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PACKAGING
LABOUR ISSUES
Labour is not getting any cheaper either, and in many operations packing is still largely a manual process. The minimum wage went up to £11.44 per hour in April, a rise of 9.8 per cent, which significantly adds to costs – not to mention the difficulty in finding available labour, especially at peak periods. According to Totaljobs, the average distribution centre salary (including supervisory roles, and with some large regional variation) is £28,363. Transport too is dearer – fuel and driver
costs of course, but also other elements such as insurance premiums. And not all these increases have been passed through yet – 2023 was a record year for insolvencies among hauliers and carriers as the number of parcels being despatched fell back from its Covid peak. According to postal machinery vendor Pitney Bowes, volumes fell by five per cent to ‘just’ 5.1 billion in 2022 – nonetheless, they forecast a Compound Annual Growth Rate (CAGR) of one per cent per annum to 2028 as ecommerce continues to grow. Other forecasts are more buoyant, anticipating considerable growth in small packages such as medicines.
Figures from ‘Motor Transport’ journal
suggest that while costs per mile for large vehicles were fairly steady in 2023, costs for a 3.5 tonne van, more typical of ‘last mile’ distribution, were up by four per cent. Maximising the cube of the trailer or van would go a long way to shaving costs. We cannot eliminate the need for transit packaging, but we certainly can limit the costs involved, and ‘right sizing’ packaging offers significant savings. Sparck Technologies’ Impack and Everest ranges of automated packing lines help address all three cost areas.
RIGHT-SIZING BOXES This is achieved through advanced 3D scanning technology that measures the volume of the items in an order and calculates the optimum shape and size of box required, which is then automatically cut from the raw material fanfold, creased, erected, sealed, check-weighed and labelled. Right-sizing parcels can reduce the consumption of card by 30 per ent or more, as well as eliminate the need for void fill. When it comes to labour, throughput of up
to 1,100 orders an hour can be achieved with just one or two operators, replacing up to 20 on purely manual packing stations. Automation also alleviates the stress and strain of trying to find suitable, available labour – a particular problem at peak periods. And on transport costs, smaller packages
increase the earning efficiency of vehicles, especially of vans and cars in the ‘last mile’. Internal transport in the warehouse is also made more efficient as fewer totes and cages have to be moved around for a given number of orders. To the extent that right-sizing boxes reduces the number of vehicles to be loaded, this also reduces congestion around loading bays and makes it easier to meet ever tighter intervals between cut-off and despatch. Right-size boxing technology presents an obvious way forward for ecommerce businesses looking to reign in the rising costs of transit packaging. The same technology helps build in capacity for natural growth in the business and adds flexibility for tackling busy seasonal peaks. Automated right-size boxing technology offers the full package.
Sparck Technologies
sparcktechnologies.com
FACTORY&HANDLINGSOLUTIONS | JULY/AUGUST 2024 31
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