The Broad categorization of Solenoid Valve is as follows:
Due to outdated 3 Way solenoid valve technology, many 3 Way Solenoid Valve users end up paying the additional price of up to 79%, losing their price competitiveness and profitability.
Our Application Engineering research suggests that if a compatible or Right Solenoid valve is not used for a given application it may give out sub-optimum performance, making customer product technically less competitive. Due to this, we find quite a few of our customers losing as large as 5 million USD worth of feasible business.
Most customers desist customization as their current suppliers ask them for huge development cost or huge volume commitments or very high per piece costs forcing them to settle with sub optimum design developed with a standard 3 Way solenoid valve. This just does not kills the opportunity earning as high as 3,000,000 USD profits which is almost 31% of their current profits
Many customers have to wait 4 weeks to 12 weeks to get the standard catalogue product while customized 3 Way solenoid valve development takes as long as 1.5– 2 years losing a huge opportunity for business and saving possibilities. These values we have found to be going as high as 11,000,000 USD which directly hits the bottom line.
Many times, post-dispatch lead time of solenoid valve from its plant location till it reaches and commissions at your customer location goes beyond 6 months because of which many time solenoid warranties are not fully protecting you from any mal-function during your warranty period. We find customer may lose around 4.5% of their total purchase of the solenoid valve which comes around 45,000 USD per year considering 1M USD purchase.
SIL2 and SIL3 certifications based on IEC 61508 are becoming basic requirement for safety critical applications and in multi part assembly involving solenoid valves it becomes a challenge to meet needed Dangerous λ values. It is seen even 10% lower Dangerous λ values creates big impact in overall calculations. Due to very few SIL3 certified solenoid valve suppliers in the world, customer struggles with no better option and have found to be losing as high as 17M USD revenue opportunities.
Many times customers are stuck with single source of solenoid valve especially due to adopting a particular mounting and piping layout suiting to existing solenoid valve supplier. Due to huge cost of change dual sourcing or alternate sourcing of the solenoid valves becomes a challenge. Due to this Monopolistic environment, the customers end up paying premium for existing solenoid valve designs resulting them to lose possible savings up to 37% – 57% per valve
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Rotex is a leading manufacturer of Fluid Control Systems, Positioners and Electro-Hydraulic Actuator. Having started in 1967, the company has excelled over the years in developing highly engineered products to meet the fast paced technological demands of the process industry.
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