Automatic coding in beverage packaging

Matthew Spreckley, European Service Manager, Allen Coding UK provides insight into application of manual and automatic coding for beverage brands.

Q: When should a beverage brand switch from manual to automatic coding?

A: To understand when it makes financial sense to migrate from manual to automatic coding it is essential to understand all cost inputs to ensure a completely accurate comparison. We can provide information on the "sweet spot" where automatic coding starts to become more cost-effective than manual coding.  Of course the numbers vary for primary and secondary packaging and you will see below we have provided a table on comparative costs for each.

Primary Packaging:

To compile this table, we assumed for that the current method to apply variable information was table top printing directly onto the label before applying.  The automated coding technology costs include the up-front capital equipment purchase (divided by 288 days of production), daily consumables (ink and solvent for CIJ), and parts/service cost. You can see that the cross over point is roughly 2000 coded units for CIJ and 6000 coded units for Laser Coding.

Secondary Packaging

In our secondary packaging cost comparison study, the coding technology costs include the upfront capital equipment purchase (divided by 365 days); daily consumables of direct thermal labels or ink jet ink, daily cost of factory space, electricity, and parts/ service. While many label applicators require shop air we assumed here an “electronic” label applicator without need for expensive shop air. Our estimates indicate a crossover point of 3000—6000 cases / day the labor costs of manually applying labels becomes more than the total daily cost of the automated coding technologies.

Q: Once a beverage brand has made the decision to move to automated coding- how can they select the technology best suited to their needs?

A: See pro/con tables provided for both primary and secondary packaging.

For further information please do not hesitate to reach out and we will be happy to help: www.allencoding.com/contact-service/contact-form/