• Case Studies

    OEM Parts and Equipment Pricing

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A review of OEM offerings with parts pricing and supply of major components to identify alternates and cost savings for project lifecycle

The Background

  • How does parts pricing affect operating costs?
  • What are the key components of costs?
  • What is the appropriate rebuild times and pricing?
  • Are we getting the best deal on equipment?

How the Siecap team helped

  • Leveraging existing knowledge and industry relationships, a review of all parts pricing was undertaken with all OEMS
  • Options developed to consider non-OEM parts and components and extended major component rebuild hours
  • Analysis performed to calculated savings over life of project
  • Completed review of equipment pricing offered by OEMS
  • Provided comparative review of equipment fleets and determined suitability of equipment

Results

  • OEMS were able to offer better parts pricing with discounted parts, without 100% commitment
  • Agreed on risk share with component cost capping
  • An 8-10% parts saving made of life of project
  • Better long term OEM pricing obtained and support services received (training, warranties, etc.)
  • Use of low hour used machines for non-critical jobs

Case Studies