In 2013, a nationally recognizable bakery relaunched after a huge outpouring of support from Americans following their bankruptcy filing. Because they were looking for ways to trim costs, they re-evaluated their packaging operations, looking into automating, since the previous processes were costly and inefficient.
- Labor costs too high
- Frequent employee injuries
- Keeping up with production
The management team needed a solution to their initial problems, and they were smart to act. After their relaunch, demand increased by nearly 600% over what it had been prior to their bankruptcy filing. That’s a huge increase and difficult to keep up with. Good thing they looked into packaging automation with IPS Packaging.
End-of-line packaging automation. By automating their end-of-line process, which included adding case sealing operations, they were able to meet the huge surge in demand while decreasing their expenses. They were also able to do that while cutting labor costs. They were able to go from eight operators per line, down to two, which netted huge direct and indirect labor savings. How did they keep up with production demand if they decreased the amount of employees on the line? Simple.
Check out this stat: 1 person using a case sealer can process in 5 minutes, what someone hand sealing can do in 30 minutes.
It takes less time to perform the work needed when you’re using packaging equipment. The automated process will always increase your production rate.
Another hidden cost saving initiative that switching to an automated case sealer can provide is an increase in worker health and safety.
Musculoskeletal injuries (injuries that affect the human body’s movement or musculoskeletal system; muscles, tendons, ligaments, etc.) are the leading cause of employees missing work. Non-fatal workplace injuries related to musculoskeletal disorders cost businesses more than $21 billion every year and account for over 40% of total cost burdens to business.
Today, the bakery is well equipped to run higher line speeds without adding extra labor due. All due to their forward thinking management team and the automation of their packaging operations.