Client Background
A medium-sized construction company based in Jakarta, Indonesia, specializes in municipal infrastructure projects such as road construction and drainage system upgrades. In early 2024, the company won a bid for three key road expansion projects in West Java, which required additional construction machinery to meet the tight project schedule. However, due to the local economic environment and budget constraints, purchasing brand-new excavators would have put significant financial pressure on the company. After researching multiple machinery suppliers, the company turned to our team for cost-effective used construction machinery solutions.
Client Challenges
- Budget Limitations: The client’s equipment procurement budget was only 60% of the cost of new excavators of the same model, requiring high cost performance.
- Quality Concerns: As used machinery, the client was worried about potential performance issues, frequent breakdowns, and short service life, which could delay the project progress.
- Time Sensitivity: The project had a strict start date, and the machinery needed to be delivered, installed, and commissioned within 45 days to avoid project delays and penalty clauses.
- Local Compliance Requirements: Indonesian customs have strict inspection standards for imported machinery, including emission standards and safety certifications, which required professional documentation support.
Our Solutions
After in-depth communication with the client to clarify their specific needs (mainly used for earthwork excavation and material loading, requiring excavators with a bucket capacity of 1.2-1.5 cubic meters), our team provided a targeted solution:
- Customized Machinery Selection: We recommended 3 units of used Komatsu PC200-8 excavators. These machines were manufactured in 2020, with a cumulative operating time of only 1,800-2,200 hours (well below the industry average of 5,000 hours for used excavators). They had been maintained by authorized service providers, ensuring basic performance stability. The quotation was 55% of the cost of new machines, fully meeting the client’s budget requirements.
- Comprehensive Quality Assurance: We arranged a professional technical team to conduct a 28-item full inspection on the excavators, including engine performance, hydraulic system tightness, chassis wear, and electrical system functionality. We also provided the client with detailed inspection reports, video recordings of test runs, and maintenance records from previous owners. Additionally, we offered a 6-month warranty service covering major components such as the engine and hydraulic pump, eliminating the client’s quality concerns.
- Efficient Logistics and Customs Clearance: We cooperated with a professional international logistics company with rich experience in Southeast Asian routes to formulate a streamlined transportation plan. The excavators were loaded at our Shanghai warehouse, transported by sea to Tanjung Priok Port in Jakarta, and the entire shipping process took only 18 days. Meanwhile, our documentation team prepared complete customs clearance materials, including original purchase invoices, export declarations, emission test reports, and Indonesian PKP safety certification applications, ensuring smooth customs clearance without delays.
- On-Site Installation and Training: After the machinery arrived at the client’s project site, we dispatched 2 senior technicians to Indonesia for on-site assembly, debugging, and operational training for the client’s operators. The training covered daily maintenance, common fault diagnosis, and safe operation specifications, ensuring the client could use the machinery proficiently.
Cooperation Results
The 3 used excavators were officially put into use 42 days after the signing of the contract, 3 days ahead of the client’s schedule. As of October 2024, the machines have been operating continuously for 8 months, with an average daily working time of 10 hours, and no major faults have occurred. The client’s project progress has been advanced by 10% compared to the original plan, and the cost saved by purchasing used machinery has been invested in other project links, effectively improving the overall project profitability.
Client Testimonial
“We were initially hesitant about buying used excavators, but the professional service and strict quality control of this supplier completely changed our mind. The machines perform as well as new ones, and the 6-month warranty gives us great peace of mind. The cost savings have helped us better control project costs, and we will definitely cooperate with them again for future machinery procurement.” — Mr. Andi, Procurement Manager