Capital Equipment News December 2018

PARTS

Metso spends millions of Euros annually on R&D, and ultimately end users benefit from the results through unparalleled parts quality.

the investment, but also with a potential breakdown which occurs as a result of an aftermarket generic part. “A breakdown is a highly costly situation where the fleet owner can lose hundreds of thousands of rands in lost production. In extreme cases, equipment fitted with generic/pirate parts can be damaged to such an extent that the piece of equipment will require major repair work after that, obviously translating into even bigger costs,” adds Scherf. He advises that fleet owners should be aware that generic/pirate parts may lead to catastrophic machine failures, which results in not being able to deliver on contracts and furthermore, losing money, time and possible reputational damage from untimely and constant failures. Major benefits While they represent a major cost upfront, there are an array of benefits associated with buying OEM parts in the long run. Primarily, with OEM parts you get the perfect match for your machine. “OEM parts will help to improve or maintain efficiency because they were specifically manufactured for the particular machine. Longevity is another key advantage of OEM product – and not just for the part itself, but the piece of equipment as well,” says Schultz. Scherf says keeping equipment to OEM specification is always a benefit for various reasons, including retaining the value of the equipment; retaining all standard and additional factory warranties; all equipment is serial number related, meaning ease of getting spares that will fit accurately and deliver expected performance; as well as peace of mind that one has purchased

correct parts which won’t cause any additional damage to the equipment. “There are several other benefits associated with OEM parts. A longer lifetime of wear parts directly reduces the cost per ton. To maximise production, fleet owners need to ensure that their crushers’ uptime is maximised. Meanwhile, support and information is easier to access through OEM goods, whereas generic/pirate parts may be once-off, and impossible to source reliable information on,” says Scherf. He adds that consistency of quality from OEM parts is almost guaranteed, whereas generic/pirate parts are usually sourced from a variety of locations, based on cheaper pricing. Sieja says reliability and uptime are the major benefits of OEM parts. “We only sell parts when we are sure that they meet all the safety and performance requirements. CNH Industrial, of which Iveco is a part of, invested $957-million in R&D last year. Due to the extensive R&D, we are confident about the quality of our parts and can assure our customers that they are the best option to ensure the highest returns in terms of performance and durability of their Iveco fleet.” Justified costs? The general reasoning by fleet owners who opt for aftermarket parts is that OEM parts are generally expensive – in some instances they are said to be almost 60% more than their aftermarket counterparts when it comes to price. Is the premium price for OEM parts justified? According to Scherf, OEM parts pricing has always been perceived to be more expensive than generic/pirate parts and in most cases the pricing is

Iveco Genuine Parts are designed specifically for Iveco buses and trucks.

the OEM’s expertise and warranty. Iveco Genuine parts last longer, perform better and allow you to reduce your fuel consumption and hydraulic liquids. The downtime due to maintenance of the vehicle is lowered as well. Taking all these factors into account, OEM parts cost much less than aftermarket parts in the long run,” adds Sieja. According to Scherf, operating costs are critical and a focal point for any operation. “We are obviously sensitive to the costs incurred by clients when taking on OEM vs. generic/pirate aftermarket parts, however, the long-term and daily operating returns are usually in favour of selecting OEM goods,” says Scherf. He adds that when customers invest millions of rands into capital equipment and use generic aftermarket parts, they take on a high level of risk, not only in

CAPITAL EQUIPMENT NEWS DECEMBER 2018 14