Chicago, September 25, 2014 – Littelfuse, Inc., the global supplier of circuit protection, power control and sensing products announced the release of a white paper that outlines a Best Value (BV) purchasing model for power distribution equipment custom-engineered for mining and oil & gas applications. The BV model is superior to the traditional Total Cost of Ownership (TCO) model on multiple levels.
The BV model accounts for factors not typically included in the TCO model to provide a far more complete reflection of the long-term performance of suppliers and their equipment. The white paper outlines how to account for key factors including overlooked “hidden” costs as well as difficult-to-quantify factors that can have a very large impact on real costs.
In a recent survey conducted by Littelfuse among oil, gas and mining engineers, 70% of respondents estimated that hidden costs typically add 10-30% to the purchase price of their power distribution equipment. Surprisingly, fewer than half even track TCO. And at least 2/3 fail to account for hidden costs such as repair, downtime, late delivery, reconfigurations and consulting costs.
The white paper is designed to be an invaluable guide to purchasing agents, purchasing committees and anyone interested in obtaining best value, and enhancing ROI, in specialized custom-designed electrical equipment. “Beyond Total Cost of Ownership: The Best-Value Purchasing Model for Custom-Engineered Electrical Equipment” is available here.
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About Littelfuse
Founded in 1927, Littelfuse is the world leader in circuit protection with growing global platforms in power control and sensing. The company serves customers in the electronics, automotive and industrial markets with technologies including fuses, semiconductors, polymers, ceramics, relays and sensors. Littelfuse has over 8,000 employees in more than 35 locations throughout the Americas, Europe and Asia. For more information, please visit the Littelfuse website: littelfuse.com.