Good aftermarket culture is the most important credential
Gauraw Tiwari, AGM - Mechanical, Dilip Buildcon Ltd.

We believe that owning the equipment and maintaining them well is one of the most important factors for timely completion of projects, says Gauraw Tiwari, AGM - Mechanical, Dilip Buildcon Ltd.

What is the equipment selection process in your company?
We get details and guidance about equipment application from our Director and we explore the options. Equipment category and application wise we have certain brand preferences, but we compare and evaluate with other alternatives also.

What are the safety features being considered, especially while selecting heavy machinery?
Always top priority is given to safety aspects. We will not consider equipment having even small safety lapses.

What are the categories, types and brands of construction equipment for which you are responsible?
We use all types of construction equipment.

Could you elaborate on the equipment applications for which you need to select equipment?
Our Director has excellent knowledge and experience in selection of the equipment based on application. He always elaborates mechanical team about application and provides guidance for selection of equipment.

What are the key considerations for equipment selection? Are you country specific? If yes, then what are the reasons thereof?
Strong after-sales support and overall costing of equipment for its standard life span are main parameters. We believe in homogeneous fleet and standards for each category that have been set based on our long experience and continuous re-evaluation process. We give preference to quality and features and make no compromise irrespective of country of origin. For imported equipment, we experienced that German makes are excellent in all respects.

Do you procure new or used or both categories of equipment? Could you elaborate on the same?
Yes, we do. We purchase used equipment some times, but only after thorough auditing.

Do you have some brand preferences for specific equipment? What are your reasons for the same?
Yes. As already stated, good aftermarket culture is the most important credential. Equipment?s total cost along with life span and fuel economy with respect to output is another important factor.

Do you conduct a rent versus buy analysis?
Yes we do. But we believe that owning the equipment and maintaining well is one of the most important factors for timely completion of projects.

What are your preferred brands of equipment in various categories? Why do you prefer these brands?
For each category we have preferences. Caterpillar for excavator, grader, wheel loader and backhoe loader; Vogele for pavers; Ammann Apollo for bitumen batch mix plants; Hamm for compactors; and Schwing Stetter for concreting equipment are few of them.

What is the importance of Total Life Cycle (TOC) and Total Cost of Ownership (TCO) costs? How do you establish the same and what parameters you consider?
We exercise on both parameters. Calculations are based on our past records and standard parameters by different OEMs considering present price.

Do you give weightage to extra acquisition cost towards new technology, performance enhancing features, telematics, energy conservation and regeneration features and other such items?
We give weightage. Our Director is very innovative. Even we are pioneers of few such technologies but we never ignore the practicality and ground reality. No percentage wise limits are there for that.

Do you have tie-ups with the OEMs on operator?s training for new equipment you buy?
Training is an essential requirement against every order.

Could you elaborate on the decision making process for equipment procurement in your company?
In Dilip Buildcon, all equipment and spares procurement is being done only by the mechanical team. So all the process areas stated above.

Acquisition cost of equipment is a prime factor considered by procurement. What are the parameters for which you are willing a higher price? If so, to what extent?
We always consider equipment life cycle cost. Breakdown data evaluation and after market backup support are another prime factors.

What are the procurement norms for establishing the Total Cost of Ownership of equipment?
Initial equipment cost, fuel cost, maintenance cost as per previous records and standard parameter by OEMs are the major factors.

What are the guaranties you seek from an equipment supplier?
Apart from standard manufacturer?s warranty, we also seek training, after market technical support and assurance for productivity for the equipment.

Do you seek guarantee for after sales maintenance, retrofit repairs and consumables?
Yes, we do.

What about operational consumables, like ground engaging tools, drill rods, drill bits and such other items?
We prefer to buy those from OEMs, but we also consider buying from other genuine sources with 100 per cent quality assurance.

Do you seek comprehensive after sales maintenance contracts from the suppliers? Are these on sites or are they centrally governed?
In certain segments we have but 100 per cent are centrally governed.

Do your purchase decisions get impacted by the available finance arrangements by various financiers who only finance specific brands?
We don?t let it happen.

Do you procure equipment on operating lease? If yes, what are the governing factors?
Sometimes we do. It is purely on need basis.

What are the non-negotiable terms of your purchase agreement?
After market back up for parts and services and safety features come under non-negotiable terms.

What are the main challenges of procurement? How do you overcome the same?
Timely delivery of the equipment to meet project?s requirement is the biggest challenge. By advance planning, negotiating the delivery terms in advance and tracking the same at every step help us to overcome this challenge.

Any other information you wish to share to enable us understand your company philosophy in a better way.
Dilip Buildon is an equipment loving company. We believe in owning the equipment, maintaining them well, enhance their maximum life. Even moving a step ahead, considering equipment aging, we have formed a huge central workshop and warehouse for refurbishment and performing all major overhauls for even strengthening equipment life cycle.Strong after-sales support and overall costing of equipment for its standard life span are main parameters.
Transparency at each level is our key strength for best negotiations in all spheres.