There are a few packages I just know what’s inside based on the packaging and possible logos. The Jumpman logo is one of my favorites because it lets me know the box I’m about to open has a piece of basketball history tied to one of the Greatest (basketball players) of All Time (GOAT), Michael Jordan. The box with the lower half of a smile on it lets me know what’s inside must have had 2-day shipping and likely contains something essential, Amazon stuff. The one with red circles forming a target… yep, Target order that was more convenient than needed.
Regardless of what I may order online this year, it will usually come in some type of box that was initially a flat or folded piece of corrugation. This box needs to be formed into something ready to receive my order… preferably before my order has been picked in the warehouse, so my order isn’t just sitting there and not going out the door.
Newsflash: Orders out the door are what make companies money.
Box Building is a Key Piece to Success
When a company starts, its order volume might be low compared to a 2023 Amazon facility. They might have time to manually build most (if not all) of the boxes needed for orders going out the door.
Building boxes remains a key priority as companies grow and order volume increases. However, finding the extra time in a shift or budget for an additional employee to perform these tasks becomes cumbersome. Many companies add a night shift to prep as many boxes as possible for the next day’s run. Others add an employee or two, likely temporary, who can learn the process quickly and assist with peak seasonality. Others still push the limits of their pickers, packers, and manifest operators by adding box-building to their daily duties for as long as they can manage it.
Let’s clarify that building cartons or boxes is no easy task. Okay, it’s not rocket science either, but it’s evident you need a person/people/something to perform this task for your products to go out the door on time and secure revenue.
This is where Standalone Automation may make sense; for this article, that automation is carton erectors. Yet, like with most things, there are several ways to “skin a cat.”
Before Any Automation Purchase
As with all automation efforts, it’s good to understand at least four (4) things to move forward effectively and profitably:
- Budget – money and time you put aside to get to this next phase of automation.
- I say time because every new technology has a learning curve. You shouldn’t jump into a WMS (warehouse management system) without allotting 3-6 months of learning time and debugging (fixing issues).
- I say money because… yes, things cost money.
- Timeframe – this is different from budgeting time for the learning curve. This is how much time until your company expects to go live with said automation. This is day 1 of the technology usually belonging to the company and being expected to run smoothly.
- ROI – it’s not a different spelling for Roy. ROI is an acronym that stands for Return on Investment. This is the amount of time it would take to start turning a profit on the automation (or anything else) your company invested in.
A Simplified ROI Example Using a Carton Erector:
- Let’s say a human operator can build 100 boxes per day, and their full burden rate (total cost for operator’s salary, health benefits, 401k match, etc.) is $60k for one year. If an integrator, like Abel Womack, could provide you with a fully automated carton erector for $180k, your base ROI or max time until you start seeing profit (assuming the fully automated carton erector can do a similar 100 boxes per day) is $180k / $60k = 3 years. This means you could repurpose that one employee when the carton erector arrives. After year 3, you are now SAVING $60k/year for erecting cartons because the automated erector has been paid off.
- However, most carton erectors don’t need lunch breaks, vacation days, or to go home or to a bar after a shift. As such, 100 boxes per day can easily turn to 200, and now your ROI happens twice as fast (half the time), which means your automation turns a profit after 1.5 years!!
- If you lease it for, say, 60 months- your monthly cost at today’s interest rates would be $3,600/month. $60,000 all in for an operator is $5,000/month. So, you would be saving money right from the snap and own the carton erector free and clear after 5 years.
- Data – while last, definitely not least. The numbers are the most accurate representation of how your business is doing. Have as much data as possible on your operations and the areas of interest for automation, as you likely cannot proceed without it. The common types of data can be found in Warehouse Best Practices Parts I.
With the proper understanding of 1 through 4 above, you will have a better idea as to what the next phase of automation looks like. Do you stay manual (using only a human operator) for another year, or go semi-auto, or maybe fully auto?
Semi-Automated Carton Erectors
There are several reasons a semi-automated carton erector makes sense:
- The budget isn’t there yet for a fully automated system, but you need to be more efficient than your current manual carton erector operation allows.
- Your order volume is extremely high, which requires multiple fully automated carton erectors, and you cannot justify that cost yet.
- Your product and order sizes vary enough to justify a large variety of case sizes; this would be on the magnitude of 20+ box sizes that cannot be consolidated, and thus, you need several fully automated carton erectors versus a few semi-automated with human intervention.
For any or a combination of any of the reasons listed, a semi-automated carton erector makes sense. It is automated enough to do repetitive functions, like partial box forming and bottom taping. Still, it requires a human operator for the intricate folds and bends or pushing through a separate bottom taper, or manually adjusting knobs on the erector for the different box sizes.
Fully Automated Carton Erector
A fancy new, fully automated toy will always pique interest. Most fully automated erectors can handle a multitude of box sizes, but the range of box sizes also can cause a fully automated system to perform more slowly than your order volume might allow.
Nevertheless, being able to handle a wide range of box sizes is not the same as being able to handle ALL box sizes. Do you ever receive an order from an online retailer in a box that’s way too big for the order? That’s what happens when a company looks to consolidate the number of box sizes they carry for whatever reason, usually to save cost. Now, your newly ordered glasses are shaking around in a box that fits a TV monitor, or there’s enough dunnage (peanuts, air pillows, etc.) inside the box to fill your closet floor and leave the perfect mess for all the extra time you don’t have.
For this reason, the industry has come up with a solution.
Carton or Box Builder/Maker
I feel there should be fireworks shooting through the air or a last round in a boxing match theme song playing…
Anyway, I feel “fully automated” is a misnomer when it comes to carton erectors. I mean… yes, it should not need human operator intervention to erect a box. However, as we mentioned, it can’t handle ALL sizes or needs to stick to the box sizes it’s fed – fully automated carton erectors work from a magazine(s) that’s loaded with specifically-sized cartons, so the erector can only erect the sizes provided. While this is fully automated, it’s not fully capable, which to me means we need to remove the word fully.
But… a box builder is exactly that. It builds boxes! (I’m way too excited if you can’t tell)
An operator or robot loads a roll of corrugate into this machine, the operator presses a few buttons to ensure the machine understands where information will come from, and then the machine communicates with your ERP/WMS (software) to understand the box needed in advance of receiving the products. The box builder then… builds the exact box size needed for the order!
After this point, the operator or carton sealer and label applicator do their job, and the order is ready to head out to the customer.
How to Know Which Solution is Next for Your Company
If you’d prefer to stay as hands-off as possible, there are companies that can help with these initial processes. Abel Womack has a great Lean Management Consulting team specializing in ensuring your company performs as efficiently as possible. You also can contact our Automation team to assist with automation-specific consulting and uncover the best next step for your operations.
Abel Womack has a history of relationship building and service and experience automating facilities new to automation as well as those several phases of automation into their long-term plans. Contact us if you want to explore your options.
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