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Pre-Investment Checklist for Packaging Machinery

Updated: Nov 28, 2019

The significance of packaging is only growing with every passing day. Packaging is not only protection. It is much more. It is marketing. It is customer acquisition. It is standing out among competition. It is making consumers come back. It is narrating your story.

Your packaging gives an opportunity to consumers to fall in love at first sight with your products.

For this to effectively happen, the right kind of packaging machinery is a must. Each product type will have its unique packaging requirements. Depending on this, the type of packaging machinery should be determined. A variety of commonly available packaging machines are Filling Machines, Capping Machines, Labelling Machines, Carton Packaging Machinery, etc. These traditional packaging machines can be further customized to specific packaging needs. An expert opinion can help match your product's needs to specific packaging machinery. VYNXPACK is well equipped with the necessary knowledge to assess your packaging needs and accordingly recommend the type of packaging machinery that will best suit your needs.

Purchasing packaging machinery requires careful consideration of not only internal factors, such as budgetary allocations and minimum requirements, but also external factors and developments taking place in the packaging sector. These external factors include market conditions such as demand for the products and the level of competition.

Here is a list of determinants that are significant and must be considered before investing in packaging machinery:

1. Budgetary Allocation & ROI

Consider the available budget and accordingly inquire for suppliers that suit your capital availability. Once the list of suppliers is ready, compare their prices and select the one that best suits the investment budget. While comparing prices, keep in mind the quality of the output.

Determining the return on investment (ROI) along with budget will enable you to predict the level of profits that the machine will yield.

The ROI of the machine can be calculated with a simple formula-

Further, a cost-benefit analysis can be conducted to measure the costs and gains of the machine, in figures. Here’s an example to understand this:

A fully automatic packaging machine costs ₹10,00,000 (including installation charges). These costs are then compared with the overall gains/benefits such as savings on labour salaries for the year, reduced wastage, saving on overhead costs, increase in the number of units packaged, increase in sales, etc. If the total benefits are more than the investment costs incurred, then purchasing the machine is feasible.

2. Vendor Credibility

From the prepared list of vendors that fit the budget, make sure to verify which vendors are considered reliable in the market. Credible vendors that have a goodwill in the market will ensure timely delivery of the machine and other servicing benefits.

Before finalizing the vendor for purchasing the machine, ask for a sample of the packaging. This helps to gauge the quality and determine if the machine will be worth the investment.

3. Labour Requirements

Understand the kind of workers that machine operations will require. Manual, semi-automatic, as well as automatic machines, have certain prerequisites of both skilled and unskilled labour. Assess the available workforce to see if they match the needed labour specifications. When the existing workforce is unfit for managing the machine operations, two approaches can be adopted:

a) Train the existing workforce to equip them with the technical know-how required to operate the packaging machine

b) Hire skilled workers that fit the desired specifications

Training and hiring costs must also be considered as a part of the machine costs.

It is worth noting here that the prevailing economic slowdown has made it difficult for companies to keep up with labour and operating costs. Shifting to packaging automation not only helps reduce costs but also helps to achieve proficiency in the overall packaging process.

4. Waste Management

A packaging machine will most definitely generate some kind of waste. A plan for waste disposal must be put in place to comply with government norms of pollution and waste removal. This should be considered at the time of making packaging machinery purchase decisions itself. Initially, the focus must be on waste reduction along with on waste disposal. The waste can also be segregated to determine which waste will be reusable at some stage in the packaging process.

5. Future Business Plans

While choosing the type of packaging machinery, future business plans must also be kept in mind. If the company intends to continue in a particular type of packaging business for the next few years, then investing in a customized packaging machinery is a good idea. On the other hand, if a company already has plans to diversify its business, it can opt for multi-purpose packaging equipment even though it may cost slightly more in the short term.

In Conclusion

The above is a compilation of important factors that provides a framework to make informed packaging investment decisions. The decision criteria for purchasing packaging equipment may vary from one packaging sector to another. Every industry has unique requirements that need to be considered while deciding to purchase packaging machinery. Every organization too has specific requirements and resources to undertake packaging. Another option that companies should evaluate is outsourcing the entire packaging itself.

To know more on what packaging machinery will best suit your needs, write to us at

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