Driving down costs, driving up efficiency
Using the experience from our own internal optimization processes, we launched a Total Supplier Concept for selected Marine customers in 2005. Through our comprehensive product range within Industrial Automation – including a wide range of valves, pressure switches and sensors, temperature switches and sensors – we were able to offer significant cost reductions. The Total Supplier Concept proved a success and we are now ready to continue the roll-out.
The savings are not just limited to our products. The Marine trial also demonstrated huge potential for lowering the operating costs of our customers. By reducing the number of suppliers, our customers have experienced a major reduction in costs for order handling, delivery receipts, etc. But costs connected to maintaining a supplier base also have to be taken into account. Fewer suppliers mean less expenditure on supplier visits, negotiations, and account maintenance costs.
An integral part of the concept is that we also enter into a close dialogue with the technical/engineering department of the customer to optimize the performance of the application and rationalize the number of variants used. Fewer and dedicated variants mean less costs for component database maintenance, documentation production, and service and warranty costs.
Our target is satisfied customers with whom we can develop a close relationship over time, lowering total cost of ownership, and creating value for both parties.
By Per Sønderriis, Sales Support Manager