Until recently, suppliers of packaged systems, “Packagers”, were called upon simply to put the various components of a design which was produced by the client. Essentially, packagers were glorified model aircraft enthusiasts with little, if any input into the design process which was left entirely in the hands of the client. Even the engineering aspect was handled by the client; the packager simply assembled.

A major issue with this approach was that the client is frequently in a situation where they do not have the in-house design expertise or the practical experience in implementing the project under consideration. Even for those clients with in-house design and engineering capability, the economics of maintaining such staffs together with the resources they need means that it is not viable to continue to operate in such a fashion. The contracting out argument becomes ever more compelling in order to cut costs and pay for the service which is used.

Out sourcing allows companies to maintain their focus on what they do best. The current financial circumstances and the budgetary constraints which have taken place in the last 2 years, have led businesses to rein in extraneous spending, shed corporate fat wherever possible and maintain bottom line contribution. In addition, there is increased demand for greater speed and greater cost efficiency and this situation has directly led to increased demand for packaged engineering systems.

Packaged systems have themselves evolved to meet the growing demands of customers which has taken them from simply “build to print” contractors. Companies are finding that using the services of a packager also means gaining the ability to outsource the design and engineering aspects of the project. This means that clients can access design and engineering expertise which they either do not have in-house or they do not need in-house any longer. In either instance, design and engineering aspects of the project are handled by staff with greater experience and technical skill than is usually available to the client and this competitive advantage is also obtained at a reduced cost.

As the packager is also frequently experienced with the solution requirements of the client, the finished product is frequently able to move to completion at a faster pace than using other methods. A further advantage of packaged systems is that they tend to be “application specific”, in that they are unique to the individual client. Using a packaged system provider ensures the client no longer needs to burden in-house teams with the need to design, engineer or assemble and this means significant operational and cost efficiencies.

Packaged systems are not the same as they were five years ago and are certainly very different from those of 20 years ago. Considering packaged systems involves a broadening of your understanding as to what packaged systems are and the greater range of services which are now offered. It also means changing how you look at your own business and the necessity to maintain a cost and resource overhead to retain a design and engineering team to handle projects which are unlikely to provide the expertise necessary to deliver a project solution on time and on budget.

Author Bio: Lawrence Reaves works with Colfax Corporation, a leading provider of fluid handling equipment such as oil injection pumps and marine pumping equipment. Colfax Corporation can be found online at: ColfaxCorp.com .

Category: Business
Keywords: packaged systems,packaged engineering systems,engineering systems,packaged engineering