The numbers will drastically increase so I have no idea the best machine to suit our needs. If we needed a much bigger machine I would still want some small ones around in case the big one broke down.
The new packaging business I mentioned at the end of last year and the beginning of this year where we have to receive the bulk supply and then package them is behind schedule. The product has already been launched in Australia and has over 100 000 customers which is reassuring and the numbers are increasing monthly.
As pleasing as that all sounds this has been delayed due to the Straits of Hormuz and global shipping routes. For some reason our product comes from the Far East (not China) via Dubai and we are currently 6 weeks behind schedule. The starting up and launch in South Africa will have to wait for the time being. This even though is frustrating may actually be a blessing in disguise and gives everyone more time to prepare. The start up figures I already have a ball park number in mind and know roughly how quickly that investment will be returned. This may change depending on which machine is required and would like to use what they currently use so that ball park figure may be stretched out a little.
The thought process behind the owners logic is sound as for the time being they are flying in stock. The bulk consignment which we need to move to the next stage once it arrives will have a full marketing budget behind this and only then would that trigger a production packaging line here in Johannesburg. No point in marketing right now if the stock is in short supply and the sales could not be fulfilled.
The owner has had a change of heart with regard to packaging production lines in Europe and a pick and pack warehouse is what will be required instead. The plant in Johannesburg will supply Europe due to South Africa having favorable trade terms with the EU. This we all know could change and will have to pivot if required further down the line.
The good part about all of this is the pick and pack warehouse is still required in the EU and the Portugal move is still very much in play. Relocating to another country is hard enough besides having to find a business for a source of income so this is still very good news and changes things very little. Pick and pack is our current warehouse business so this would be very simple to implement very quickly. These days it does not matter where you are based as the courier network is so advanced and intertwined these days delivery costs are not expensive when dealing with bulk shipments.
All this means is the production facility in Johannesburg will be that much busier than anticipated meaning many more packaging machines. This I am happy with because I can make sure things are set up correctly and functioning how they should be. I have no idea how successful sales will be in South Africa for this product but going by Australia's figures then Europe should do very well.
The business partner who I am involved with in this particular project is a very old friend going back over 20 years. I knew of him in the army as he was stationed at the same base for basic training. We never met then and only 15 years later, but still recognized each other. There is a close bond which has been formed over the years and we chat weekly helping each other think through any business issues. I would say I know his business as well as he does because I need to know and understand it in order to help with advice.