Flexible Service Agreement: Easy budgeting with predicable costs
Sep 29, 2020
Valmet now offers a fixed price volume purchase agreement to improve your mill operations. Whether it's inspections, outage planning, troubleshooting, tuning, optimization, remote monitoring, training or onsite service - a Valmet Flexible Service Agreement gives you easier budgeting at a significant discount, with predicable maintenance costs.
Benefits
- Discount off regular price
- Ease of budgeting
- Predictable maintenance costs
- Ease of scheduling
- Ease of payment
- Lock in current rates
- Multiyear agreement possible
An agreement with a budgeted bank of hours can be used for any Valmet services - whether onsite or remote, scheduled or emergency.
Budgeted service at your request
The Valmet Flexible Service Agreement package is an annual agreement between Valmet Service and the customer to provide field services. The package includes a mutually agreed amount of hours of service to be used within the agreement period.
The customer commits to a specific level of hours. For that commitment, they can receive a substantial discount. The higher the commitment level, the higher the discount.
Expenses such as airfares, hotels, meal per diems, shipping costs, consumables and equipment rental are not included in the package price. They will be added to the invoice as a variable monthly expense at cost plus 10%.
The customer does not have to commit to Valmet for all field service activities during the agreement period.
What you can expect with the service agreement
In addition to basic ease of mind, the agreement gives:
- Large discount: You get up to 10% off the regular price of Valmet regular service rates.
- Easy to budget: The monthly cost is fairly consistent and only varies by the actual expenses.
- Predictable: Since the monthly service cost is consistent, the monthly maintenance costs vary less.
- Easy scheduling: The mill can schedule well in advance of projects to ensure the preferred service person is available.
- Easy payments: One monthly invoice covers all costs of the program.
- Locks in rates: Rates are locked in at the current rate at the time the agreement was agreed. You ignore rate increases during the agreement period.
- Multi-year agreement: You can lock in the rates and spread the hours over up to three years.
- Customizable package: The quantity of hours is up to you, and ranges from 500 to 2000+ hours during the agreement period.
How does the Valmet Flexible Service Agreement work?
Valmet and the customer agree to a package of hours and agreement period. All hours used under the agreement are converted to equivalent hours based on the type of hour. Expenses are added as a monthly variable cost. The mill is billed once a month.
The Valmet Flexible Service Agreement hours can be applied to any project and any type of field service. In the example below, the mill used the agreement to more predictably budget expert service related to outages for two paper machines over the course of a year.
Service type | Basis | Hours |
PM1 - 1 day outage service | 1 day, travel, prep, post | 40 |
PM1 - Inspection before outage | 3 days onsite plus travel, prep, post | 48 |
PM1 - Annual outage services | 3 service representatives, 5 days, 12 hour days, travel, prep, post | 320 |
PM2 - Annual outage services | 4 service representatives, 5 days, 12 hour days, travel, prep, post | 432 |
PM1 - 1 day outage service | 1 day, travel, prep, post | 40 |
PM2 - 1 day outage service | 1 day, travel, prep, post | 40 |
PM1 - 1 day outage service | 1 day, travel, prep, post | 40 |
PM2 - 1 day outage service | 1 day, travel, prep, post | 40 |
TOTAL | 1000 |
For more information on achieving predictable maintenance costs with easier budgeting, contact your Valmet representative.