Suppliers must step up to new challenges

8 June 2012



In an increasingly challenging climate for all manufacturers, factors such as long term cost control and productivity have never been more important, says Martin Bailey, Markem-Imaje UK operations manager


It’s time for suppliers to show how they can move away from the marketing rhetoric and step up to the real issues of today: delivering transparent and tangible solutions that provide real help for manufacturers striving to meet increasingly tough targets, cut unnecessary costs and secure a sustainable future.

For many businesses, one of the key challenges is the reduced level of capital, set against an increasing demand for high return on investment. Increasing productivity levels, therefore, assumes even greater importance because of the difficulty of purchasing new equipment. Despite that, a productivity level of 75% is still the average across all packaging sectors.

The drive to utilise all available capacity is, therefore, a key issue for the industry, which simply cannot afford to lose a quarter of its production capability. However, it is not an issue that can be resolved by individual businesses in isolation. Suppliers must do their bit to help to secure long term growth.

In a marketplace saturated with promises to maximise efficiency and optimise performance, as well as increasing pressure to adopt new packaging materials and pack styles, it can be hard to know whose solutions offer exactly what is required.

Trying to predict what equipment will be needed in the future can be equally difficult and accurate forecasting of costs is a real challenge. But what if your supplier could provide a performance guarantee, or remove financial risk and offer known costs that could be built into a fixed budget in advance? Or provide a framework that would allow your company to upgrade technology without capital financing?

Quite simply it is no longer sufficient to simply supply equipment, however good the quality, and leave businesses to make the best of things without additional servicing and support.

Cost control measures undertaken as part of any business’ forward planning are critical to protect productivity and profitability. The reduced levels of capital available to most businesses today, along with the need to forecast and budget more accurately for all operations, means suppliers must provide different and often tailored procurement options, as well as set operating expenses over a fixed term that can easily be budgeted for in advance.

Service must be more than a mere promise. It means delivering the day-to-day support needed, including immediate access to experts who will work with customers to resolve any issues quickly. It also means developing cost effective plans that provide reduced and transparent cost of ownership in the long term, facilitating accurate budgeting and forecasting.

Service today must recognise the changing nature of the workforce driven by the changes in technology. Fewer and faster machines are now in use in every packaging sector – where once greater numbers of operatives with highly specialised skills were the norm, reduced plant labour with a less specialised skill set is now typical. Immediately accessible 24-hour technical support should be no more than a phone call away.

Driven by increasing levels of environmental awareness and public demand, corporate social and environmental responsibility is high on the agenda for all businesses today.

Suppliers need to ensure the necessary resources are allocated to help control the impact of their products and services on their customers’ sustainability targets.

The sustainability argument also makes very good business sense. Reducing waste not only means cutting the amount sent to landfill – an increasingly expensive option – but also cuts expenditure by limiting the use of consumables.

Sustainability is something that must become an integral part of a machinery supplier’s offer to its customer. A commitment to reducing environmental impact throughout the supply chain is expected of all manufacturers. Equipment built using recyclable materials that use less energy and whose components last longer, must become the norm.

These are significant challenges, but it is possible to deliver more cost effective, sustainable and effective manufacturing processes throughout the packaging industry.

Views expressed on this page are those of the author and may not be shared by this publication.


Martin Bailey Martin Bailey

Martin Bailey Martin Bailey


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