Used packaging equipment often proves to be a cost-saving, time-saving alternative to new
When sourcing packaging equipment, used machines shouldn’t be overlooked. Used machines typically cost 40%-60% less than new and generally can be delivered more quickly, sometimes shipping the same day or day after the order is placed.
With its lower cost and shorter lead time, used equipment is a particularly good choice when budgets are tight, quick turnaround is needed and demand is uncertain or seasonal. It also scores points for sustainability since the equipment is reused instead of scrapped.
It should be noted that today’s pre-owned machines often are “used” in name only. Due to changes in product demand or company focus, the used equipment currently for sale often has never run in production. Sometimes, it’s never even been installed.
A number of companies specialize in selling used packaging equipment and possess inventories of hundreds, if not, thousands of machines. In the case of AEK Packaging, they also handle processing equipment.
When sourcing used equipment, it’s important to research the history, background, service and financing options of the dealer as well as the machine(s) under consideration.
The dealer should be reputable and established and capable of offering a variety of machines so capabilities can be matched to application without any bias toward a particular brand name or configuration. It’s also helpful if the equipment is stored in a warehouse where it can be inspected and viewed running under power before it ships to its new home.
Some questions that you should ask potential suppliers are: “How long have you been at your current location? Do you own your warehouse? What is your return policy? What warranty do you offer?
“You want someone that can provide support if a problem arises,” explains KC Christensen, founder of Kendell Equipment, now part of AEK Packaging Equipment, a subsidiary of Aaron Companies (Bensenville, IL). “We have a global presence,” he notes, adding, “We can send a technician out or take the machine back.”
On the equipment side, pharmaceutical packagers sourcing used equipment should match the machine to their application and pay attention to many of the same elements they would consider when buying a new machine, such as run speed, efficiency, footprint, electrical package, etc. Equipment should be evaluated on the basis of the desired outcome.
If the pharmaceutical packaging equipment under consideration actually ran in production, it’s important to know what products and packaging materials came in contact with it. This is critical for primary packaging machines, less critical for secondary packaging machines.
Last, but not least, it is recommended to double check the machine’s control system for compatibility with the other equipment on the line. With many lines fully integrated today, some machines are configured to be controlled by other machines and therefore possess minimal onboard control capability.
Prepping Equipment
AEK Packaging dedicates a substantial amount of floor space to refurbishing and employ engineers and technicians who prepare the equipment for delivery and recondition it as necessary.
Equipment preparation varies, but typically involves a thorough cleaning, confirmation that mechanical, electrical and computer systems are in good working order and replacement of wear parts, which often are sourced from the original equipment manufacturer. If necessary, controls are upgraded and change parts crafted. In fact, “We have developed a global network of suppliers for controls and change parts,” reports Christensen.
Value-Added Services
Machines typically are supplied with complete documentation including manuals and drawings. Deals also may include guarantees, warranties and right of return agreements.
AEK can provide acceptance testing, setup and training. In some cases, line integration and aftermarket service can be part of the package. However, it should be noted that post-sale service typically requires a separate service agreement.
Deciding how to pay for a machine can be as complex as determining exactly which machine to buy. Options include cash payment, leasing or renting. Each choice presents a different degree of flexibility and advantages and disadvantages.
Cash payment results in full ownership, represents a capital expenditure and requires a capital budget. In most cases, accounting personnel must track depreciation for several years after the purchase.
Leasing, either directly through the dealer or through a third-party company, spreads payments out over a specific term. At the end of the term, the equipment is returned or purchased for a price that reflects the lease payments.
Since renting does not require a commitment of more than a month or two, it provides the most flexibility. In addition, rental fees are expensed so equipment can be put in place without touching the capital budget. Thus, renting is particularly well-suited for addressing seasonal spikes in demand, product introductions and contract packaging situations.
“Renting makes it possible to put a product on the market very fast and very economically,” explains Christensen, noting it also “provides the opportunity to test a machine before you commit.” If the new product is not successful, the equipment is simply returned. If the product succeeds, the rental can be converted to a purchase.
Managing Surplus Assets
AEK is always looking for late-model, well-cared-for systems to buy. “We’re probably offered 50 machines per day, but only pursue five to 10,” says Christensen. In addition to purchasing surplus assets directly, AEK also offers asset redeployment services.
Tags:used packaging equipment, aek packaging, purchasing used packaging equipment
Categories:AEK Packaging Equipment | Company Info
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