Advice on purchasing machines

Purchasing a new or used machine is a special investment for companies. External purchasing advice from experienced experts minimises the risk of mistakes and subsequent disputes with the supplier

Overview

Buy new or used machinery and equipment ...

… for production/manufacturing in industrial companies:

general aspects and the question
a new machine or
order a used machine?
Common points of contention after delivery has been made.

Order and purchase of a new machine

When purchasing machines, it is fundamentally important to clarify the necessary requirements in detail in advance of an order in order to avoid discrepancies or disputes with the supplier later on. That’s why it’s also important to consult with outside experts who can bring in experience from other cases and litigation. If technical problems occur after delivery, an expert opinion on the preservation of evidence will help in the first instance.

General aspects when buying a machine or industrial plant

Professional advice on the purchase of machinery and equipment from (external) experts is an important step in ensuring that companies make the right investment decisions and select the best possible industrial machinery for their specific requirements. Machinery and equipment surveyors are experts in this field and have the necessary knowledge as well as experience to support companies in their purchasing decisions. Here are some important aspects that are considered in a professional expert buying advice:

Needs analysis (“requirements list”): The expert usually starts by analyzing the needs of the company. This includes identifying the specific tasks that the machines or equipment must perform, as well as the capacity, performance and precision requirements.
Market analysis: The expert researches the market to determine the available options of machinery and equipment. This includes the evaluation of different manufacturers, types and technologies.
Cost analysis: The cost of purchasing and operating the machinery or equipment is analyzed to ensure that it is within the company’s budget.
Technical evaluation: The expert evaluates the technical specifications of the machines or equipment to ensure that they meet the requirements (according to point 1) of the client. This includes checking performance, precision as well as other technical features.
Economic evaluation: If necessary, experts perform an economic evaluation to determine the long-term costs and benefits of the machinery or equipment.
Recommendations: Based on the analyses, recommendations are made to conclude the purchase consultation so that the client can make a purchase decision.

Some advantages and disadvantages of purchasing a new industrial machine or equipment

Advantages include:

Reliability and efficiency: New machines are usually more reliable and efficient than older models.
Warranty and Support: New machines usually come with standard warranties and support from the manufacturer.
Latest technology: New machines usually use the latest technology and innovations, which can improve product quality and production efficiency.
Regulatory compliance: New machines should comply with the latest regulatory and safety standards, which can help avoid legal problems (as an operator).

Disadvantages include:

High acquisition costs: New machines are usually more expensive than used machines, which can be a significant financial burden.
Short-term impairment: The value (“fair value”) of a new machine may initially decline more rapidly.
Longer delivery times: New machines often have to be ordered from the manufacturer, which can lead to longer delivery times that delay commissioning and reduce productivity for the subsequent operator.
Unforeseen problems: Even new machines can have manufacturing defects or product fla ws that don’t show up until after purchase, which can lead to downtime and additional costs.

Important:

Professional advice on the purchase of machinery and equipment from experts can help companies make the right investments, increase efficiency, reduce costs as well as follow-up costs, and maximize long-term profitability. It is important to engage qualified and experienced experts to ensure that the advice is sound and objective.

Order and purchase of a used machine

Purchasing machinery, whether new or used, can be fraught with technical issues and challenges.

Before you buy a machine, you should carefully weigh the advantages and disadvantages of new and used machines.

If you are unsure or buying complex machines, you should consult technical experts or experts with a purchase advice.

Some advantages and disadvantages of buying a used industrial machine or equipment

Advantages include:

Cost savings: Used machines are usually significantly cheaper than new machines. This allows companies to save money and free up capital for other purposes.
Quick availability: Used machines are usually available promptly, while the procurement of new machines can involve longer delivery times.
Proven performance: When a used machine has been in use for some time, the performance and reliability of the specific machine are usually well known.

Disadvantages include:

Uncertainty about the condition: Used machines may show wear and defects that are not immediately visible.
Limited Warranty and Support: Unlike new machines, used machines often offer a limited warranty. It may be difficult to obtain spare parts and technical support (“maintenance”).
Obsolete technology: Used machines may have obsolete technology and features that may no longer meet current requirements or be efficient enough.
Maintenance and repair costs: Since used machines are often older, maintenance and repair can be more expensive. Spare parts procurement can become a problem.

Recommendation:

Overall, the involvement of surveyors and experts when purchasing a used machine provides additional expertise to ensure that the manufacturing company’s investment is successful and reduces the risk of unexpected problems or costs.

Frequent points of dispute after delivery

The purchase and delivery of industrial machinery can involve both technical and legal problems. If technical problems occur after delivery, an expert opinion on the preservation of evidence will help in the first instance.

Often the purchaser and later operator as well as the supplier of the machine accuse each other of the same thing over and over again. This is almost independent of individual delivery.

Some “accusations” can be found in the following text.

Few exemplary examples of post-delivery problems are:

Different opinions about the technical content of a placed order and the resulting delivery are unfortunately not uncommon and can lead to conflicts between buyers and sellers. One party then claims that what was actually ordered has not been delivered. The other party claims exactly the opposite.
The Supplier claims that the Purchaser’s personnel is unqualified. This is the consequence of the (technical) problems, the supplier claims in the argumentative consequence.
The purchaser claims that there are design defects and therefore the delivered machine is defective.
…
…

The above list can be extended with many more examples from practice and become “very long” in total.

It is important to approach such disagreements in a professional and constructive manner, as protracted disputes are usually expensive and time-consuming. The best course of action depends on individual circumstances and the extent of the disagreement. Clear documentation, binding communication, and adherence to contractual agreements are critical to avoiding or successfully managing such conflicts. This is one of the reasons why external experts are needed to advise on the purchase of new or used machinery.

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