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A regional grocery chain was experiencing higher operating costs in their meat backroom and pre-pack operations. The supermarket store format averaged $60,000 and approximately 12,000 packs per week in fresh meat and seafood. The wrapping and labeling equipment in the backroom was over 10 years old with downtime and service costs becoming an issue.
With automated wrapping and labeling equipment down, department leaders had to resort to hand-wrap stations which can take 4x to 5x the labor time and cost while disrupting the production flow of prepared meats from cutting and grading. Meat supervisors were experiencing more stock-outs in the fresh meat case or were increasing their inventory of primals and over-producing fresh packs.
The retailer began evaluating new generation wrapping and labeling alternatives to replace aging machines and standardize on equipment in new store openings. New store formats had approximately half the floor space allocated for meat operations, so the equipment size was becoming an increasing factor.
