Total Cost of Ownership: Uncovering Labor Savings Through Smart Packaging Decisions

Packaging isn’t just a necessary step in your supply chain–it directly impacts operational efficiency, shipping, storage, customer satisfaction, and even compliance. 

But while choosing cheaper materials and equipment may seem like the right solution, both can erode your margins. 

The Most Common Culprits of Hidden Labor Costs in Packaging Operations

• Manual touchpoints add up: Each time a packer stops to manually fill or hand-tear material, it increases handling time and labor needs–as well as your payroll budget. 

• Inefficient workflows create bottlenecks: Poorly designed packaging stations create friction in fulfillment, increasing downtime and labor requirements. A partner who understands packaging integration can make a measurable difference here.

• A lack of safety and ergonomics impact downtime: Poorly designed equipment or heavy materials increases the risk of strain and injury. That leads to higher claims, lost time, absenteeism and the cost of replacement labor–all of which hit your labor budget. 

• Complex training and turnover slow you down: Complicated packaging methods require more in-depth training—reducing productivity and increasing inconsistent application that can impact product performance. Frequent employee turnover compounds these costs. 

• Rework from product damage multiplies labor: Product damage during transit or fulfillment creates extra work. Whether it’s repacking, managing returns, or handling customer service claims, damaged goods drive up labor costs. 

How Automation Helps Control Labor Costs 

Automation in packaging extends beyond full robotic systems. It includes a range of tools and technologies that reduce labor-intensive tasks and boost overall packaging efficiency.

• Boost throughput: Automated systems accelerate the packaging process and increase packages processed per hour. For example, automated mailing & bagging can be up to 4x faster than manual processes, reducing the cost per pack.
• Drive consistency and quality: Automation minimizes human error and ensures uniform packaging application, cutting down on returns and damage. The fewer mistakes, the less rework–and the lower your labor costs. 
• Start small and scale up: Automation can be implemented incrementally, allowing businesses to adapt and grow. Even small-scale automation can yield substantial improvements.
• Focus people on high-value work: Let machines handle repetitive tasks so your workforce can focus on tasks that add higher strategic value–solving problems, improving operations, and enhancing the customer experience.
• Measure what matters: Track performance metrics to identify labor efficiencies and operational impact using intelligent , automated packaging equipment that integrates with WMS and supports remote diagnostics.

Workflow and Standard Operating Procedures (SOPs): The Unsung Heroes of Labor Efficiency 

Standardizing and simplifying your packaging processes can have just as much impact as automation.

• Clear SOPs reduce variability: When every packer follows the same efficient process, training becomes easier, mistakes go down, and productivity goes up. Tools like the Maxwell Intelligent Interface deliver preset packaging via barcode scan and provide on-screen visual training to support all skill levels.
• Streamlined stations save steps: Simplifying workflows reduces unnecessary movement, and speeds up fulfillment. Even small steps in layout or material access can add up to major time savings. 
• Safety-first equipment keeps teams moving: Easy-to-use, low-maintenance equipment with safety features helps prevent the risk of injury, reducing downtime and claims. The EasyPack Quantum on-demand paper line offers maximum packer safety with a bladeless auto-tear design. Its adjustable head enhances operator comfort and productivity through reduced motion, quick reorientation and easy loading.

Bottom Line: Hidden Labor Costs Are Avoidable 

When packaging processes are manual, inconsistent, or poorly integrated, labor costs rise, and often go unnoticed. 

By cutting manual steps, improving consistency, and simplifying training, companies can save time and money across their operations. These changes also support better output, fewer errors, and a smoother path to scaling fulfillment. That’s the power of a total cost of ownership mindset. You don’t just save on packaging–you unlock more value from your total operation. 

Want to see how Pregis can help you optimize your packaging strategy? Let’s talk.