Securing CAPEX Budget Approval: How Your Filling Machinery Partner Can Help

November 28, 2024

Securing approval for capital expenditure (CAPEX) can be an arduous process, with many stages and stakeholders involved – especially when it involves high impact investments like filling and capping automation machinery. Navigating the approval process itself can be a complex endeavour, requiring a detailed business case, technical justification, and alignment with your broader organizational goals. Fortunately, the right machinery partner can be more than just an equipment provider – they can be a strategic ally in your budget approval journey.

In this article, we’ll explore how partnering with an experienced filling machinery supplier can strengthen your case for securing CAPEX budget approval. From enabling precise ROI calculations to providing tailored solutions that align with your production goals, the right partner can simplify the approval process and help you unlock the funding needed to drive operational efficiency and growth…

 

Understanding the CAPEX Process

The CAPEX budget approval process enables businesses to evaluate, approve, and allocate funds for significant investments. Typically consisting of around 5 stages, this process is designed to mitigate risks, and ensure alignment with the company’s strategic goals and financial plans.

• Define the need or opportunity, and assess initial feasibility, EG: space implications.
  
• Conduct initial cost estimates and benefit projections. Identify and engage key stakeholders, EG: Operations, Finance, etc.
• Create a detailed Business Case, including:

– Detailed cost breakdown
–  ROI potential: NPV (Net Present Value), IRR (Internal Rate of Return), and payback period
–  Project operational efficiency gains or capacity improvements
–  Align with short and long-term business objectives
–  Include alternatives and justify the selected approach

• Review and refine, including with technical experts for validation of assumptions, and financial analysts for robustness of financial modelling. Refine proposal based on feedback.
  
• Submit for approval, to the relevant authorities, EG: Departmental leadership, Executive leadership team or Board of Directors.

 

Which stage are YOU at? Let us know how we can best support you to secure your CAPEX budget approval >>>

 

At Adelphi Masterfil, we are focussed on supporting your business to grow. We always aim to make your life easier, by making the purchasing process for new filling and capping machinery detailed and specific. We understand the challenges you can face when securing CAPEX approval; from lengthy approval processes to regulatory and compliance challenges.

By answering all anticipated questions up-front, we enable your CAPEX budget proposal to stand the very best chance of approval! Here’s how Adelphi Masterfil has put conscious measures in place to support you to secure budget approval, to meet and exceed your production KPIs, and ultimately to grow your business…

 

Our Support for You

Building a Solid Business Case, with Comprehensive Cost-Benefit Analysis

• Leveraging Expert Insights: Adelphi Masterfil can provide data-driven insights on equipment efficiency, reliability, and long-term savings.
• Quantifying Value: We can provide detailed cost analysis for our machinery, breaking down upfront expenses, maintenance costs, and potential savings.
• Tailoring our Documentation: To align with your company’s strategic goals, and your decision-makers’ priorities. For example, if there is information you can’t see on your quote and you think it would help with your internal approval process, please just ask!

Superior Build Quality, Long Service-Life, Greater ROI

ROI potential is typically the Number One factor affecting you securing your CAPEX budget approval. Factors which should be taken into consideration include:

• Initial Costs, including the purchase price, custom features/ integrations, and installation costs.
• Operational Efficiency, including speed and throughput, accuracy, and downtime. Higher production rates reduce per-unit costs and increase revenue potential; Reduced product waste and fewer rejects lead to cost savings; Frequent maintenance or breakdowns decrease machine availability, negatively affecting ROI.
• Labour Costs: Automated machines can reduce ongoing labour requirements, improving ROI despite higher upfront costs.
• Machine Flexibility: Machines that can handle a wide range of products and packaging sizes/types may provide better long-term ROI.
• Product Loss Prevention, as spillage or overfilling can reduce profitability.
• Maintenance and Operating Costs, including energy consumption, reduced maintenance frequency of new machines, and ease of spare parts availability.

Many of Adelphi Masterfil’s machines are still fully operational over 30 years after purchase. Imagine the £ per use!

Reputation & Reliability

Adelphi Masterfil’s have a proven track record of delivering high-quality machinery to support our customers’ journeys of growth. We aim to increase decision-makers’ confidence by offering…

• Visits to our customers’ sites, so you can see the equipment working in a real production environment.
  “It fills you with confidence to see the machine working as it should,” says Peter Till, Operations Manager at N&C Building Supplies, “and we could see the accuracy for ourselves – it left no room for doubt.”
• Case Studies, to demonstrate tangible business impact.
  “Enables Exol to produce an additional 2,800+ 5 litre boxes – or more than 500 1 litre boxes – every working day.” ~ Exol Lubricants

  “Previously we were filling our isocyanates by hand, at a rate of around 60 units per hour. We now fill between 200-300 per hour – trebling our output!” ~ KDR Resins

• Persuasive, professional materials to strengthen your proposal to stakeholders. Our dedicated Sales and Marketing departments each offer their expertise to support you.

Conclusion: Empowering Decision-Makers

By choosing Adelphi Masterfil as a supplier of filling and capping automation machinery, you gain a valuable partner who understands and actively supports you in securing your CAPEX budget approval journey. Through a combination of data-driven insights, tailored support, and proven solutions, we simplify the budget approval process for machinery, making it more approachable. This collaborative approach is the cornerstone of achieving investment success, ensuring your unique needs are met and fostering organisational growth.

Getting Ahead in 2025

Get ahead of your 2025 production KPIs with our stock S5000-S semi-automatic filling machines: Currently available with lead times down from 10 weeks to as little as 1 week!

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