hardware refresh cycle and improved service delivery

In addition to improving service levels, the Service Express solution centered around addressing the current hardware refresh cycle, which consumed a large percentage of the IT department’s CapEx and OpEx budgets.

Given that the existing equipment met the retailer’s needs, Service Express suggested a new approach to its refresh strategy:

  • Extending the hardware refresh cycle from three to five years
  • Customizing service levels by criticality
  • Providing an onsite engineer response for all required repairs

The Results

Created a long-term strategy to reduce OpEx and free up internal resources

Opting for Service Express’ recommended solutions, the company reconfigured its hardware refresh cycle and equipment coverage approach. As a result the IT department saved over $264K annually in OpEx costs and decreased maintenance spend by 60%. Service Express increased the productivity of the IT team by freeing up its time to spend on essential projects and innovations.

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