Product optimisation offers value, pares cost

Over the years, there has been substantial change in project procurement. Initially, the thought was to only invest in capex. However, with more experience in the operating heavy earthmoving machineries, buyers are not merely buying the equipment.

Today, the standard practise is to bind the original equipment manufacturer (OEM) to the performance of the equipment being offered. This may be in the form of full maintenance contract (FMC), maintenance and repair contract (MARC), cost cap, cost per ton or guaranteed parts for a period of years. All these maintenance contracts are aimed in keeping the machine available and running at its highest level of productivity.

Delivering value in offerings
“We believe in developing values in our offerings. We do this through regular investments in research and development, as well as by asking for feedback from our existing customers. We then try to develop and implement state of the art technologies in our product offerings to match what we’ve heard in our vice of customer research (VOC),” according to Samaresh Mitra, National Sales Head – OE, Komatsu Mining Corp.

Though the initial cost of product is important, the company tries to optimise its products to offer the best total cost of operation, which delivers the best overall value to the customer.

Ensuring uptime, safety
Most of the company’s latest technologies are targeted at remote health monitoring of the equipment, i.e. keeping humans away from machines. It also aims to anticipate the failure of components in advance, so operators can take preventive measures to reduce downtime.

Both of the above technologies ensure that the equipment is available for operation without any unpredictable downtime or safety issues.

“To make procurement effective, we offer various optional items. The user can simply select these offerings from a list provided to them to meet the requirements of their customised machine,” he said.

Additionally, initiatives like “Make in India” are a big boost when it comes to drawing foreign investment into the country. The purchase preference clause linked with this initiative has made
various global manufacturers like think of investing into manufacturing in India. In the past, the majority of the equipment was imported.

However, with the implementation of this policy, the company have plans to localise a substantial amount of this equipment in India. This would surely help the manufacturing sector contribute to the GDP and growth of India.

Initiatives like Make in India are a big boost when it comes to drawing foreign investment into India.
Samaresh Mitra, National Sales Head – OE, Komatsu Mining Corp.