In an informative article, Scott Sterton, Senior Regional Insurance Marketing Manager for Caterpillar Financial, explains why it's important to apply the total costs of machine ownership to business strategy. By detailing all the costs tied to the equipment, machine owners can focus on where their strategy can be modified to get more out of their machines, improve efficiency and reduce costs.
Sterton says the first step toward reducing total lifecycle costs is to pinpoint the factors affecting your ownership expenditures. These include machine application, fuel consumption, location and weather, scheduled and unscheduled repairs, equipment price, operator expense, and other factors.
Because of the number of variables that go into the total costs of ownership, Sterton recommends that owners work one-on-one with a dealer representative to estimate the costs for their particular situation. Installing VisionLink is another way to optimize performance over the lifecycle of the machine.
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