Automated Label and Apply Printer Shows ROI in 8 Months

Executive Summary

A manufacturing company was struggling with constantly hand-applying printed UPS labels to be added to envelopes and packages. With the high cost of hourly labor of employees as well as human error that would occasionally result in misplaced labels, this company was searching for a solution that would allow them to be more efficient and cost-effective. FlexPAC was able to identify an automated solution to help this company reduce labor costs and see a return on investment within only eight months.  

Previous Challenges

The customer employed 6-10 people to peel off printed UPS labels and hand-apply the labels to envelopes and packages to be sent out. Each employee was costing the company around $15.00 per hour, and the process was cumbersome and extremely time consuming. Another issue was the inconsistency of the label placement, which would occasionally lead to rejected mail.

FlexPAC’s Process

The customer’s goal was to replace several of these hourly employees with an automated system that would help them “print and apply” and maintain a throughput of at least 40 envelopes per minute. Two of FlexPAC’s Solution Providers went to the primary site location to conduct an onsite meeting. The Solution Providers concluded that the Walco feed and conveyor system combined with a CTM labeling system was the best solution for the customer. These two machines working together would allow for the customer to reduce their hourly employee expense, while increasing label accuracy, throughput, and efficiency. 

Results

The customer was able to see a return on investment much faster than expected with the implementation of this machine. The customer’s goal was exceeded in both throughput and ROI. The machine is able to produce 45 labels per minute (their goal was 40 per minute). They were also able to see a return on investment within 6-8 months, where the customer had hoped for an ROI within one year. Not only has this customer been extremely satisfied with this machine, they also have purchased a second machine in the same facility within a six-month period of time. This solution has allowed the customer to experience increased yield and productivity gains, as well as a reduction in labor costs and overall ergonomic efficiency.