TCO in practice: “Look at all costs when you buy, not just price”

TCO in practice: “Look at all costs when you buy, not just price”

“We have a customer who makes bus doors, but they don’t do production anymore. All is outsourced, among others to Multifix. Behind the scenes, we make sure that metal and electronics are perfectly connected to each other, with our own fasteners of course”.

Willem Weijers is Sales Manager at Multifix, he likes to talk to customers about how the complete care can be taken away and how the three business units of Multifix, fasteners, special parts and assembly, together can reduce the TCO or ‘total cost of ownership’ of the customer: “That will save the customer a lot of money, without affecting the quality”.

What is TCO?

“The Total Cost of Ownership gives you financial insight in your direct and indirect costs of your (end) product. In addition to the costs of the product itself, you also take all other costs into account, from the moment of purchase to the moment of delivery. This way you can look at the cost reduction of a partner like Multifix, but it’s also smart to take a closer look at your costs internally”.

“There are several ways to reduce your TCO when you choose us as your partner:

  • Convenience: you only have one contact partner, one invoice, one packing list and one delivery;
  • Cost savings: each invoice costs money, so if you buy from many parties your TCO increases;
  • Competitive when it comes to pricing through our global network;
  • We don’t engineer ourselves, but our engineers think along with you, which in turn leads to cost savings. For example, we advise to make a product as a casting part instead of a milling part, the investment in a mould often pays for itself immediately;
  • Logistics: we make a customized logistics system, we can even replenish the stock up to the employees’ workplace”.

“Of course, as a company you can see it as a disadvantage to lay all your eggs in one basket. However, we don’t deliver an end product but a semi-finished product. So then the risk is smaller.”

Do you have an example?

“A customer of ours makes ergonomic seating, perhaps better known as the so-called stand-up chair. We once came into contact with each other and started supplying fasteners. Later metal parts were added. Subsequently, we also assembled the entire frame of such a chair, including an electric motor. And that’s what we’re testing”.

“This customer is especially creative and innovative, they take care of the design at the front and the sales at the back, they have placed the intermediate piece with us. You can say that we have grown along with them, by supplying an increasing part of the armchair”.

“Multifix takes the worries out of their hands, we test it too. We’re always looking for the combination of customer-specific parts, which we can make together with our fasteners, and if necessary electronics can also be added”.

“I’ve been working at Multifix for 22 years now, and have always been active in various sales roles. When I started here, Multifix was still a real trader. The development over the years, from fasteners through specials to assembly, kept the work interesting for me. We are an ambitious company, we roll up our sleeves and seize our opportunities. Fortunately, that results in a lot of interesting work!

More information about TCO: Contact Willem via