Tag: Risk Management

Mitigating Risk with Borrowed Equipment

Written on by frain-sales

As consumers grow even more fickle with hyper-explosion in CPG product variety – many times Frain customers are left trying to do more with less.

This often means getting more produced from fewer resources including people and funding.

But it also means that companies must avoid putting all their eggs in one basket.

You can’t bank on one new package, flavor variation, or great idea. You need to launch several simultaneously and keep funding winners while having the ability to pull back on bad investments as quickly as possible.

Frain enables companies with flexible financing terms and speed to market services which make us uniquely positioned to help companies expand production or get a quick read on new ideas.

We have thousands of machines ready to be configured to any application and deployed quickly under rental or lease terms.

You don’t have to sell the “one” idea that you think has the best chance to win anymore. Let the market decide.

You can now focus on executing more flavors, packaging variation, etc. than your competition with rental and rapid deployed machinery.

With rental terms, you can return the equipment used to launch less profitable projects and place new funding towards new tests.

Recycling machinery barely used along with new machinery and components is something that we’ve excelled in for over 35 years.

Aside from being eco-friendly, the speed and flexibility in which we provide “borrowed” machinery are the ultimate insurance we provide our customer to help them minimize risk and maximize margins and revenue.

Speed to Market Revenue

Written on by frain-sales

In a previous job for a fortune 500 corporation, a business partner of mine said to me, “You are an ocean liner in a bay and we’re your speed boat.”

Conceptually, his statement punctuated our symbiotic relationship whereby his company seized opportunities on behalf of my company for which they were better suited given their smaller, more nimble make up.

Like the best and largest cruise ship’s inability to port at smaller islands – many CPG companies are also unable to expedite smaller jobs, such as introducing new products or packaging redesigns.  Getting to market just a few weeks slower can add up to millions of incremental revenue left on the table to competition.

Partnerships can help CPG companies seize the day.  Agencies, consultants, and other companies within the supply chain can help circumnavigate obstacles that would otherwise impede progress, complimentary ideas, people, services, and efficiency which translate into greater revenue and market share.

At Frain, we’ve found success in partnering with customers to help them deliver new or redesigned products to market faster.  Our rapidly deployed machinery enables our customers to maximize short-term revenue through lead times that are faster than traditional equipment OEMs, while limiting risk and investment through borrowed machinery.

Whether the project fails or succeeds to gain traction within the marketplace, our customers succeed (and fail) faster and have the flexibility to return equipment or keep it as needed.

For example, when equipment lead time of 3 months is shortened to 2 weeks with Frain – our customers gain 10 weeks of revenue not gained in traditional machinery integrations or deployments.  For our customers this can yield anywhere from $5 MM to $100 MM more in incremental wholesale brand revenue depending on margins.

While the path to improving speed to market may be complex and multi-faceted for many companies, Frain provides a streamlined service within a key point of the supply chain – packaging machinery.

The chart below represents total speed to market revenue (approximately $180 MM) captured by eight Frain customers across twelve projects or deployments.

 

frain-speed-to-market-brand-revenue