Canadian Packaging Machinery Market Research Report - PMMI

4. Future Packaging Machinery Plans (next 3 years):
The company requirements change year by year based on circumstances and
market need. Heinz Canada spends between $C3 and $15 million annually on
packaging machinery.
5. Key Factors in Purchase Decisions:
Factor Ranking
(1 = Most
Important)
Potential Operating Cost Savings/Added Value 1
Equipment Characteristics & Features (e.g.
2
flexibility, speed, capacity, unique features, etc.)
Operating Reliability/Accuracy 3
Price 4
Quality/Reliability/Durability 5
Previous Experience with the Supplier/Brand 6
Speed of Delivery/Delivery Wait Period 7
6. Attitudes Toward Suppliers:
a. Perception of Machinery by Country:
Heinz Canada has no preference regarding country of origin of packaging machinery.
However, it does try to stay with North American suppliers for ease of shipment.
Certain countries and suppliers have expertise depending on equipment type and
product to be packaged so this is the important determinant. By way of example,
Heinz identified one supplier that was very good in producing tomato paste
packaging machinery but was not strong in areas used for other products. The
preference depends upon the type of products specialized in.
Aside from these specific areas of expertise, the main packaging machinery supplier
countries are all reasonably equivalent. Most foreign companies dealt with maintain
North American depots.
b. Perception of Pricing by Country:
In regard to perception of packaging machinery pricing by country, Heinz Canada
finds that the exchange rates are the biggest factor in machinery costs. It finds that
what it gets for each dollar spent on machinery is equivalent after the impact of the
exchange rate. However, this has become somewhat disrupted and a bit more
difficult with the recent appreciation of the Canadian dollar against U.S. currency.
7. Purchasing Policies and Financial Arrangements:
The Engineering Group (which has four engineers) makes the packaging machinery
purchase choices.
SMG/Columbia Consulting Group Page 69