Companies should take into account more than just overall operating costs if they want to be competitive in the long term. An integrated approach is far more important. By looking at the Total Value of Ownership (TVO), the effectiveness of business investments can be described more comprehensively, from the right perspective, and therefore more meaningfully. It is important to include economic as well as ecological and social aspects when developing machines and systems, as the BEUMER Group does, making it not just a supplier but a strategic partner for postal and CEP companies.
“The pressures on postal and CEP companies in a competitive environment are increasing. Not only must they save costs but they must also reduce environmental impact and respond to influential market trends,” describes Martin Mossinkoff, globally responsible director of the business segment “Logistics Systems”. These include new technologies, the increasing use of new sales channels such as e-commerce – which raises high customer expectations for immediate deliveries – and also growing globalization. As a result, the demand for more efficient sortation and distribution systems continues to grow throughout the world.
For example, the gross domestic product in many countries in Asia is steadily increasing which, in turn, is leading to an increase in wages. This is particularly noticeable in China and India. A new middle class has come into being which is significantly changing the consumption pattern of the population in the developing countries. The volume of trade is increasing and purchasers are demanding ever-shorter delivery times. “This is also affecting the working environment, for example in distribution canters. Here too, it is becoming necessary to think and act more globally whereas local orientation of such service providers is reserved for niche markets,” says Martin Mossinkoff. Postal and CEP companies must therefore be able to adapt flexibly and dynamically to changing requirements in order to survive in the marketplace.
Investment for improved competitiveness
“The trend towards automation continues to be important for the survival of service providers, and is therefore strongly increasing in distribution centres. Material flow technology is becoming more complex, and systems must be able to carry out more flexible tasks or be adapted to suit changing local situations,” Mossinkoff explains. Highly efficient processes are required to enable parcels to be dispatched to customers quickly.
For example, e-commerce and mail order companies have recently also been offering products which, up to now, have been difficult to transport automatically because of their dimensions. However, the automation of existing solutions or the integration of new machines and systems is usually accompanied by significant costs for the user. To enable them to make these strategic investment decisions in a targeted manner, companies must analyze all direct and indirect costs in advance in order to calculate the Return on Investment. In doing so, they should set their sights on more than just the procurement and operating costs.
To enable companies to work efficiently, their machines and systems and the associated production processes must be directed towards long-term customer benefits. “That’s why we develop all solutions with an integrated approach, the Total Value of Ownership (TVO),” says Mossinkoff. “While the Total Cost of Ownership (TCO) exclusively takes into account the economic aspect of a product, TVO is based on and includes ecological aspects such as energy-saving operation or resource-conserving production as well as social factors.” Examples of these include sorters which run very quietly and therefore produce only a small amount of vibration. This makes for a more pleasant working atmosphere and less noise pollution.