Tips for Reducing Costs and Improving Profitability in your Business
The competitive landscape in today’s world demands providers to constantly overview ways to improve their profitability. It’s very easy to overlook ongoing expenses, especially as an organisation grows and evolves.
One crucial element is that of equipment procurement, something that – for many industries – represents significant costs.
The Ever-Evolving Requirements of Equipment Supply
Industries, such as oil & gas, nuclear, waste, construction, sub-sea and more have challenging equipment needs. The nature of these highly-competitive fields brings hazardous work environments that demand the ultimate in safety standards. The need for surveillance, maintenance and repair equipment is ongoing, yet it’s common for operators to continue to use apparatus that’s outdated.
There are many reasons for this, not least the crucial aspect to adhere to tried and trusted safety measures to conform to the many required standards.
However, this penchant for clinging to the well-known can mean a failure to take advantage of technology that not only out-performs older options, but that also provides far better value for money. In today’s competitive environment, this can prove hugely damaging to a company’s underlying costs.
So what’s the answer? And how can a company take advantage of cutting-edge technology as it moves forward at what is often breakneck speed?
Breaking with Tradition: A brave new equipment procurement model
The most important element to reduce equipment costs is a shift in the mindset. Operators are often reluctant to embrace change. This is understandably so, and is down to many reasons:
- The need to adhere to strict safety standards
- The cost of changing equipment
- The interruption caused by upgrades, such as the time it takes and the need for additional operator training
- Remote locations and the challenges in bringing in new equipment
- Lack of knowledge of advancing technology
- Distrust or misunderstanding as to the proven worth of newer options
While all of these are common, a failure to take advantage of the latest equipment can represent massive unnecessary costs. Savings aren’t only made through reducing the costs of such equipment – they’re also created through extending the longevity of vital equipment.
Inspection tools are a prime example of this, bringing the ability to carry out proactive maintenance and repair that effectively reduces some of the largest financial outlays – such as asset downtime.
The Advantages of Rental Equipment
Today, probably more than at any time, technological advances are rapidly expanding. A new era of equipment powered by robots and AI is upon us. No sooner does a breakthrough product become mainstream before its next generation is announced. Each upgrade offers further advantages and potential cost cutting. But the purchase of each is simply not viable – especially if the equipment represents considerable outlay.
This is where the rental option brings multiple advantages. Not only do operators benefit from the very latest technology, but they also remove the maintenance aspect of such equipment. Utilising proven new tech without the purchase outlay – plus the knowledge that an upgraded version will undoubtedly soon become available – is a strategic method to drive down costs.
Of course, this doesn’t remove the issue of actually knowing about the latest equipment to take advantage of. That’s where the choice of rental supplier is so important. Whatever the industry, it’s crucial to select a provider that not only embraces the latest technological equipment, but who understands the nuances of an industry and the individual challenges posed.
Perth-based Nexxis have revolutionised equipment procurement (and the associated cost reductions) to industries including nuclear, oil & gas, petrochemicals and mining, thanks to a combination of field-specific knowledge and that of technology.
The company boasts a team with decades of knowledge and the associated challenges, to bring a solutions-based approach that’s as dynamic as operational needs. Discover more about how such a unique flexible model provides an outstanding method of cost reduction at nexxis.com.au