Leasing can provide a quicker and easier path to reusable B2B packaging for your company, says AAM
Durable reusable packaging systems generally can be relied upon to deliver a lower cost per use than expendable alternatives while providing additional benefits such as improved product protection, better interaction with automated systems and more. While usage costs are often cheaper or comparable to single-use systems, however, sticker shock can be an anchor to conversion. Durable reusable packaging is typically more expensive to purchase than expendable packaging. Capital outlay, therefore, can be a crucial barrier to a switch to reusable packaging programs. Leasing, however, is one strategy that companies can use to fast-track their conversion to reusables. We recently reached out to Nick Clements of Anglo Asset Management (AAM).
Q: What does AAM do?
NC: AAM is a leasing company. We make it easier, and quicker for users to acquire the equipment they need, when they need it and then pay for the equipment in installments, using the savings and revenues that the equipment generates.
Q: Why reusable packaging, and how can this help potential users of this equipment vs purchase, rental or other options?
NC: Generally, RTP offers total cost savings to a customer. It can have a higher initial cost than the alternatives but has a longer life and is easier to clean and maintain and because it is reusable is better for the environment. Our lease packages allow the (usually) higher initial cost to be spread over the life of the RTP. We reduce the initial cost of acquiring it, which helps more customers adopt RTP and unlock the savings they may not have realized using their existing packaging, containers, totes, etc.
Q. What types of equipment does your program support?
NC: Intermediate Bulk Containers (IBC), various other large containers (FLC), plastic pallets, totes, and drums. Pretty much any plastic polyethylene or polyurethane product that ships or stores food products, dry powders, consumer goods (like shampoo), components, spares, liquids or chemicals.
Q: What markets do you serve in terms of geography, industry, etc.?
NC: The biggest markets for AAM are the US and Europe, but we also work in Latin America, the Middle East, and Asia. Food processing, logistics, chemicals, and shipping are our traditional customer sectors but we are now seeing lots of automotive manufacturers adopt leased RTP to move spares and components, so we expect that sector to develop strength for us.
Q: Do you cover only specific reusable packaging manufacturers, or are you neutral?
NC: We are neutral, but we do run finance programs for some manufacturers. Confidentiality is important to us and our clients so each manufacturer has a separate team working with it, to avoid any conflict of interest.
Q: Is there anything else readers should know?
NC: In addition to the equipment, we can also finance any repair and maintenance costs, along with washing and tracking equipment, factory tooling, shipping, and set-up costs.
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