Print and Apply (P&A or PandA) systems, where labels are printed and applied to cartons automatically as they move down a conveyor, have become a standard feature in higher-volume distribution environments. But the fact that it is common isn’t a good enough reason to invest $50,000 or more in new automation.
Let’s dive into a breakdown of what a P&A system actually costs and where the return on investment stems from.
What’s Included in a P&A Solution
A complete Print and Apply implementation has three main cost components: hardware, software, and integration.
Hardware includes the print engine (Zebra and Sato are two of the most common) and the applicator mechanism. The hardware alone can run anywhere from $30,000 to $65,000 depending on label resolution, label size, and application requirements.
Software is always underestimated. Your print engine needs to communicate reliably with your Warehouse Management System (WMS) or ERP. If your WMS isn’t designed for real-time hardware interaction, you’ll likely need a Warehouse Control System (WCS) to act as a handshake between the two. This is a critical piece that’s easy to overlook from an end-user perspective. Make sure you’ve done your homework here to understand your risk.
Integration and installation make up the third cost bucket, and the one most likely to surprise customers. Adding a P&A into an existing system is almost always more expensive than including it as part of a full system design from the start. Budget for software engineer hours, controls work, and testing time, but more importantly, don’t forget to include a conversation with whoever installed your existing automation. They will likely need to be involved as well and may add unexpected costs if you don’t already have a support contract.
Identifying the ROI
Labor savings are usually the primary driver. A fully burdened employee (salary plus benefits, employer taxes, etc.) at $25/hour typically costs a company closer to $35/hour in real terms, roughly $70,000 per year for a single worker. A P&A system can run multiple shifts without overtime premiums, and it can process cartons faster and more consistently than a manual labeler, easily hitting rates in the 15-20 cartons per minute range. If your current process requires one or more people dedicated to label application, the ROI can be extremely fast. The catch is that typically manual operations are not set up to easily drop in automation like printers, scales and other seemingly simple devices. So…
Is Print and Apply Right for You?
Most companies target a payback period of 1-2 years or less. To get there with a P&A system, you generally need meaningful labor displacement or have a throughput constraint that’s currently limiting your growth. If neither of those apply, the ROI case is tough to make.
Start with your current labor cost in the labeling process, your throughput targets, and whether your WMS can support the integration. Get a quote from a reliable integrator and see where you stand. If you’d like help working through the ROI analysis, get in touch. We have that conversation regularly with operations teams evaluating their first big foray into automation, expanding their existing line or re-tooling an entire warehouse. We can also recommend regional integration partners that we have worked with over our long tenure in the industry!
