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"The real challenge lies with the retailers, service providers, manufacturers, and suppliers that are not used to looking at total cost from the standpoint of the consumer and are even less accustomed to working with customers to optimize the process on consuming." "While TCO is not new, many providers are embracing it because the potential cost savings is huge. While a buyer may be able to negotiate a 5-10% price decrease for a part, measuring a supplier's performance based on TCO can identify much larger savings." James Carbone, Purchasing.com Magazine, February 2004 "A flat economy puts tremendous pressure on manufacturers to aggressively find ways to lower variable costs, and a key cost savings area for manufacturers to focus on is the Total Cost of Ownership. The challenge for automation suppliers has been to provide manufacturers with a tool that can demonstrate savings on their products and services. This tool should provide Baldor with an effective means to fulfill that challenge." Craig Resnick, ARC Director of Hybrid Manufacturing "With the demand of shorter delivery requirements on the part of our customers ,we see a true benefit to utilizing this program (System-1) more often. This TCO Toolbox appraisal has led to several drive assemblies being purchased using the System-1 program within the last few weeks. Hopefully this appraisal will help others to see the benefits of the System-1 program." Senior Account Manager, Dodge/Reliance Distributor "This (programs like TCO) is why I initiated the alliance with Baldor. If I just wanted part numbers and price, I could go to anyone." Maintenance and Operations Manager, Food Industry Alliance Partner "The TCO Toolbox is consistent with and reinforces the Baldor tradition and culture of providing superior value to customers. With the TCO Toolbox, Baldor has an opportunity to establish itself as the industry leader in delivering value to end-use customers. Although several other companies do value assessments of one form or another, none has the software to make the value process easy for end-use customers, distributors,and OEMs to complete." Dr. Jim Narus of Wake Forest University, co-author of Business Marketing: Understand What Customers Value |
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