No Investment in Expensive Equipment

Consideration to customer opportunity cost plays a key role when any company is setting aside necessary resources to purchase capital equipment. A company's core competencies are the results of specific unique set of skills and techniques that deliver value to the customer. Understanding core competency and opportunity cost have helped define the value and economies associated with this question. Should a company invest in expensive equipment that does not fall within the realm of their core competency?  This underlying question has been debated and has many contrasting opinions. But the bottom line is opportunity cost should not only be thought of in monetary or material terms, but also in terms of anything which is of value, such as intangibles.

This philosophy has been the basis in helping to develop a loaner machine program that allows a company to embrace a technology that most likely does not fall within their competency, but offers tremendous value and savings if implemented. All without expending their own cash resources that could be invested in other continuous improvement projects geared toward their own competencies without sacrificing lost opportunities.

MACHINE LOAN PROGRAM

The process is really quite simple, first an analysis is prepared to understand the potential company's packaging procedures and supply chain, and to understand potential savings and improvements. Subsequent to agreement by both parties a future date is set and 3 to 4 days are blocked out for installation. During the machine waiting period more assessment is done in relation to carton design, programming, prep work, required fanfold sizes, layout etc.. The machine is delivered with corrugated, setup and tested the first day. Training begins with team leads and operator.  Machine is running making boxes. Cycles are put in place for required fanfold skus and your on your way to reducing and eliminating the corrugated footprint and numerous box skus in your plant. The machine remains the property of the seller (machine company) with your only liability being the corrugated fanfold material invoice.  It doesn't get any simpler than that to have your own corrugated focused factory.

If your company is shipping 50 boxes per day or more contact us to do a quick assessment and see if a box making machine makes sense for your operation.