AMC Meaning
In any business transaction where sellers sell equipment or products to buyers for which regular service or maintenance is required for its effective functioning, it is suggested for both the parties to enter into an agreement in terms of servicing that equipment or products. This agreement is commonly known as AMC or Annual Maintenance Contract, and it is essential to systematize this process.
Customers appreciate AMC because they get an opportunity for periodical maintenance of hardware or software problems in their business at a very nominal cost. Also, periodical maintenance of customers' equipment/systems gives them maximum yields and ensures that there is minimum downtime, and guarantees that they will always have specialised service at their disposal.
What is the Full Form of AMC in Maintenance?
The AMC full form in maintenance is the Annual Maintenance Contract.
What is an AMC Service?
AMC service is an agreement between the company and service provider that ensures the ongoing maintenance of machinery or equipment that the company purchases from the service provider. The AMC service ensures that the service provider will surely replace or repair the equipment sold to the customers when they are not functioning or otherwise agreed between two parties so as to minimize the consequence impact on downtime or irregularities in ensuring business continuity.
Annual maintenance service is applicable for landscaping, building, computers, machinery, technically enhanced furniture, or any other technology or business system that requires post-purchase service and maintenance. In some service industries, AMC is surely more pervasive than others. For example, manufacturing, food service providers, retailers, and health care centers demand more maintenance than say, an office.
Types of AMC Service
There are two types of AMC service. These are:
Comprehensive Service
In comprehensive SMC service, the analysis of breakdown/falls in the hardware and repairing service is taken care of by the service provider. This includes replacement of spare parts. Apart from this, preventive maintenance is also done on a predetermined/agreed frequency.
Note: All physical mishandling or damages are not included in comprehensive service.
Non- Comprehensive Service
The non-comprehensive maintenance service refers to the preventive maintenance of equipment as per schedule which includes engineering and labor charges. In this service, the cost of spare parts replacement must be paid by the customer.
What Does an Annual Maintenance Contract Format Include?
A general AMC format includes the following points:
Name and address of the parties involved in the contract, usually a business and the company providing the service.
Annual maintenance contract terms and conditions
Price of the contract
Penalties for contract termination or breaking the contract
How frequently do your techs need to service the products?
List of the equipment covered for the service
How long does the contract will last and the way contract will be managed
A proper place for both the party’s signatures and dates.
What are the Advantages of Availing An Annual Maintenance Contract?
Here are 7 benefits of having an annual maintenance contract:
Save Money And Makes Budgeting Easier
When you are aware of how much you will pay for your maintenance needs and to whom you will be paying, it makes budgeting easier for your business and that is something that should not be certainly underestimated. This will not only make your financial management easier but also drains the uncertainties of your business.
Also, many businesses will observe that they can save money when they have an AMC in place on which they can rely. You will be aware of what you're paying for the next coming years and those prices cannot unexpectedly rise and eventually enable your business to save a lot of money.
Periodic Evaluation
The AMC service provides companies with a regular evaluation of their business. It will prevent the unexpected damages and failure of the system which enables your business to minimize several losses. The periodic evaluation also ensures the good hospitality of your organization.
Expert Technician at Your Disposal
It is always better to have a range of technician experts at your disposal whenever required. Knowing that you can call and rely on them to do the right kind of work for your business can be a big relief.
Highly Secured
A business with reliable AMC service will be highly secured and flexible
Focus on Your Core Business Activities
You can completely focus on your core business activities without worrying about the maintenance cost.
Emergency Service
You never know when an emergency can arise and you need to be properly aware of these moments. No one wants to be caught red-handed and not knowing what to do when there is an issue with their equipment or technology, and having a reliable AMC at your disposal can combat such problems.
You will be able to call the maintenance people helping you and they will be able to solve all the problems you are facing. With this, you don't have to worry about finding the people to help you, and hopefully, everything at your workplace will be fine in no time.
Unwanted Reduction of Expense
Calling an expert technician with whom you have assigned a contract is cheaper than calling a technician when required. The service provider company offers different contract packages and offers, you can choose your own best contact and save money.
FAQs on AMC Full Form
Q1. What is an Annual Maintenance Contract?
Ans. An annual maintenance contract is a maintenance and repairing service offered by the service provider and manufacturer to the customers at an exchange of price once the manufacturer's warranty is over. The annual maintenance contract enables customers to maintain their product in an efficient working condition usually for one year for free of cost.
Q2. What are On-Site and Carry-In AMC’s?
Ans. Under ON- Site AMC, the service engineers will come to your residence or office and do the repairs or carry the defective piece with them to the workshop and return it to you when it is prepared.
Under Carry- in AMC, you have to carry the faulty equipment to the service center and get it repaired.
Q3. What is the Annual Maintenance Contract Period?
Ans. Through an Annual Maintenance Contract, the service provider provides service to their customers either by themself or with the help of other service providers. The AMC contract period varies as per the mutual understanding of both parties. Generally, the AMC period is of one year but it can be extended up to three to five years as per mutual consent.
