Challenges & Pitfalls of Purchasing Test Equipment
Test equipment are specialised purchase where high precision & accuracy of results are the prime objectives, there are numerous challenges and pit falls of purchasing test equipment. Initially let’s look at the challenges.
Now a day all the markets are flooded with hundreds and thousands of products, lots of branding is going on – TWT Amplifier Rental as the test equipment is a specialised product that is why making a purchase decision & making a right purchasing is cumbersome task to execute. Low line manufacturer can not only waste the test results which were not accurate and precise but it also waste money and time. Finally, the product will also not be a quality product as there is an approach GIGO – it stands for garbage in garbage out. If the input testing is not up to standard and not providing accurate results then the out will also be affected by the poor results of testing.
Capital cost – the test equipment’s are very costly and much of the capital is stuck in to that – businesses fall short of capital required to run their businesses. It’s quite challenging to buy the quality test equipment where as it is also a challenge to select good quality equipment as many of the versions in the market and can easily be made wrong decision that will lead to loss of dollar but also poor output affect will come in to play.
Maintenance cost – as these test equipment’s are very delicate in parts if it’s not been used appropriately it will incur cost which will directly hit the profits reduction.
Deprecation cost – as the technology is changing very rapidly the new versions are being innovated so the technology will obsolete quickly and new standards of test will be in place – that will result to buy the new versions or new test equipment – that is enhanced capital cost.
Down time – just in case your purchased equipment starts malfunctioning, the time till it gets repaired the down time to the process or to production will results in higher costs. That is main challenge to tackle while having your own purchased equipment against the renting of the same equipment. In case it starts malfunctioning immediately the contractor or supplier of the test equipment will replace and the operations can and will continue uninterrupted.
Cash flow – if the more cash is spent on buying the test equipment there will be shortage of the cash to manage the finance operations. It requires to have other source of credit which will come with a price.
Specialization challenge – as the test equipment companies are specialist in the relevant equipment they have more knowledge of its functions as compare to the direct client. In case of any technical problem they are fit and right skilled team to identify the problem and rectify the problem in no time.
Based upon these pitfalls and challenges purchasing of the test equipment is not a viable decision instead the company should prefer to rent the test equipment and concentrate upon their core business in terms of using the resources wisely.