Product on shelves is the primary connection between companies and customers, but companies are usually on stand-by after ordering new equipment.
A major company, whose origin started with fresh dairy products, had a strategy focused around new equipment:
- Purchase new equipment directly from the OEM
- Roll out a new cup product at a high capacity
In fact, it was a great strategy, except lead time was not taken into consideration. The lead time provided by the OEM was a well-known industry average of 8-12 months. The company wanted to get a new product out to the market, but was unable to do so without equipment. They contacted Frain during their waiting period, and with Frain Industries, the strategy modified to:
- Rent a complete line from Frain while waiting for the newly purchased equipment from the OEM
- Integrate, test and install the complete line in only 6 weeks
- Roll out a new cup product at a lower capacity using the rental equipment
- Return equipment upon arrival of the OEM equipment
- Continue running product at a high capacity using the OEM equipment
Using rental equipment in an industry where equipment is traditionally purchased new or used was an unorthodox move.
However, it was an excellent temporary solution until their equipment arrived and operated at their intended capacity.
Frain industries delivered the complete line (2 lane cup filler-sealer, topper, vibratory feeder, bucket elevator and scale) in 6 weeks, and it was plug-n-play upon arrival. The leading yogurt company proved that Frain Industries can get clients up and running quickly giving them a competitive advantage of getting product out even during waiting periods.
The company achieved a 75% faster product to market generating millions in total incremental revenue.
- After initial and equipment rental cost of an 18-month rental
- Continued to use Frain’s rental equipment after arrival of OEM equipment
Frain Industries targeted the client’s application, and had them up and running (set the equipment to size, tested, delivered, and installed the complete line) quicker than anyone else in the industry.