When purchasing gaskets and seals, many buyers focus on the initial cost. While this can result in obtaining the lowest price product, that buying decision is not always the right one. Low price gaskets and seals may be of inferior quality and subject to failure, requiring maintenance interventions and additional cycles of sourcing and procurement.
Rather than focusing on initial cost, buyers of gaskets and seals should focus on the total cost of ownership. Total Cost of Ownership (TCO, or total ownership cost TOC), is a concept that is increasingly used in the business world. TCO is a set of decision rules where the full costs of a buying decision are evaluated, rather than just the initial purchase price of the item in question. As an approach, TCO is quite similar to other economic approaches for business decision making, such as Total Life Cycle Costs.
Properly used, TCO evaluates the full costs of buying a product or the full costs of two competing alternatives. Thus, when applied to buying gaskets and seals, TCO can be used to evaluate the full costs of a particular product under consideration, or the full costs of two alternative products under consideration.
Unlike considering only the initial cost or price of a gasket or seal, TCO reflects the full opportunity cost of a buying decision. Thus, when procuring a gasket or seal, buyers should consider the costs of ownership over time, including such things as the costs of training personnel to use the new seal, the costs of maintenance interventions required over the product life cycle, any relevant expenses such as carrying inventory, etc.
Canada Rubber Group Inc. appreciates the significance of considering total ownership costs in your gasket and seal procurement. We know the importance of providing timely delivery and support services to our customers. We have an extensive product range with leading brand names in sealing technology and materials on-hand. Our leading-edge production technologies for gaskets and seals enable us to deliver your products in ultra-short lead times, 24 hours a day, 7 days per week. With over 25 years of involvement in the production and application support of gaskets and compression packings, we can help our customers to significantly reduce their TCO.
Our sales specialists are always available to provide guidance and advice on the most appropriate material, gasket or seal, or compression packing. Our expertise represents the accumulated knowledge gathered over many years from servicing a broad range of industries. We want to make sure you have the right gasket or packing that assures the performance of your equipment and processes.
To find out how we can help lower your gasket and seal TCO, contact our sales department at crg@canadarubbergroup.com.