The Business Case for Power Continuity

The impact of loss of electrical power to an organisation's operations can be significant, with direct financial losses possibly in the millions of dollars. Then there is also of course the negative impact to their brand, their customer experience, etc. to factor into the losses incurred.

So does your organisation need a standby generator solution? From the commercial standpoint, the answer to this can be calculated simply by estimating the total cost to the organisation of extended outages (lasting more than say 10 minutes) and comparing this to the TCO (total cost of ownership) of a standby generator solution.

When estimating the total cost to the organisation of an extended power outage, a number of factors need to be considered. Typically these would include the following:

  • Lost sales transactions (un-recoverable lost revenue)
  • Lost employee contribution to the organisation, both during the outage and during the subsequent recovery time • Impact on delivery of critical services to your customers
  • Lost ability to complete buying transactions
  • Negative impact to the brand due to unavailability of services etc.
  • Negative customer experience
  • Negative impact to time-critical operations

And depending on the nature of your business, other factors could be...

  • Impact to life support systems, medical procedures, etc.
  • Power-essential processes interrupted with significant consequential losses (refrigeration, agriculture, etc.) • Financial trading losses
  • Complex multi-party schedules disrupted (transport, shipping, etc.)
  • Security issues (loss of lighting, surveillance, access control, etc.)
  • Inability for your consultants to charge time (accounting, legal services, etc.)

TCO of a standby generator solution could include many of the following costs...

  • Capital cost of generator equipment
  • Rental or lease cost of generator equipment
  • Installation costs (placement, mechanical and electrical works, commissioning, etc.)
  • Maintenance, servicing, fuel and other consumables
  • Real estate costs for generator location (carpark required, etc.)
  • Insurance of generator equipment

Please feel free to call and discuss any of the above if you are interested in reducing the impact of power outages on the operation of any aspect of your organisation. Our turnkey generator solutions range from simple portable units to fully automated installations, and our flexible commercial arrangements can either be by way of purchase, lease or monthly rental.

John Deere
Leroy Somer
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