Canadian Packaging Machinery Market Research Report - PMMI

Brand/Supplier Reputation 3
Experience in Our Industry/Industry Sector 3
Speed of Delivery/Delivery Wait Period 4
6. Attitudes Toward Suppliers:
Associated Brands prefers to purchase equipment manufactured in North America.
US equipment, in particular the Bartelt line, has proven to be extremely reliable and
versatile for The Company’s line of business. Spare parts are readily available and,
in many cases, available from more than one source. European equipment is
generally expensive and spare parts are not easily obtained and Associated wants to
avoid high inventory levels and space requirements for spare parts.
a. Perception of Machinery by Country:
Country Overall Opinion Quality Up-to-date
Technology
Service
Britain Good Good Average Poor
Canada Good Average Average Good
Germany Excellent Excellent Excellent Average
Italy Good Good Average Poor
United States Excellent Good Good Excellent
b. Perception of Pricing by Country:
Country Price
Britain Very Expensive
Canada Average Prices
Germany Very Expensive
Italy Very Expensive
United States Average Prices
7. Purchasing Policies and Financial Arrangements:
Associated complies with OEM quoted conditions of sale, usually 40% with purchase
order, 40% on delivery and 20% in 30 days. The Company does not use vendor
financing.
Associated has in the past always purchased individual equipment and engineered
the line in-house.
8. Purchasing Issues:
Because of the demands of the private label industry, flexibility is the key when
buying equipment. The Company frequently customizes machinery to meet its own
demands. Large packaging machinery manufacturers charge too large a fee for
adapting their equipment from the normal configuration.
SMG/Columbia Consulting Group Page 40