Product price versus process costs
According to a study by the Fraunhofer Institute, the “Total Costs of Procurement“ play a significant deciding role in whether a purchase makes economic sense. Process and material costs are particularly important factors in the purchase of coolants.
Meinhard Kiehl, Director of Marketing and Product Management at Rhenus Lub, explains: “It’s not the price per coolant unit, but the unit cost of the individual workpiece that makes the difference.” This is determined by various factors, such as procurement and storage costs, actual consumption, the cost of coolant maintenance and the effects on the filter systems. Administration and training costs must also be taken into account. “To look only at purchase price is short-sighted”, Meinhard Kiehl remarks. “In practice, it often transpires that reasonable-looking product prices are simply too expensive in terms of unit cost.”
Without a doubt: It’s the bottom line that counts!