Bringing Total Cost of Ownership Online
Total Cost of Ownership is about more than working out the finances. It’s about helping our customers understand that their choice isn’t the environment or prosperity; it’s about finding better ways of doing things that benefit everyone. A way that is about understanding the true costs of production over the entire lifetimes of assets.
For many years, society has not fully understood the costs of its economic growth leading to inefficient use of resources, pollution and climate change. As we become more aware of these costs, governments are acting to incentivise cleaner and more efficient ways of producing and living, while penalising those that continue with business as usual.
ERIKS has a core focus on sustainable business and we lead by example, minimising the impact of our operations. We also understand that our skills, knowledge, products and services can help our customers meet the expectations of a more sustainable society. We give our customers the inside information they need to understand how legislation and policies will impact and benefit them. We then support them make the optimum choices for their business. Our focus on the future prepares our customers for a changing world and makes their business better.
An example of our TCO approach is the new online motor calculator tool launched in 2019. When you look at the initial motor purchase price, this is only around 10% of the total costs during the lifetime. What the price tag fails convey is that the biggest cost will be the product’s energy consumption. By understanding our customers’ needs, we provide the optimum motor choice for their business. The tool asks simple questions to understand the intended use and then provides a recommended product with a summary of the maximum savings over its lifetime, including reductions in energy consumption and carbon emissions. Often an additional €200 on purchase price can save thousands over the lifetime of a motor.
As we look to the future, there are many opportunities for businesses in a more efficient and sustainable society. Being ahead of the curve and understanding all elements of the production process can drastically reduce costs and environmental impact at the same. At ERIKS, this is our TCO approach. We work across diverse industries and use our skills and know-how to assess whole manufacturing processes, not just motors. As we digitise our services and approach, our support will become quicker, easier and more efficient; just like we make our customers’ businesses.
Our society is changing rapidly and that is a massive opportunity for industry. The skills and technical expertise we have at ERIKS can help our customers gain maximum benefits from the transition. We understand Total Cost of Ownership. Our focus is on the detail and the future. We make it our business to know the upcoming legislation and where all the hidden production costs may be. Our whole company philosophy is making industry work better and that fits perfectly with a more sustainable society.Timo Vernooij, Business Unit Manager, ERIKS Netherlands.