Canadian Packaging Machinery Market Research Report - PMMI

have well-established service networks. Service and function take priority over capital
cost in the purchasing decision.
Schneiders avoids countries that have not invested in supporting after-sale issues.
For example, it has generally been found that Japanese suppliers usually have nice
equipment at the trade shows, however they provide poor service in Northern U.S. or
Canada.
a. Perception of Machinery by Country:
Country Overall Quality Up-to-date
Technology
Service
Canada Average Average Average Good
France Average Average Average Average
Germany Excellent Excellent Excellent Good
Italy Good Good Excellent Average
Japan Average Average Good Very Poor
United States Good Good Excellent Good
b. Perception of Pricing by Country:
Country Price
Canada Good Prices
France Average
Germany Somewhat Expensive
Italy Average
Japan Somewhat Expensive
United States Somewhat Expensive
7. Purchasing Policies and Financial Arrangements:
Schneiders always prefers to buy equipment directly from the OEM. Normally it
acquires individual pieces of equipment and creates its own production line to suit its
ROI requirements. Schneiders has found turnkey to be reasonably expensive and it
generally takes longer than in-house solutions.
The decision process to purchase a machine to address a specific need consists of a
cross-functional team decision. The decision to purchase a particular make or model
is made by senior engineering staff and production management.
The Company pays cash, normally with 30 – 30 – 30 – 10% terms.
SMG/Columbia Consulting Group Page 113