Packaging Cost Savings: Large Retail Company Saves on Tape

In some occasions packaging operations allow us to save them money, and big money at that. By conducting a simple packaging audit for a retail company, we were allowed to break down their savings in four important categories: labor, tape yield, safety and equipment.

The Situation

A large retail company started searching for alternatives to their packaging tape so they can save on cost of product, labor, equipment and still meet safety standards.

The Solution

With the retail companys criteria in mind IPS Packaging put together a proposal for water-activated tape and tape dispensing equipment. Here is what we came up with:

Labor Savings:

• 50% less time per carton
• Processing approximately 2.76 million boxes per month
• Saving 7 seconds per box
• 5379 man hours saved per month
• Total savings per year:$968,333

Tape Yield Savings:

• 30% less material per carton
• 100 million feet used per year
• Saving 30 million feet per year
• $.005 cost per foot
• Total savings in tape:$150,000

Safety Savings:

• $30,000 per employee in Repetitive Motion injuries (per OSHA)
• Average employee works 20 years
• $1,500 per year, per employee
• 200 employees
• Total Medical Savings per year:$300,000

Equipment Savings:

• $900 per dispenser
• 200 dispensers
• $180,000 in dispenser costs
• Free dispensers with 2-year agreement
• Total savings on dispensers:$180,000

Total estimated savings for the company: