Service Levels & Service Credits: Met or Missed, Credits, the Cap and the Net Fee
This lesson is part of the course
In this lesson
You test five fictional service levels against their targets, price the service credits, apply the cap and find the net monthly fee.
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Lessons in this course
- The In-House Baseline: FTEs, Loaded Cost, Overheads & Cost per Invoice Locked
- Vendor Pricing Models: per FTE, per Transaction with Volume Bands, Fixed + Variable & Minimum Charges Locked
- Location Mix: Splitting Work across Delivery Locations A, B & C and the Blended Cost Locked
- Transition Costs: Knowledge Transfer, Dual Running, a Severance Placeholder & Contingency Locked
- The Retained Organisation & Governance: What Stays In-House and the Future Run Cost Locked
- Service Levels & Service Credits: Met or Missed, Credits, the Cap and the Net Fee Locked
- The Business Case: Yearly Savings, Cumulative Cash, Payback Month & NPV Locked
- Sensitivity & Decision: Volume ±20 %, Price Swings, Break-Even Volume and a Tornado Chart Locked