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How operational leasing could transform FMCG businesses

  • By Louise Adcock
  • January 20, 2016
  • Industry
  • General
  • Beverage
  • Food

Pass the spanner...

What’s the most annoying thing about owning a car? Yep, the running costs. Parts wear out and a once trusty engine becomes less efficient. As the years pass, you need to part with more and more money to pay for repairs as well as fuel costs. Meanwhile the latest cars in the showroom deliver lower running costs, more efficient engines and better performance.

It’s no different with printing technology.

Just as with cars, the cost of using outdated printers and coders increases over time. Repairs are needed more frequently; downtime increases and replacement parts become more expensive. It’s well known that print technology has evolved rapidly over the last two years, let alone the last twenty. Yet many FMCG manufacturers are trying to meet demanding sales and growth targets using printing equipment that is at best, inefficient or, worse, approaching obsolescence.

Why?

Like so many things, it comes down to money

Since the 2008 financial crash, straightforward capital investments have no longer been the norm. Investment is tentative. Instead shareholders are looking to maximise profits while minimising expense. Add in CSR requirements and it’s clear that FMCG manufacturers must be leaner, meaner and greener than ever before.

Forced to try and create efficiencies with outdated production line equipment, many FMCG businesses are stuck in a false economy. Yet without capital investment to pay for new technology, hundreds of businesses are left walking a tightrope between profit and loss.

It doesn’t have to be that way.

Out with the old, in with the new...

Few FMCG manufacturers are aware that they can lease new assets. It gives you access to brand new printing technologies, without the upfront costs. That allows you to drive manufacturing improvements and cost savings, in exchange for a predictable monthly fee.

Watch our short video, or continue reading below.

4 barriers to leasing

Manufacturers continue to run older printer systems on their production lines for a number of reasons.

  1. Lack of capital budget

As we discussed, the cost of replacing old coders is a challenge when capital investment budgets are low.

  1. Resistance to change

In any business, there tends to be a perception that change is disruptive. That can be amplified when it comes to FMCG manufacturers, where uptime is critical.

  1. Depreciation

Some managers may be reluctant to replace equipment as long as coders are on the books and have not been fully depreciated.

 

Insert image from leasing guide!

  1. Perception that things are fine as they are

Despite the need for regular maintenance, there exists a perception in some businesses that as long as existing coders get the job done and are can be fixed, they don’t need replacing: a better-the-devil-you-know kind of mindset.

6 benefits of leasing

Of course, the benefits of new technology almost always outweigh the case for persevering with outdated equipment.

  1. Improved quality

The pursuit of quality is an ever-present demand for FMCG manufacturers. The latest ink jet printers open up new printing possibilities and are compatible with a range of substrates, IP ratings and more.

  1. Improved speed

Your speed of throughput on the production line is inextricably tied to profits. The faster, the better. For example our latest XS print head designed for speed

  1. Lower maintenance costs

Ten aging printer units have an estimated annual labour cost of £6,000. Ten of the latest ink jet printers have annual labour costs as low as £30. In fact you can service them yourself - really - in just ten minutes.

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  1. Less downtime

The enhanced reliability of modern coding and printing systems means less downtime, less frustration and less impact on your profits.

  1. Predictable monthly costs - cheaper than you think

With leasing you pay a recurring monthly fee for your new technology, instead of the entire cost upfront. It’s likely that the money you save by upgrading from outdated equipment will be enough to cover the recurrent fee.

  1. You are ready for tomorrow’s market

FMCG manufacturers are under pressure to find new ways to cut costs while increasing operational efficiencies and boosting profits. This is often at odds with the market demand for reliable, eco-friendly, added-value packaging.

Leasing new printer and coding technology allows you to square the circle, improving your efficiency and coding capabilities, without the burden of upfront costs. In short: you are ready for tomorrow’s market, today.

Relax: you won’t find an easier way to lease

Here at Domino we have an easy leasing scheme called Relax. Not only does it give you the pick of market-leading coding and printing technology. You also get installation, ongoing training and multi-year warranties bundled into fixed repayments that you can pay either monthly or quarterly.

Take a look at our full leasing guide and get ready to outmanoeuvre the competition.

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