At Bossard, every solution we create is designed to reduce costs. One crucial area that’s ripe for cost reduction is the total cost of ownership (TCO) in fastening. To better understand the TCO model, it’s helpful to understand how those costs come into play.
The Rule of 15-85
The rule of 15-85 is relatively easy to understand and even easier to visualize with the help of a simple infographic. In most cases, the fastener itself makes up just 15 percent of the total cost of ownership. These are the costs that are most visible in the fastening ecosystem.
However, the remaining 85 percent of the costs are hidden beneath the surface, hence the “iceberg” model. These costs include the development, design, and procurement of fastening solutions, along with their logistics and handling, ordering, storage, quality assurance, and assembly.
These aspects make up most fastener costs. However, experience has shown that these costs, mainly in areas of logistics and engineering, can be reduced by 50 percent or more.
A Solution at Every Step
At Bossard, we recognize the importance of reducing costs and increasing productivity at every phase. Our solutions tackle each step in the process, delivering enhanced value while reducing risk and increasing your ability to meet and surpass the competition. Those steps start at our warehouses, where we offer a selection of over 1,000,000 screws, nuts, rivets, washers, and other fasteners for a multitude of applications.
• Development and design – Bossard Expert Design provides support during the early stages of product design.
• Procurement – Streamline your supplier base with our expert procurement services.
• Logistics and handling – Smart Factory Logistics makes your supply chain performance leaner and smarter.
• Ordering and storage – With ARIMS, our interactive supply chain platform, you’re in complete control of material flow, backed by intelligent analytics.
• Quality assurance – Our engineering facilities boast the latest in modern measuring and testing, ensuring a quality product and reduced risks.
• Pre-assembly and assembly – Bossard Assembly Technology Expert services can help boost competitiveness by finding the right fastening solutions for your needs.
Want to learn more about total cost of ownership in fastening and how our solutions can help you reduce costs and save time? Email us at ProvenProductivity@bossard.com.All About Total Cost of Ownership in Fastening (With Infographic!) by Bossard