Cash Flows, Too: Evaluating Your Carton Flow Investment

Purchasing material handling equipment for your facility is no small task. If you’re serious about stepping up efficiency and reducing the operating costs of your facility, outfitting your operation for success is an in-depth process. When it comes to order picking operations, chances are that you’re looking to increase pick rates, pick accuracy, and space utilization throughout your entire facility. This means you’re dealing with dozens-if not hundreds- of bays, workstations, or pick lines. In order to implement the right solutions for your operation, you must first be able to evaluate what value those solutions bring to your facility.

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In the world of order picking, it’s all about cost reduction. Reducing operating costs can be done in a number of ways. Reducing the distance traveled between picks, reducing the bending and reaching required by the pick, and reducing the need to reprofile your facility are all great ways to drive down your operating costs. However, many other factors should be considered when choosing the right material handling solution, including:
Maintenance requirements
Additional system-related components
Ease of assembly and installation
Reliability and durability
Training requirements
Daily operating cost of the material handling system.

At UNEX, we design our products to meet all these requirements. We ensure that our solutions can pass both a payback period analysis and a return on investment analysis. Payback period analysis determines the length of time required to make back the money spent on the project. It goes without saying that in order to choose the most effective solution for your operation, you need something that provides the shortest payback period possible. Although payback periods will vary based on size and scope of the project, UNEX is proud to offer solutions that average a six month payback period.

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A return on investment analysis will determine the benefits provided over the entire lifetime of the purchase. It can be determined dividing the net benefits of the purchase by the total cost of the operation.  This means you need a solution that’s going to bump up efficiency for the long-term in order to get your money’s worth. While many UNEX solutions come along with a seven year warranty, it’s not uncommon for our product lines to far outlive that warranty and further maximize your ROI.

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While it’s crucial for any material handling solution purchase to pass both a payback period and ROI analysis, ROI can be effected by many different variables over time-marketplace changes, shifting consumer habits, and operational changes can and most likely will change in the coming months and years. Therefore, it’s important to pick a realistic, closed timeline in which to evaluate your purchases.

UNEX will work with you to calculate a desired payback period and ROI, and will design solutions that exceed those goals. We ensure that our solutions are easy to assemble and install, require little to no maintenance, and require absolutely no training to be used efficiently. We’re happy to work with you in order to guarantee that our solutions exceed your expectations and take your operation to the next level.

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UNEX Manufacturing, Inc.
691 New Hampshire Avenue
Lakewood, NJ 08701

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