Service savings calculations
How would you calculate the savings when you renew a service agreement, as you know the majority of the service agreement (Preventative or Corrective maintenance) would have an increased of 2-5% on annual basis, and I'm wondering if I would consider last year base spend towards the new increased rate I would end up with a negative savings figure.
Could you please share with us your experiences and how would you calculate services savings? is there any relation with inflation rate somehow?
thank you for your feedbacks.
Yaarub Askar, CPSM, CSCMP