Tackling labour costs during peak
If you’ve checked out our blog before, you’ll know we talk a lot about the hidden costs of packaging… and how 90% of your packaging costs are hidden behind the unit price of your packaging materials.
Today, we’re focusing on labour costs. Did you know that the National Living Wage is to rise to over £8.00 an hour by 2019 (1)? Whilst it’s a step forward for the public, businesses like yours are set to shoulder the increase. As costs rise, you’ll be under pressure to offset expenditure and make savings throughout your business.
Also, as your business goes in to peak operating periods, labour costs can be a challenge. Many companies employ temporary staff, which can be expensive – especially if you’re paying agency rates.
So, how can packaging help you tackle labour costs during peak?
In short, having an efficient packing process and fit-for-purpose packaging will save your company money. The more efficient your operation is – the fewer temporary staff you’ll need during peak, allowing you to ease cash flow in high-pressure times.
Here’s how packaging can help you reduce costs during peak…
Increased efficiency – consider automation
If your business operates in a high-demand environment, you might want to think about installing packaging automation in your warehouse. From automated labelling through to case erectors and in line pallet wrappers, you have lots of options to choose from. Even simple changes like upgrading to fully automated conveyors rather than relying on gravity fed lines will help you become more efficient.
Whilst automation does require initial investment, it allows you to reduce the number of temporary packers you need during peak providing return on investment in no time!
Get more goods out of the door – review packaging assembly times
As you go into peak, higher demand means you’ll naturally need more people to cope with demand. Can your packers assemble your packaging materials quickly enough? If you’re using packaging that’s hard to put together, it impacts the number of packs that can be produced per hour.
Alternatively, if you provide easy assemble packaging, you’ll increase packer efficiency and reduce the number of temporary staff you need and therefore make savings.
Easy to use packaging such as crash-lock boxes or our quick to inflate Airsacs as a protective packaging solution, are fitting examples of productivity enhancing packaging.
Optimise labour for output – evaluate the impact of your packaging deliveries
Have you ever given much thought to how frequently your packaging is delivered can impact your company’s costs and time?
If you don’t have a service level agreement in place with your packaging suppliers, you may be at the mercy of too many or too few deliveries, at any time of day. This has a significant impact on your labour costs. Lots of deliveries mean more people required to unload them, this also means your staff could be spending more time unloading materials rather than dispatching your goods.
We always work with our customers to ensure we have service level agreements and delivery schedules in place that benefit them. Our just-in-time delivery service means you only pay for the packaging you’re using and frees up your storage space, as well as reducing the labour required for unloading you packaging materials.
Get in touch to start tackling your packaging costs
Want to learn how we reveal the true cost of your packaging? Click here. Our professional analysis can help you tackle all the hidden costs in your packaging, including labour. Contact us for to book a free packaging audit today!
Sources
(1) National minimum wage rise
