We guarantee you won’t find a lower cost end-of-line packaging system. By reducing materials and energy usage, our packaging System typically lowers end of line packaging costs by between 15% and 20%, while our equipment completely eliminates the need for CapEx – instead, customers can lease our equipment and spread the costs for the use of the system on a ‘pay per wrap’ basis.
The only thing that’s certain, in the fast moving world of FMCG, is that change is inevitable! One of the downsides for manufacturers is that this raises the stakes when buying capital equipment and often leads to a long, drawn out decision making process that leaves the potential for cost savings “on the table” instead of on the bottom line.
At TrakRap, we are confident that our system will deliver a lower cost, more environmentally friendly solution and we want our customers to reep these benefits as soon as possible. We have done this by providing our system on a cost per case basis without any requirement for Capex. Our thinking is simple, if each pack costs less to pack and there is no capital cost, why can’t you just get on with it?
Typically, contracts last for 5 years, but this is a long time in retailing, so we have introduced a no questions “walk away” clause after 2.5 years. We have done this because we are confident that the system will enable you to unlock very significant savings in your business not only in secondary packaging material costs, but also in areas such as pallet handling and storage, line speeds and changeover times. In short, we expect you will want the system for a very long time!
In case you’re wondering how we can do this, it’s not magic! Our machine is powered by the very latest Siemens control systems and we, in turn, are powered by Siemens Financial Services (SFS) as our funding partner. All this is factored in to your cost per case.
So, if you’re looking for a secondary packaging system that has a lower cost per pack, the opportunity for wider efficiency savings, is quick and easy to install and requires no capital expenditure, we have the solution for you.
Q: What is Trakrap’s Lowest Price Promise
A: TrakRap guarantee to beat any price for end of line packaging on the market, measured on a pence per pack basis
(a pack is also called a case).
Q: How can Trakrap guarantee that?
A: We can do this because we typically use 90% less energy, 40% less cardboard and 70% less film than existing
Q: So how do we measure cost per pack
A: Generally, companies only think about the price of boxes or shrink-wrap when calculating the cost of end of line packaging and they forget about all the other costs. The cost of packing includes much more than the cardboard or plastic used – electricity, labour, maintenance, machine costs, corrugate boxes, shrink film and even the cost of cooling the factory are all part of the total cost of packing products. All this needs to be included in the pack cost.
Q: I don’t know what my pack cost is, how can I find out?
A: Simple, we’ll do it with you. We will work with you to measure all aspects of your existing packaging and provide a like for like comparison to a TrakRap pack to identify your overall savings.
Q: Typically, how much can I save?
A: Typically we deliver a net overall saving of between 15% and 20% versus the existing heat tunnel or corrugate packing process. The level of savings that we deliver will vary and depends on the individual product being packed, the type of packaging currently being used, the speed and power consumption of existing equipment and TrakRap’s ability to remove unnecessary packaging and labour from the process
Q: What happens if my volume goes up?
A: The TrakRap machine can speed up to cope with it (max 50 packs per minute) – if the volume goes up further than this TrakRap will install an additional machine to cope with the volume but the pack price will remain the same
Q: What happens if my volume declines
A: A volume decline of no more than 20% in any year does not affect the pack price, if volume declines more than this on a long term basis then the contract pricing would be reviewed to ensure that neither party is inappropriately disadvantaged. In extreme circumstances the ‘pay per pack’ charging structure would move to a ‘machine rental and film purchase’ agreement
Q: What is the length of the contract agreement
A: Our contracts run for 5 years, but you can hand the machine back (with 3 months notice) at any time in the first 2.5 years. Because we are new technology, we want you to feel confident that our machine will work for you and that you can revert to your old system if we don’t deliver the service that we promised
Q: Can you give me an example?
A: Yes, here’s a typical summary…
|Existing Packing Process||TrakRap Packing Process|
|Annual Volume (Packs / Cases)||3,000,000||3,000,000|
|Film / TrakRap Film and Machine||£215,000||£230,000|
|Equipment Maintenance||£3,000||Included in film price|
|Equipment Depreciation||£11,000||Included in film price|
|Interest on Machine Capex||£1,800||Included in film price|
|Total Cost / Cost Per Pack||£540,800 / 18p||£444,400 / 14.8p|
|TrakRap Saving £||£96,400 / 3.2p|
|TrakRap Saving %||18%|
In this example, based on an annual of volume 3 million packs and taking all of the related costs into account, TrakRap reduce the total cost of packing by £96,400 (or 18%). The TrakRap cost of £230,000 per annum (£19,166 per month) includes the cost of the machine, the film and all the repairs, spares, call outs and upgrades and no Capex is required to buy the machine