What is the real cost in using a high carbon footprint consumable wear product? It’s not as simple as the invoice price, whivc may well be less than 20% of the true cost and in some cases that have been fully explored, it’s been proven to be less than 5%.
As an industry that needs to improve its sustainability knowing the full costs and impact on all stakeholders of high carbon footprint consumable products is now a necessity.
However, life cycle costing and true TCO cost models are somewhat problematic in that it’s not a simple one size fits all solution, but rather an individual model needs to be created for site location and specific applications. The Core cost drivers selected on one site may give a good guideline for other sites with the same equipment, but the Auxiliary drivers will vary based on jurisdiction and site-specific issues.
We work with our customers to develop site-specific cost models in the core expertise areas in which we work with the view of proving that “using less steel less often” and “maximizing the production capacity of installed assets” has significant benefits to all parties
The chart provided shows the potential upside in what may be had if a higher valuing adding product is used over a lesser cheaper one.
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