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Optimizing ROI in Your Distribution Center

Optimizing ROI in Your Distribution Center

Return on investment, a.k.a. ROI, is a critical factor in every business when measuring benefits and determining profitability. Inc. breaks down the calculation of this financial ratio: “The general rule to keep in mind is that ROI is the ratio produced when all gains from a transaction, less the costs associated with that transaction, are divided by the initial investment.” ROI is about looking deep into the whole picture. Adding automation or robotics for bagging or packing can turn an inefficient and labor-intensive operation into a smooth, cost-efficient process. Optimize performance, boost workplace efficiency, reduce on-site employee injuries, increase output and improve your business’ bottom line with these powerful tips.

Start By Asking Questions

Pay attention to the potential benefits of automation by asking questions ahead of time such as: How long does each task take? How much does it cost your business in salary (including sick pay, overtime, breaks, etc.)? What are other existing costs for performing the tasks you’re looking to automate? Then ask the question if the add-on features, extra tools and auto-capabilities can reproduce (and simplify) that task’s process. These are all valid questions to factor in and below are a few examples of how automating a task can optimize your ROI.

● Automated Example: Labeling Process
Reduce the need for manual labeling, and the costs associated with resources to perform those tasks, by utilizing an automatic label application. Automatic labelers ensure the labels are properly and efficiently placed. Hughes Enterprises, along with ID Technology, offers a wide range of products and services that can satisfy all your product identification requirements such as case label printing applicators, bar coding machines, laser making equipment, peripherals, supplies and service.

● Automated Example: Automatic Bagging
By incorporating an auto bagging system into your packaging operations, your company can immediately start to experience benefits such as increased production, increased consistency, reduced workstations, reduced labor costs, greater accuracy and product safety.

● Automated Example: Case Sealers
Sealing cases using one of our case sealers is faster, provides a better (more consistent) result and is more economical. Using a case sealer also ensures ergonomically correct working conditions allowing for significant reduction in ergonomic stresses including lifting, reaching, bending, twisting, griping and more. For highly demanding customized applications, fully automatic case sealers from 3M feature heavy-duty construction, easy setup, and a simple design for years of trouble-free operation.

Eliminate Hidden Shipping Costs

Both FedEx and UPS began using DIM pricing on all domestic ground orders at the start of 2015. The new dimensional weight pricing, which takes into account package volume rather than the box weight, can greatly impact businesses’ shipping rates with these costly changes. So research your shipping options.

Hughes Enterprises offers you a wide variety of packaging equipment to fill any and all of your shipping and packaging needs – regardless of your company’s size. Order, buy automatic equipment from Hughes. Hughes can help you determine which of our products would work best in your packaging environment. Contact a Hughes Sales Representative for assistance. Hughes, Moving You Forward.