Sample Return-on-Investment Profiles for Small and Large Companies

Companies of all sizes are constantly challenged to keep pace with the evolution of today's business world. As new standardization guidelines speed up business processes, companies are forced to bring operations up to top speed and efficiency, leaving little room for error. In fact, the smallest of errors can cost companies enormous profit-loss for non-compliance of standards set by large retailers and manufacturing plants.

Winco knows the importance of a well-designed label applicator system to keep production running smoothly, decrease operating costs and be flexible enough to grow as your business changes.
To see a sample savings analysis for a small manufacturing operation, click here.
To see a sample savings analysis for a large manufacturing operation, click here.


Small/Mid Size,One Station - Manufacturing Operation
Sees Pay Back in Less than Three Months


This smaller company realized considerable savings, increased operating efficiency and accurate label placement with one print & apply station added to their production line. With one person averaging three hours per day to print labels and two people applying labels, production lines moved along until one person was out, or labels were placed incorrectly. This company could not afford the stiff penalties or rejection of shipments for non-compliance to strict labeling specifications of the larger retailers. Ordering several lots of preprinted labels, each with ordering minimums and separate inventory control numbers added to their cost of business. Each time a product changed, production conveyors stopped, and the labels were changed to match the next product. Rolls of labels were damaged or lost when not returned to a safe inventory place which resulted in increased operating costs. After a careful assessment of the production process, a new system using a combination of preprinted labels which were customized by printing the variable information on demand, eliminated the need to change the rolls of labels, increased efficiency on the production floor and decreased inventory costs and waste.  It took less than 12 weeks to see their return on their investment in a single automatic print & apply system.

Cost of Equipment: $16,000   Pay Back Time: Less than 12 weeks
LABOR COSTS
*Totals for labor include an 18% burden factor
(wages, taxes, benefits)
Hourly Wage Hours/Day Days/Week Personnel Weekly Total
Label Printing
$10.00
3
5
1
$177.00
Hand Applying
$10.00
8
5
2
$944.00
Purchasing Materials
$20.00
1
1
1
$23.60
Subtotal:
$1,144.60
MATERIAL COSTS
Current Cost
Proposed Cost
Units/Shift
Shift/Week
Weekly Total
Labels $/1000
$15.00
$11.00
12
5
$240.00
Ribbons
$0.00
$0.00
0
5
$0.00
Subtotal:
$240.00
Cost of Equipment:
$16,000.00
Total Annual Savings:
$71,999.20
Pay Back/Weeks:
11.56


Large Five Day/Week Manufacturing Operation
Sees Break-Even in less than 90 days

This manufacturer runs a double-shift labeling operation, five days a week. Using a combination of preprinted lables and batches of lables printed-on-demand, they estimated one person for 4 hours per shift to print labels and 18 people working both shifts to apply them to packages. The number of labels applied per hour goes down when the label needs to be applied in an exact location according to compliance mandates and quality control specifications. With an automatic applicator system placed at each of 15 production lines, labels are placed exactly where they need to go, faster and with a higher degree of accuracy. The ROI on this system does not include any savings for materials or warehouse space since this company did not change how it used labels, simply how they applied the labels. Pay back on their hardware investment can be seen in less than 90 days.

Cost of Equipment: $225,000   Pay Back Time: Less than 13 weeks
LABOR COSTS
*Totals for labor include an 18% burden factor
(wages, taxes, benefits)
Hourly Wage Hours/Day Days/Week Personnel Weekly Total
Label Printing
$10.00
8
5
1
$472.00
Hand Applying
$10.00
16
5
18
$16,992.00
Purchasing Materials
$20.00
1
1
1
$23.60
Subtotal:
$17,487.60
Cost of Equipment:
$225,000.00
Total Annual Savings:
$909,335.20
Pay Back/Weeks:
12.87

 
How to Cost Justify a Print & Apply or Automatic Applicator System

Winco can show you an up front, estimated Return-on-Investment for an Applicator or Print & Apply System at your company. Many customers see an ROI in just six to eight months. To see how our system can further your operating dollars, answer these few questions, submit this information on-line, fax it to us, or call for assistance. You can expect a reply by the following business day.


LABOR COSTS
Enter the average hourly wage paid Enter the average # of people hours/week
Hand applying labels
Printing & Rewinding labels
Purchasing preprinted labels/boxes
What is your company's burden factor?
(ie: typically 18% becomes 1.18)

You may be paying too much for your preprinted labels and boxes or ribbons. We can show you how to cut your costs with a system designed to get the maximum benefit and flexibility from preprinted and printing on demand systems. If you are not using the right combination of preprinted and blank media, you may be spending valuable time and resources carrying more inventory than you have to, and inventory costs money. Maximize your operating dollars with a Winco print system solution and media.

MATERIALS COSTS

Enter the current price paid per 1M units Enter the annual usage per 1M
Preprinted Labels - $/1000 <>
Preprinted Boxes - $/1000

Enter the current price/unit Enter the annual usage
Ribbons

WAREHOUSING COSTS


Enter the current sq.ft. of warehouse space used Enter the annual value per sq.ft.
Preprinted Labels
Preprinted Boxes

WASTE


Enter the estimated annual dollar value lost due to waste or obsolete inventory for each item
Preprinted Labels
Preprinted Boxes

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You will receive a reply by the following business day.

 

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