Frain logo

PRESS

Changing the Equipment Delivery Model

Frain Industries is renting out machines from other OEMs to help bridge the gap of long lead times.

When it comes to sourcing controllers, components, and other parts for packaging and processing equipment, the problems for OEMs just keep piling up.

“The supply chain as we know it is stretched beyond belief,” says Edward Young, CEO of PFM USA. “It has been a challenge for the last year, and it’s not showing signs of improvement. Anything we thought was an obstacle two months ago may now be under control, but there are always other obstacles that surface.”

As a result, PFM, like just about every OEM out there is quoting equipment with longer than normal delivery times. These long lead times are not good news for CPGs needing to deliver new products to consumers quickly. And awful news for OEMs that could lose a sale.

PFM makes a range of horizontal flow wrappers, vertical form/fill/seal (f/f/s) machines, multihead weighers, and state-of-the art standup pouch equipment. Regardless of the type of machine, if PFM can’t meet the customer timeframe Young knows he’ll lose the deal. “If they’re not buying a machine from us, they’ll go to another OEM and buy from them.”

In that situation, Young recommends the end user get a machine from Frain Industries, a packaging line integration company that offers a wide range of packaging and processing equipment from cappers and conveyors to fillers, wrappers, weighers, and more. According to Frain, the company specializes in integrated solutions, not just single machines, so Frain will get any equipment a customer needs for the project. 

While it may sound strange to point a potential customer to what seems to be a competitor, in this case, it’s a brilliant move. That’s because Frain Industries buys PFM equipment and rents it out to CPGs.

“Frain has historically been viewed as a competitor, but now they’re a partner,” Young says, noting a recent change in the Frain business model that turns the OEMs from foes to friends.

 

A sign inside Frain Industries’ new showroom sums up the company’s unique model: “Zero missed opportunities – OEMs build it, Frain buys it, end users rent it, repeat.”

The 200,000-sq-ft showroom at Frain’s Carol Stream, Ill., facility physically embodies that model, housing over 2,000 packaging and processing equipment solutions from over 70 OEM partners. The company purchases this equipment new from OEMs, stocking its rental fleet for CPGs who need a quick turnaround installation.

“If an OEM’s customer is looking to have a piece of equipment built, it could take 10 to 12 months to build it new. We can get them up and running and producing in a matter of two weeks for packaging equipment. If it’s processing equipment, a lot of times we can turn that in 48 hours,” explains Mary Woodrick, brand ambassador at Frain.

Equipment all in one place

Frain’s rental model is on display on the showroom wall. Source: OEM Magazine

Equipment all in one place

The showroom lines all this equipment up so it’s ready as needed, creating benefits for CPG customers, OEM partners, and Frain’s own operations. Central to that is the new level of organization it affords.

“We’ve never been able to organize equipment by OEM; we were scanning location markers and placing machinery wherever it would fit,” says Woodrick. “That was a big purpose of this showroom, to be able to showcase everything that we have from ADCO, and then everything that we have from Pattyn, and so on.”

Since all of Frain’s inventory of OEM equipment is organized in one place, it also acts as a de facto selling floor for the company’s OEM partners.

“Many of the OEMs don’t have all this machinery on their floor,” explains Woodrick. “Sometimes a customer wants to touch, feel, and see the equipment, so the OEM can bring their customer in here and show them. Even if it has nothing to do with the rental, they’re welcome to bring customers in here.”

Equipment all in one place

The company can install processing equipment like tanks, kettles, mixers, or blenders at CPG facilities in as little as 48 hours. Source: OEM Magazine

Bridging the lead-time gap

One of the biggest benefits of the showroom and rental model it supports is the flexibility it enables for CPGs, even if a direct order for a new piece of OEM equipment is already in the works.

“Because of the long lead times that OEMs have, what are you going to do while you’re waiting for a piece of equipment? We fill that gap,” says Steve Kuhlman, director of sales and marketing at Frain.

That same availability can also help CPGs to cut back on risk when scaling for a new product.

“New products fail quite often. Rent [the equipment], test it out, get your permanent piece if it’s going to work,” says Kuhlman.

Frain even has customers who return each year for the same equipment on a seasonal basis. One manufacturer rents a bagger and scale system to handle extra holiday demand for their product and returns the equipment once the season winds down.

It also works as a backstop for the unexpected.

“We’ve had people whose metal detector went out, and they couldn’t ship without their product going through it. Production that was supposed to be shipped out that day was sitting, and they had no room for it, so they could rent a metal detector,” Woodrick says. “We’ll have people jumping through hoops here, because we know how important it is for customers to be able to get their product to market.”

Bridging the lead-time gap

A sign in Frain’s showroom outlines the range of scenarios that drive CPGs to the rental model. Source: OEM Magazine

A plug-and-play process

Getting started with Frain doesn’t require a trip to Carol Stream. A phone call or Zoom meeting is often enough to get moving.

CPGs can start by sending in a product sample, and Frain’s engineers, many with 30 or more years of experience, can determine the right equipment for the customer’s specific application. For customers who do visit, Frain even includes full lines of equipment on the perimeter of the showroom.

“It gives the customer an idea of the footprint that you need for something like this,” says Woodrick. “You can always look at it on a drawing, but actually seeing it gives a much better visual.”

After picking out the right equipment for the job, Frain offers to set it all up for a factory acceptance test, ensuring the mechanical, pneumatic, and electrical components are up to the latest standards and ready for production.

“It’s plug and play,” says Kuhlman. “We’re setting their equipment up so when it leaves our dock, it’s pretty much ready when they get it on-site at their plant. It’s all set up since we’ve dialed it in with the right tooling, so they’re ready to go with less downtime.”

Once the equipment is on-site, Frain can even offer startup assistance and training to ensure a smooth start to the new production process.

For Kuhlman, the biggest challenge remains conveying the scale of what Frain offers to customers who haven’t yet made the trip.

“Once they understand the extent of the equipment that we can offer and how we can assemble it for their specific use – you can say the words, but this showroom helps to come in and see that it’s real.”

Example production line
An example production line in the showroom gives a sense of equipment footprint, from case erecting to robotic palletizing. Source: OEM Magazine
VIEW FULL ARTICLE IN OEM MAGAZINE

More Frain in the Press