You do get what you pay for…
30 June 2020
When it comes to a power transmission chain, Tsubaki proves that buying a quality product results in significant lifetime cost-savings.
The climate in most industries now is focused on cost reduction to protect margins. While this is a noble pursuit – and one that can offer real benefits to a business and its customers – it is important that when it comes to procurement, the Total Cost of Ownership (TCO) is considered over initial cost-savings. While some components may seem like the cheapest solution in the short term, they can quickly prove expensive if regular maintenance, repair and replacement work become necessary.
Tsubakimoto believes that the key to real-world cost-savings lies in an extended, low-maintenance operating cycle.
All too often, when we hear about a business cutting its costs, we hear that the cuts have been achieved by sourcing cheaper components during procurement. However, while these savings may look appealing in the short term, the only real way to gauge success is to look at the total cost of the product throughout its life. Cost of installation, maintenance requirements, downtime caused by early failure, and replacement are all hidden costs which can add up when a budget component is specified.
Read the full article in the July issue of DPA.
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