To own, or not to own? Determining how best to allocate capital is an important business decision that affects your growth, competitive differentiation and your long term strategy. Taking advantage of leasing or renting assets can be an excellent way to reap the benefits of high-quality products while avoiding the maintenance and liability that comes with ownership – and, of course, saving you the full expense of buying.
What is Pooling?
The term “pooled assets” refers to any resources brought together to maximize advantages and/or minimize risk to the users. Leasing assets may offer more benefits than owning — which helps explain why the equipment rental market is slated to grow 15 percent to $59.4 billion between now and 2021.
For a grocery retailer and its’ suppliers, there are many elements of their business that could be leased or rented that might make more sense than purchasing. Items such as, buildings, forklifts, pallets, and transportation services are just a few that come to mind.
Pooling Reusable Containers
Another very relevant example of that principle in action is reusable packaging. RPCs (reusable plastic containers) can be leased from a third party service provider that “pools” the assets, such as Tosca. Tosca, owns millions of reusable containers and rents them to companies for the purpose of transporting their perishable products through the supply chain – from farm or plant to retail store or point of consumption. Such systems save grocers the expense and hassle of having to develop, manufacture, clean, maintain and manage their own RPC pool — or of going the other route and using less-efficient, less environmentally friendly, more labor-intensive and more damage prone corrugated containers for their shipments.
When leasing RPCs from Tosca, you benefit from 50-plus years of industry knowledge shipping product in reusable containers. At the same time, as a pooler, Tosca is entirely responsible for maintaining the cleanliness and functionality of the containers. You will not have to worry about equipment depreciation, replacement or upgrades. After every use, Tosca inspects, washes and sanitizes the containers in accordance to our food safety policies in order to maintain one of the world’s most stringent food safety management standards, ISO 22000 certification. The established procedures within our food safety system ensure we are providing the highest quality, food-safe reusable packaging for the perishable food supply chain.
Other general benefits of leasing? If you want to test new equipment or even a packaging change – that can be done on a trial basis. Leasing gives you the ability to evaluate the benefits without the longer-term commitment that comes with ownership.
All that lets you maintain your focus on making strategic improvements and investments aimed at bringing value to your customers and improving your bottom line. Given the highly competitive nature of the retail grocery industry, that can only work to your advantage when it comes to building loyalty with existing clientele while attracting new customers.
Once you consider all the variables associated with owning versus leasing, you may find your business is better served if you focus your expertise and capital resources on customer-facing improvements — and let the experts at Tosca handle your product transportation.