Is a Robotic Case Packer Worth It? ROI, Flexibility, and When to Upgrade
If you have ever had to defend the cost of automation to a production manager, you likely can relate to the discussion about value. It is not a question of if a robot is valuable but rather a question of if a robot is valuable to your line. There comes a time for every plant when the manual or semi-automatic process that was so valuable begins to feel more like a limitation and less like a solution. It is at this point that a manager must ask him or herself if the robotic case packer is a worthwhile investment or if an automatic case packer without robotics will suffice.
Automatic vs. Robotic Case Packing
A automatic case packer typically removes a large amount of labor from the packing process by completing the forming, filling and sealing functions, while a robotic case packer removes an additional layer by allowing the packing process to be more flexible and adaptable to the needs of the line.
The ROI of a Robotic Case Packer
The value proposition for a robotic case packer is not typically found in a singular area, but rather in several areas coming together such as labor reduction, reduction in damage claims, less downtime overall and increased flexibility in meeting production needs. In many cases, companies that only consider the labor savings when calculating the return on investment for a robotic case packer greatly underestimate the payback period because they do not take into consideration the value of an automated system that can meet production needs when demand increases. One good way to calculate the value of a robotic case packer is to consider the cost per case packed of your current process versus the potential cost per case packed if a robotic system was put in place, factoring in labor, waste, and downtime. At a certain point, particularly in mid to high volume producers, the payback period for a robotic case packer typically falls within two to three years based on wage rates and shift needs.
Flexibility: The Next Level of Value
The short answer is flexibility. While many people think about the value of a robotic case packer in terms of cost reduction, flexibility is a huge factor in the value of a robotic system, particularly after the payback period. The ability to adapt to the changing needs of a product line is one of the greatest strengths of a robotic case packer, and the most valuable to producers who are frequently changing products, case packs or who are looking to reduce material usage and utilize more sustainable materials which may require additional automation tweaks to account for differences in material weight and packaging. A robotic case packer is ideal for companies that are frequently changing SKUs on a line, while an automatic case packer may be a suitable option for producers with a smaller SKU base that is unlikely to change. Integrating packaging line automation can help these producers improve efficiency while maintaining flexibility.
Warning Signs It Might Be Time to Upgrade
There are not many hard indicators as to when a producer should consider moving towards a robotic case packer, but there are some factors that when taken together suggest a producer should explore the value of a robotic case packer. If changeovers are becoming more of a burden to the production schedule, then it may be a good time to evaluate if a robotic case packer is right for the operation. Similarly, if increasing labor costs and turnover rates are making it difficult for staff at a manual packing station, this may suggest a need for a robotic case packer. Lastly, if a producer is outgrowing their current production capabilities and frequently must dedicate more resources to packing than they did previously, it may be a sign that the current system is limiting the growth of the company.
Key Questions Before You Switch
The short answer to this question is to understand:
- How much your product mix or case pack changes
- How much your downtime costs
- If your current system is limiting your growth
- If your sustainability or labor goals require flexibility that an automatic case packer does not offer
Final Thoughts
While a robotic case packer is right for many producers, it is not right for all producers. A case packer without robotics is still a great option for many producers that are not looking to change much about their current production process and are focused more on reducing labor costs than flexibility. It is ultimately a question of how much change a product line is expecting to see in the future and how much change is currently being felt. By working with an experienced partner, such as Tecma-Aries, a producer can make a well-informed decision about the value of a robotic case packer based on their individual production needs.