Many factors are involved when a business considers whether it would be best to rent intermediate bulk containers (IBCs), or to purchase the needed stainless steel IBCs. Different business scenarios present different potentials, and the rent vs. buy decision can depend much on the position of the company's financial goals, and on the stability of the company's production or manufacturing volume.
Both renting and buying have their pros and cons. The following list of questions are helpful in offering foresight when determining which path may be best for your industrial or manufacturing needs:
• Does the company have available capital for purchasing the number of IBC's needed?
• Are future purchase orders solid and backed up by long-term customer relationships?
• Would the projected costs of renting prove more expensive than the cost of ownership?
• Will increased future capacity require a broader range of IBC sizes or types?
• Is the length or frequency of production volume likely to change?
• Can the company support the required maintenance and repair of IBCs?
Even with a concrete answer to the above questions, it is good practice to obtain an accurate cost analysis of renting vs. purchasing. Talk with a reputable stainless steel IBC sales representative with years of experience in offering both lease and purchase options for intermediate bulk containers for small and large operations.
Benefits of Renting Stainless Steel IBCs
For some companies purchasing large stainless steel IBCs would put a substantial drain on corporate capital. While capital expenditures may increase physical assets and offer the opportunity to expand the scope of operations, they can also prove detrimental if the expected return on investment (ROI) is not realized.
Taking a realistic look at your business finances and making an informed, data-driven decision can lead to the less expensive option of renting. In this way, inventory and production fluctuations, one-shot purchase orders, and seasonal demand spikes can all be accommodated by renting only the number of high-quality tanks required and only for the length of time needed.
Another benefit of renting stainless steel totes is the collaboration with an IBC manufacturer that has industry expertise to assist your company's product handling, storage, and transport processes by calculating the right size totes and recommending the right type and features for your application.
A strong alliance with an IBC supply chain equipment provider can help your company avoid wasted time and effort by providing cost-effective solutions while keeping you up to date on equipment and logistics innovations. This includes upgrading tanks with the newest models and provide regulatory testing and inspections to make sure your equipment remains safe during operation.
When Purchasing Stainless Steel IBCs can be the Right Decision
It's great news when a business has more orders than it is able to fill with current equipment and methods. Opting to expand capacity with the purchase of new 350-gallon stainless steel IBCs can be beneficial for many financially solvent business operations. The issue then becomes buying good quality, durable IBCs that will offer many years of in-house service.
A reliable IBC manufacturer will provide high-quality tanks that meet UN and DOT regulations and also offer value-added services such as IBC cleaning, testing, tracking, and repair. Considering the capital investment, these companies often seek assistance with warehousing logistics and web-based tracking and reporting solutions to improve on operational costs.