By Adam Covitt, Vice President, Federal Equipment Company
Considering all Variables in Outsourcing
One of the most critical decisions for a pharmaceutical company is the choice to outsource operations, which leads to determining the optimal supplier with which to partner. For those lacking in-house capability, there is often little choice but to work with an external contract manufacturing organization (CMO) that can meet production needs effectively and efficiently. However, when choosing an organization, a company must prioritize risk minimization and choose a dependable supplier with a strong track record. The CMO will not only be relied on for production — which means that the company’s market reputation is in the hands of its supplier. In addition, any delay in manufacturing could result in failure to deliver drugs on time. Although there are many different operations that can be outsourced, the core of all production is the equipment. A facility is only as strong as the equipment that it runs, and production is only as effective as the equipment operators.
Relying on a Third Party for a Strategic Acquisition
Working with a used equipment dealer offers customers more options for finding the equipment needed to furnish their facility at a reduced price. Secondary equipment dealers understand the factors that go into equipment selection, as they witness them firsthand every day. Working with a third-party organization can bring relief to manufacturers that are operating under tight timelines and budgets, with a major equipment purchase looming, as they can source equipment and recommend the best machinery at the lowest price and within the shortest time frame possible. A strategic partnership with such an organization can provider a turnkey solution from the start by sourcing a range of equipment that can meet specific production line requirements.
Cutting Timelines and Reducing Costs with Used Equipment
Used equipment is a tremendous money-saver. This has become increasingly important as budgets are further constrained by a host of factors, including rapid innovation or capacity demands. These innovations in the industry have the potential to render equipment obsolete in certain facilities but still crucial in others. Redeployment programs set up between manufacturers and equipment suppliers allow companies to redeploy assets internally or sell to a broad customer base. As the industry develops, the availability of second-hand equipment has increased. This immediate accessibility of equipment cuts down on the timeline for everything from procurement to installation.
The timeline related to equipment implementation is another bottleneck. Delivery does not mark the end of the process when it comes to equipment acquisition. With used equipment, a machine has already proven it can meet its target, whereas new equipment has to be tested. Additionally, when buying used equipment, purchase lead times are reduced, as it has already been determined that the used machines procured are in correct working order. Machines can be available from a used equipment dealer within an average of about a week following payment; this is a significant benefit compared with the traditional waiting period of six weeks to 24 months, during which time nearly anything can happen — unbelievably, this delay has become an industry norm.
Companies that stock their facilities with used equipment save an average of 55–70% on cost — this additional capital is crucial for other areas and can be spent in a number of ways that can increase returns. A viable option would be to purchase additional equipment using this freed-up budget, revamping operations and keeping all expenditures relatively low while generating more profits.
One of the most common ways that equipment breaks is through improper handling during shipping. Whether purchasing new or used equipment, it is critical to find a reliable partner who can ensure that equipment is packaged correctly and makes it to your facility in the condition it left the warehouse.
About Federal Equipment Company
At Federal Equipment Company, we understand the dilemma that organizations face when selecting an equipment supplier. After over 60 years supplying not just the pharmaceutical, but also the chemical, plastics, packaging, utility and food processing industries with equipment, we have added services and partnerships to enhance our offerings and capabilities. Our commitment to customer service is so entrenched in who we are as a brand, that partnering with Federal Equipment Company is the equivalent of opting for a comprehensive turnkey solution when it comes to equipment sourcing, servicing and training. Our goal is to maximize production so that all of our partners run their machinery at optimal capacity, correctly and efficiently. There is nothing greater than having total peace of mind and trust in your equipment partner. Working with Federal Equipment Company can bring confidence to any organization, as there is nothing more empowering than knowing your partner has you covered when it comes to all areas of your machinery.
Adam Covitt, Vice President, Federal Equipment Company
Adam has over 19 years of experience in the pharmaceutical and chemical process and packaging industry, with a focus on investment recovery and the purchase and sale of high-end equipment to major pharmaceutical sites and contract manufacturers with a global footprint. Mr. Covitt earned a bachelor’s degree from Ohio University in Athens, Ohio.