Transfer risk from customer to supplier

Transfer risk from customer to supplier

David Vaughan and Ben Buys, sales director and operations director respectively for Babcock’s Equipment division, discuss how Babcock’s after-sales service contracts transfer risks away from its customers

Babcock International in Africa provides comprehensive infrastructure and reliable technical support to some of the world’s leading heavy-duty machinery brands.

“Our long-term replacement strategies, fleet maintenance and technologically advanced services are proving to be increasingly attractive options to our customers, particularly in the mining industry where machines operate long hours and any downtime translates into lost revenue,” says Vaughan.

He explains that, as part of Babcock’s aftermarket support capabilities, every customer has access to the following services:

Power by the Hour

This service provides the owner with a fixed maintenance cost over an extended period of time based on a fixed sum per hour of machine usage. Machine owners are assured of an accurate cost projection and largely avoid the costs associated with breakdowns. The contract includes the option of purchasing an extended warranty to give customers further peace of mind.

These tailor-made contracts transfer the risk of component failure away from the customer and relieve the owner of the need to stock components. There is no need for the customer to carry inventory as Babcock technicians are equipped with all the necessary components and tools to service the machinery on site, thus improving up-time and productivity.

CareTrack

This is the Volvo Construction Equipment telematics system, which transfers data from machinery to Babcock’s dedicated internal service department. This remote monitoring system can be used to set service reminders in advance; allowing sufficient time for the necessary resources to be deployed. It also acts as an early-warning system for potential component breakdown.

“With this system, our technicians can identify when components need to be replaced or repaired. They can then address any maintenance issues before they become costly problems,” says Buys.

Re-Build

This offer is specifically geared towards the mining sector where machinery rapidly clocks up high production hours. Once a machine’s warranty has lapsed, customers are offered the option of refurbishment as opposed to trading in, or buying new, where possible. This cost-saving alternative provides further hours of productivity from the refurbished machine, while Babcock parts and services extend the warranty for an additional 12 months.

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