An apparel distributor was on the verge of outgrowing its current facilities because their business was increasing. Our team spent 5 days evaluating their packaging process and was able to identify an automated bagging system designed for internet order fulfillment. We replaced the manual pack and ship process, supplying four Automated Packaging bagging machines integrated with new conveyor and package handling.
In adopting this automation, the company saved on materials, labor and freight.
- Material savings came as the printed bag replaced a corrugated box, packing materials, tape and labels.
- The number of packages shipped per hour grew by over 50% with the same labor force. The time to ship an order decreased from almost three minutes per order to 45 seconds! This allowed them to handle their growth without adding additional packaging stations.
- Freight savings were substantial because the system tied into a software program that identified the lowest cost to route the package. Also, the bagged product cost less than their boxed orders had.
Total annual cost savings was $200,000, with anticipated higher returns in the future years after the equipment is fully amortized.
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