Optimising TCO in Supply Chains


Utilising efficient drive technology, NORD Drivesystems champions a holistic approach to minimise the Total Cost of Ownership (TCO) in supply chains. Through energy efficiency, version reduction, and condition monitoring, NORD provides a forward-thinking solution to cut costs and improve operational efficiency.

Given the prominence of TCO (Total Cost of Ownership) in the economic lifespan of drive systems, supply chains must go beyond just focusing on the initial investment cost. An impressive 85 percent of TCO stems from downstream processes, including energy, administration, service, maintenance, and more. Reducing these costs demands a keen consideration of the economic aspects tied to the entirety of the lifecycle of the drive systems. NORD Drivesystems offers a unique perspective on this challenge.

Two essential factors in curbing TCO are energy consumption and the number of drive versions used. However, these variables represent conflicting objectives. Optimising a system for energy efficiency leads to diversified drive versions, which, while economically favorable, necessitates management and servicing throughout the lifecycle. On the other hand, reducing the number of drive versions simplifies administration, service, and warehousing, but at the cost of increased energy expenses. Striking a balance between these competing factors is a crucial part of efficient drive design.

Furthermore, NORD Drivesystems recognises the relevance of continuous monitoring and predictive maintenance in the Industry 4.0 landscape. Regular recording of drive and status data can preemptively identify changes and diminish unexpected downtimes. The outcomes include higher system availability, reduced service and material costs, less downtime, and prolonged service life – all contributing to a lower TCO.

NORD’s approach to TCO reduction is holistic, using a suite of optimisation strategies to identify and enhance efficiency potential. This includes the use of modular systems, economical technologies, individual TCO calculations, and intelligent service and maintenance concepts. 

A cornerstone of NORD’s approach are their drive solutions – designed to minimise lifecycle costs. Key examples include the high-efficiency portfolio, featuring patented DuoDrive geared motor, IE5+ synchronous motor, and decentralised frequency inverter NORDAC ON / ON+, and the LogiDrive solution space.

NORD Drivesystems’ approach to lowering TCO encapsulates a deeper understanding of supply chain complexities and the need for comprehensive solutions. By integrating energy efficiency, version reduction, condition monitoring, and a robust portfolio of drive solutions, NORD takes an innovative stance in ensuring operational efficiency and cost-effectiveness in supply chains, setting an example for others in the industry to follow.

For more information on NORD Drive systems, click here

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