Outsource Repairs? Or Repair In-House?

By Dan Meyer, Chief Revenue Officer, Repair Authority

When that invoice arrives from your equipment repair center, it’s understandable to ask yourself: “Should we keep outsourcing repairs or fix our equipment in-house?” That’s a business decision that dealers must make for their unique circumstances, but here are some factors to consider.

Diversity of your fleet

If you are a full-service respiratory provider, the cost and complexity of a repair operation compounds with every make and model in your fleet. Each requires different diagnostic and repair tools, as well as its own inventory of needed parts. Installing a single ventilator repair station, for instance, can cost more than $20,000. For dealers with multiple branches and a large and diverse fleet, the investment would be significant. However, for a small dealer focused on PAP only, for instance, in-house repairs may be a manageable venture.

Manpower and training

When weighing the human capital that in-house repair requires, think about more than just salary. Each type of equipment requires time-consuming training that is continually updated with new manufacturer guidance. Calculate the productivity rate you’ll need your repair technicians to achieve, then do a dry run. If you need each technician to repair 15 concentrators a day to achieve cost savings, for instance, be sure that’s an achievable standard.

Logistical readiness

Make sure you have space available in your warehouse not only for repair, but also for parts inventory, quality control stations and staging areas for equipment headed in and out of your repair lines. Also consider how movement of broken equipment will impact your current vehicle routes.

The bottom line

What are your repair-related KPIs? Reducing costs? Controlling quality? Increasing turnaround time? Be sure to get a full picture of the costs and benefits to determine whether in-house or outsourced repair is the best choice for your business.

This article originally appeared in HME News. Read more.