4 Signs that Your Should Consider Automated Packaging

28-September-2023

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Startups and small businesses usually count on manual work for packaging when they are at the early stage of introducing their products into the market which should be sufficient to meet the demand of on-the-spot orders. However, as long as you have read the ‘Principle of Economics’ by Mankiw [1] you would know that as the company grows, both the average fixed cost and average variable cost will increase and with regard to the packaging process it is all about the manual cost and facility you may need to keep your mountainous payroll to work.

The concerns are that while the company is growing in the long term, it may not be able to keep abreast of the increasing demands of orders by counting only on manual processes. Especially in the sector of consumer goods [2] where demands frequently see seasonal spikes or sudden demand growth that the company will have to pick, pack, and ship seamlessly and constantly. Relying still on manual processes can lead to considerable operational costs when orders keep increasing – the idea here is that the company should both consider improving their operational efficiency as well as reducing the cost. Such is the timing when a company has to automate its packaging process.

In this article, we discuss the primary signs that a company is ready for packaging automation.

The Essentialness of Automation for Operational Excellence

Automation is defined as the technology with which an operational process can be carried out with minimal manual or human intervention or assistance. [3]

Regardless of the fact that automation in production and manufacturing has different forms and can be fixed, soft, or flexible, automating the packaging process helps to reduce waste caused by the inherent nature of manual work that frequently commits mistakes, as well as to reduce the average cost per packaging by standardizing the process.

Back to the topic, the following signs and timings should be paid attention to and may tell that your business should consider automated packaging processes:

Your Business Has to Constantly Hire New Staff for Packaging

A growing payroll that is still not capable of handling the coming orders is a sign that you should consider packaging automation.

Catching up the peak season to meet demands and orders is an exciting part of businesses, however, Peaksean Business Survey 2022 reveals that only less than 10% of the 3PL and retail companies rely on packaging automation to fulfill their orders. The growing payroll also entails relevant management costs apart from wages and salaries, while such expenses compared with investing in automated packaging processes are of lower Return on Investment (ROI). Even if you are able to fulfill the orders finally, the workers hired during the peaks will turn out to be a problem and redundancy for your company as unnecessary payroll and terminating the employment involves further expenses and even legal issues.

If you are struggling to meet deadlines or order amounts, make the quick move to implement packaging automation rather than hiring more people.

You Have noticed the Underlying Problems of Labor Safety and Compensation

Manual cost usually takes a large portion of the packaging operation’s cost not only in salaries as well as the expenses that occurred due to compensation, or even injury and lawsuits. The probability rises correspondingly as you hire more and more people to keep pace with the orders flocking.

On the contrary, running packaging equipment around the clock 24/7 and 365 only entails minor costs compared to employing people for 3 shifts, and, what’s more, you don’t need to call 911 upon the packaging machine’s faults. That is to say, faults and troubleshooting of packaging machines are usually not a big deal and do not need paid leave or disability.

Your Packaging is Rather Standard and Repetitive

Automation is ideal for standard packaging and to fulfill large orders.

Automation proves exceptionally beneficial when catering to the needs of standard and repetitive packaging, particularly for large-scale orders. This is primarily due to the practical advantages and efficiency it offers compared to manual labor.

Standardized packaging, typically involving components like cartons and corrugated cardboard boxes which are usually handled by cartoning machines, adheres to a consistent set of procedures. These steps include product insertion, flap folding, and tuck closures. Given the repetitiveness and precision required in these tasks, automation provides a more feasible solution to improve speed and consistency.

Such is why when your packaging process is repetitive it is suggested to leverage automation systems to handle these tasks – a decision that not only enhances the turnover rate but also significantly reduces the average cost per packaging unit – an advantage that is pivotal in a volume-driven production environment where cost and time efficiencies play a crucial role in operations.

You Want More Control Over Your Production

Packaging equipment is not only for automating processes but also provides intelligent solutions with which you may have better control over your production.

For example, the Internet of Things (IoT) incorporated within a packaging machine allows the asset owner to monitor their production with data around amount per shift, faults, downtime and reasons, overall effectiveness, etc. All of the records are tracked automatically throughout the production processes and do not need people’s intervention, manual logging, or paperwork.

Leadership has better access to the status of their production through functions like remote connectivity to check the figures recorded in the packaging machine´s system which offers unmatched flexibility compared with the manual production process and management by people and documents.