A good return on investment (ROI) is important for any business. Finding ways to reduce costs is good for cashflow, as long as the quality is maintained, however, there are times when larger investments are required to help move a business forward. For example, investing in automated packaging machinery and switching to fully automated processes to become more cost efficient.
Why Automated Packaging Machinery?
ROI can be defined as the percentage of profit that a company is able to make on total investments. In order to achieve this, businesses must work to increase their revenue, whilst also reducing costs where possible. Investing in the automation of packaging processes can be an effective way to achieve both of these goals.
Packaging machines such as pouch filling or form fill and seal machines can modernise, speed up and increase the efficiency of packaging processes for an extensive range of products (including both solids and liquids). Combining these machines with automated ancillary equipment will create a completely automated packaging line.
Packaging lines move filled and sealed packages along a conveyor belt to a sorting machine that counts packages and sorts them into the right number, ready for boxing. Whilst erecting and packing boxes is often a task left up to manual labour, a case erector or cartoning machine considerably increases the speed and efficiency of this process.
Let’s look in more detail at the ways that automated packaging processes help to reduce operational costs and generate revenue for a business.
Improving efficiency and productivity
Firstly, one of the most important benefits of switching to automated packaging processes is that it can improve efficiency and productivity. As packaging machinery can work at high speeds, labour costs can be reduced considerably. By integrating machinery such as pouch filling or form fill seal equipment with sorting machines, automatic case erecting machines and shrink wrapping machines, the amount of labour required for the complete packaging line is cut right down.
When you factor in that these automated processes are also completed at much higher speeds than can be achieved manually, the potential for increased throughput is huge.
Free up resources
By automating packaging processes, resources that would have been spent on labour can be redirected towards other areas of the business.
24/7 operation
When pressure is on to deliver packaged products within tight timeframes, one of the key benefits of packaging automation is that machinery can operate continually to ensure that production continues without interruption, helping to increase productivity and generate revenue.
Reduce errors
Whilst a human touch can be extremely beneficial in many areas of business, manual labour can also mean lower levels of packaging consistency, and a greater potential for human error. As a result, errors can lead to wasted time, packaging materials and products.
With modern technology, packaging machinery is able to operate at the highest levels of precision, ensuring that each packaging product is consistent. In 2023, the consumer expects consistency, so any packaging that is anything less can be enough for some consumers to lose trust in a brand and product.
Improve worker wellbeing
In addition to the above benefits of automated packaging processes, automation also helps to improve worker wellbeing. In a busy packaging environment, when deadlines must be met, manual processes can lead to a higher risk of injuries, particularly repetitive strain. The result is that manpower is lost, and productivity slows down.
Even without physical injury, manual packaging processes to meet deadlines can have a negative effect on worker wellbeing. Automation helps to ensure that workers are utilised in a safer, more productive environment.
Pouch Filling Machine – ROI case study
In 2022, Intamac launched the IPS-8BT-Z, an upgraded version of our IPS-8BT stand-up pouch packaging machine. Operating at twice the speed of our existing pouch machine, the new high-speed IPS-8BT-Z achieves increased productivity and output, whilst reducing labour requirements, and reducing energy costs, all whilst taking up the same floorspace as the original machine
If you are looking for a pouch filling solution to considerably increase your packaging activity, but are worried about making such a big investment, read below to learn more about the estimated return on investment you could stand to achieve.
Estimated ROI for the IPS-8BT-Z
Based on standard 2 shift working hours, customers investing in a high speed stand-up pouch filling machine have an immediate cash flow benefit, which according to the Minimum Wage Increase will even accelerate ROI.
ROI based on ONE shift
| Equipment | Purchase cost GBP | Saving people per shift | Monthly Cost to business @ £9.50/h | Yearly cost to business | ROI YEARS |
| IPS-8BT-Z (series 6) | £110,000 | 1.5 | £2,705 | £48690 | 2.3 |
ROI based on TWO shifts
| Equipment | Purchase cost GBP | Saving people per TWO shifts | Monthly Cost to business @ £9.50/h | Yearly cost to business | ROI YEARS |
| IPS-8BT-Z (series 6) | £110,000 | 3 | £5,410 | £64,911 | 0.6 |
Minimum Wage Increase Estimates
| Hourly Wage | Yearly Cost to business | National Insurance | Pensions | Monthly Cost to business | Yearly Cost to business | |
| 13.8% | 3.0% | |||||
| 2023 | 9.5 | £18,252 | £2,556 | £556 | £1,803 | £21,637 |
| Est. 2025 | 10.5 | £20,580 | £2,840 | £617 | £2,003 | £24,037 |
Invest in Packaging Machinery
By providing a faster and more efficient packaging process, automated packaging machinery can reduce operational costs and increase profits, providing a solid return on investment for businesses that choose to upgrade their packaging processes to fully automated solutions.
To discuss your packaging machinery needs and to learn more about the ways packaging automation can help you reach your business goals, call Intamac on 01420 593682, or contact us via the form below.
