Fulfillment is a real challenge when your demand is constantly growing but your process remains manual and slow. Automated baggers can increase efficiency, stay on top of the demand, be a useful component in your company’s chain of custody, and aid in the consistency and quality of your company’s packaging and labeling.
They are also cost-effective which makes their ROI even sweeter.
For a full reading on all the reasons why automating your bagging process will make you money you can click here. But for the purposes of this post, we are talking cost reductions.
COST REDUCTION 1: HUMAN LABOR & ERROR
There is no denying that people are expensive to employ, and they are fallible – they’ll make mistakes, especially as far as repetitive and tedious tasks are concerned. These kinds of tasks have people less engaged. Less engaged and the slower it takes to get them done while the likelihood of error also increases because people aren’t as sharp when they are operating on repetition (and maybe even boredom.) When you must increase their hours to meet demands, this increases that chance that human error is going to exist.
Depending on the type of error, there could be any number of costs associated: the time it takes to resolve the issue; the replacement of the product if broken or damaged; a redo on the package, label, or other materials; etc. Then, factor in that you’ll be paying your labor for any overtime that is required to keep up with fulfillment. Autobaggers streamline processes with accuracy and efficiency which reduces costs on all fronts.
COST REDUCTION 2: ENERGY CONSUMPTION
Implementing autobaggers may provide you the opportunity to reduce the energy required in creating finished packaged goods. You may decrease greenhouse gas emissions or lower water usage to produce packaging materials – all depending on your models and solutions. But if energy and sustainability are important to your business, this is an added benefit of implementing automated baggers. The lowered energy savings could reduce the expense to your power facility and thus, your bottom line. Your actual energy cost savings may vary so consult your local expert.
COST REDUCTION 3: SHIPPING & PACKAGING
With USPS and FedEx moving away from shipping by weight to shipping by dimension, and offering more shipping bags versus boxes, you’ll be saving yourself significantly in the manner of shipping-related costs. How much extra have you spent in materials (postage and packaging) because you haven’t had a great marker or measurement for what you have spent previously? Or how much extra have you spent by using the wrong packaging for a product? In a case study done on the Autobag PaceSetter PS 125 OneStep, a Nutraceuticals company saved an average of $0.17 postage per package because the mailbags weigh less than padded envelopes.
At 5000 packages per day, it equated to $850 per day in postage savings. Automated baggers can help maintain consistent costs by consistently packaging materials for your products and providing measured data that makes it possible to more accurately predict future expenses.
The bottom line: Autobaggers help your bottom line by reducing costs associated with manual labor, energy consumption, and packaging/shipping.
The ROI is well worth the improvements these baggers will make to your systems and operations. They are a HUGE win for your business because they 1) save you costs while they 2) also increase your profits by improving your efficiency and productivity and 3) contribute to sound chain of custody. Plus, they keep your packaging and labeling consistent. Sold? You should be. It’s time to start window shopping for your perfect model. Get in touch with us to learn more about our automated baggers and the perfect solution for your enterprise.
