Total cost of ownership analysis for tractors yields surprising results at Krinkels NV
Krinkels NV is a landscape contractor, so tractors are an important part of its mobile equipment. Krinkels analysed the total cost of ownership (TCO) of its tractors, which showed that the greatest expense during the lifespan of a tractor is fuel (approx. 70%). Tractor fuel consumption is expressed in litres per hour, but this is highly variable so difficult to compare. Krinkels contacted an American lab that determined the real consumption for various brands. With these results in hand, the company was able to recalculate the costs. This led to a new purchasing strategy; where the cheapest provider used to be chosen, fuel consumption is now factored in too. This saves money, and reduces fuel consumption and CO2 emissions.
A number of tractors have already been purchased according to the new strategy. Some colleagues found it difficult to bid the trusted brand farewell, but everyone is now on board.