TVM (Total Value Management)

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TVM (Total Value Management)

It’s virtually impossible to say just how much a screw costs. The purchase price is just one factor. What it costs in support is another. It’s alarmingly common that the after-sale aspect is left out of the equation, which can lead to a rude wake-up call if there are many returns.

 

It might sound incredible, but it’s true: the purchase value of any component in itself is only 15% of the total cost. We know all too well that every single article number means an administration cost of at least 53,000€ throughout its life cycle. Another important consideration is the number of suppliers you have. Reducing that number even by just one, might well save you over 26,000€.

 

Our clients often possess specialist knowledge when it comes to a particular part of the car. While greatly beneficial in and of itself, this also makes it that much harder for them to keep the bigger picture in mind; technical as well as financial. Having a widescreen overview of both worlds, we don’t mind sharing insights we’ve gained over the years. Maybe that’s one of the reasons one client gave us the responsibility for all his fasteners. On a complete platform.