We recently engaged with a client who was disillusioned to say the least.
They had put out a tender to the stretch wrapping industry, and challenged suppliers to help them to reduce the amount they were spending on wrapping their pallets. The company was spending approximately £100,000 a year on stretch film alone, and were sure there was something that could be done about this situation.
Previous total cost of ownership over 4 years at least £400,000
Our competitor, who sells high quality stretch wrapping machines, promised to reduce their spend to £25,000 a year if they invested in two market leading machines costing £10,000 each machine, which would allow them to use less wrap. –
Forecast Total cost of ownership over 4 years at least £120,000
2 years later, they had worked out that unfortunately they had been fed false promises. They were in fact spending £50,000 a year on wrap, as well as having to consider the cost of the machines upfront, not to mention their ongoing depreciation, servicing and maintenance. –
Actual Total cost of ownership over 4 years of at least £220,000
Although they were saving a considerable amount compared to their £400,000 original spend, they were not receiving the saving they had been forecast.
Our Samson Nano specialists conducted a full audit of their operation and their pallet wrapping requirements. Our quote was £33,000 per year all in. Based on our unique fixed price per wrapped pallet, this solution is risk free to the client. Their fixed price per wrapped pallet includes the provision, servicing and maintenance of the machine; as well as all the film and inbuilt reporting software for ongoing management by both the client and the experts at Samuel Grant.
Samson Nano Total cost of ownership over 4 years fixed at £132,000
The difference between our quote and theirs, was that ours was a fixed price per pallet wrapped. Without our specialist data transmission machinery the competition can only estimate and forecast. Forecasts look to the optimum possible outcome. There are so many variables when the solution is actually installed into a client, that the outcome is uncontrollable and subsequently unable to ever deliver on the estimate. Optimum forecasts rely on perfect management, and ultimately leave the responsibility for the outcome with the customer.
We were able to propose this as a solution to the customer, and having conducted an in-depth audit of their pallet wrapping requirements, were able to offer it to them with no capital expenditure required, at a fixed price per wrapped pallet.
So our advice is:-
If you have an old pallet wrapper there are good savings to be had by replacing it but if you want to get control of costs there is only Samson Nano from Samuel Grant Ltd
And the great thing for us, is we’re the only ones who do this. www.samsonnano.co.uk