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"Commodity" Defined

What defines a commodity?  One Webster definition is "a product of agriculture or mining".  In "industry" a commodity is typically thought of as an item that; 1) can be procurred from numerous sources, 2) is identical, no matter what the source of supply is, and 3) is procurred primarily on price.  A commodity is not thought of as an item where there exists strong differences between brands and sources of supply.

Applied To Level Controls?

Often buyers of level controls consider them to be a commodity, just as defined above.  It seems that industrial consumers look at level controls as though they are commodity items solely because there is several sources of supply and because level controls are all alike and perform the exact same function.  In addition, level controls are relatively low cost.  But is this true?

It is true that level controls are relatively inexpensive components.  It is also good judgement to consider the pricing of the component as a criteria for decision making (after all we are in business to make a profit).  However, applying commodity buying principles and judging level controls solely by price can be a risky venture.  This is because there exist several technologies and numerous brands in each technology segment.  There are typically multiple technologies and multiple brands available for each technology to solve each application need.  Each technology has pros and cons.  Each brand has different features and benefits, different quality, reliability and performance levels.  Each supplier can have very different service and business philosophies and procedures.  As the crusade knight told Indiana Jones in "Indiana Jones and the Last Crusade", "choose wisely".  Level controls are not simple commodity items.

Can A Criticle Component Be A Commodity?

What happens when your level control fails to function properly?  The answer depends on the specific application and how the unit fails.  In addition, the solution provided by the level control can be either a point level or continuous level monitor. 

Many level control units are used in very critical applications where substantial costs can be incurred when the unit fails.  High level sensors keep bins and silos from overfilling and keep material from backing up into conveyor lines.  The maintenance cost if a unit fails and material spills and backs up can be sizeable in comparison to the cost of the level control itself.  In addition, lost production can occur and be even more costly.

Low level applications also can be critical.  They are typically used to signal that a vessel is empty or approaching empty so that additional material can be ordered/resupplied or so that process problems can be identified or operations terminated.  If the level sensor used for this purpose fails to operate correctly, production downtime can occur and production efficiencies can be diminished.

In the case of continuous level monitors these devices are used in applications where knowledge of the amount of material in a vessel at any given time is important to ensure supply of production material and to improve the efficiency of resupply.  When these devices fail to operate the result is similar to that of failing point level sensors.

Conclusion

Yes, a critical component can be a commodity.  There's no question about that in my mind.  However, level control sensors are not true commodities.  There are significant differences between the level sensor technologies that exist and differences in brand and suppliers.  I urge Engineers, other influencers and specifiers/purchasing decision makers to evaluate the technology choice, brand, and the source of supply very closely. 

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Any questions?  Post a comment, call or email me.


Joe Lewis
Vice President
Marketing & Sales
Monitor Technologies LLC
Phone: 800-766-6486 or +1-630-365-9403
Email: jlewis@monitortech.com

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