Overhead expenses are what it costs to run a business, including salaries, pensions, nat insurance, rent, rates, general insurances, gas, electric, water, maintenance and more … but let’s ignore all those and consider just the wages element so that the following savings are greatly understated.
The current minimum national living wage is £9.50/hr ie. 15.8 pence/minute .It takes on average 3-4 minutes to manually double strap a pallet over the course of a shift i.e.minimum labour cost only – no other overhead included - is 47.4 – 63.2 pence per pallet. Lets say an average cost of 55 pence per pallet for labour..
If 10 pallets a day are strapped x 5 days x 50 weeks annual cost would be £1375 p.a
If 20 pallets a day are strapped x 5 days x 50 weeks annual cost would be £2750 p.a
If 30 pallets a day are strapped x 5 days x 50 weeks annual cost would be £4125 p.a
If 50 pallets a day are strapped x 5 days x 50 weeks annual cost would be £ 6875p.a
If 100 pallets a day are strapped x 5 days x 50 weeks annual cost would be £13750 p.a
Using a mobile strap poka pallets can be strapped in 40 seconds but for the purpose of this exercise lets assume its 50 seconds i.e. 13.16 pence /pallet
The above costs now become:
If 10 pallets a day are strapped x 5 days x 50 weeks annual cost would be £340 p.a saving £1035 p.a
If 20 pallets a day are strapped x 5 days x 50 weeks annual cost would be £658 p.a saving £2092 p.a
If 30 pallets a day are strapped x 5 days x 50 weeks annual cost would be £987 p.a saving £3138 p.a
If 50 pallets a day are strapped x 5 days x 50 weeks annual cost would be £1645p.a saving £5230 p.a
If 100 pallets a day are strapped x 5 days x 50 weeks annual cost would be £3290 p.a saving £10460 pa
The projected savings appear impressive but bear in mind in reality these can be doubled because only minimum wage is accounted for – no other overhead.
