What distinguishes a successful packaging company from one that struggles day in and day out to maintain profit margins and productivity quotas?
- 1. Asset Investment Burdens – Upkeep for Old Machines
Too many companies keep sinking money into old pieces of machinery (read about the sunk cost fallacy if you’re into the psychology behind this). They’re using legacy equipment that needs a lot of maintenance on a monthly or annual basis. They keep shutting down lines to replace parts or fix machines when they should be producing. Meanwhile, that maintenance and repair money is taking a chunk out of their bottom line.
- 2. Lack of Productivity from New Technology
Packaging companies are also leaving money on the table when they don’t take advantage of opportunities to upgrade to newer, faster and more sophisticated machines. New technology offers more productivity and better capacity. It offers more transparency and easier learning processes. So it’s a no-brainer for boosting productivity and increasing profits.