Save on Material -
On average paper cushioning will cost $0.02 more per box than air pillows.

Save on Shipping -
On average air pillows cost savings of $0.09 per UPS package. This is based on 30% of packages rounding to the next pound.

Save on Labor -
It is approximately 6 seconds faster per package with air pillows; This is assuming a loaded labor cost of $14/hour, savings equaling $0.02 per package.

Conclusion: Overall cost savings is estimated at $0.13 per package, or approximately $33,500 a year.

Situation: A large retail company started searching for alternatives to their packaging tape so they can save on cost of product, labor, equipment and still meet safety standards.

Solution: With the retail company%u219s criteria in mind IPS Packaging put together a proposal for water-activated tape and tape dispensing equipment. Here is what we came up with:

Labor Savings:

• 50% less time per carton
• Processing approximately 2.76 million boxes per month
• Saving 7 seconds per box
• 5379 man hours saved per month
• Total savings per year: $968,333

Tape Yield Savings:

• 30% less material per carton
• 100 million feet used per year
• Saving 30 million feet per year
• $.005 cost per foot
• Total savings in tape: $150,000

Safety Savings:

• $30,000 per employee in Repetitive Motion injuries (per OSHA)
• Average employee works 20 years
• $1,500 per year, per employee
• 200 employees
• Total Medical Savings per year: $300,000

Equipment Savings:

• $900 per dispenser
• 200 dispensers
• $180,000 in dispenser costs
• Free dispensers with 2-year agreement
• Total savings on dispensers: $180,000

Total estimated savings for the company: $1,598,333

IPS Packaging has a highly developed Fabricating Division. By constructing custom, cost effective, foam product solutions for our customers, our fabricating services will help eliminate an entire step in the protective packaging process. The goal of our Fabricating Division is to optimize customer's inventory requirements. Whether the packaging requirement is precision cushioning, high-speed void fill or heavy duty blocking and bracing, we have a protective formulation for all applications.

• Protective Packaging that is custom designed
• Process improvement
• Inventory Monitor on-site for customer demand