Page 3 - Snap Equipment Release Note

Summary & Recommendation
The supply of A4 pre-cut labels is a growing market sector in Australia and this Equipment Release Note (ERN) examines the Graphtec CE7000 with the F-Mark 2 cutter for the manufacture of labels in-house eliminating the need to purchase A4 pre-cut label stock. This equipment was selected as it is already in use by several Snap Centres with promising results and is ideal for jobbing work most Centres encounter but not suitable for high volume continuous production output. The benefits of the equipment include:
• Reduced stock holdings (flat sheets only required) no need to carry pre-cut labels.
• Ability to cut any shape on demand using a cutting profile.
• Faster response time for Customer orders. (assumed Centre stocks flat sheet on the
shelf).
• Reduced waste (print and cut only as required for each job eliminating unused sheets).
• Will complement our E-commerce strategy.
• Savings based on monthly average volumes are greatest when the mix of jobs are
short run with longer run jobs offering the least savings.
The table below is an average saving that can be achieved when comparing the method of printing and cutting the pre-cut labels on demand in Centre using the Graphtec CE7000 cutter versus printing directly onto pre-cut A4 label sheets from a label supplier.
Note: Pre-cut labels are supplied in small packs or boxes and discounts apply based on the quantity purchased. The table calculates the savings based on those discounted volume breaks and typical job size. (refer to breakeven analysis for more detail and assumptions used).
An investment in this equipment is the responsibility of each Centre. This information serves only as a guide on the number of sheets required on average per month to breakeven when comparing to the alternative of using pre-cut A4 sheets. The number of sheets will depend on the mix of work being produced. In simple terms if I was purchasing A4 pre-cut sheets and I was considering purchasing this equipment how many sheets do I need to do each month for the cost to be the same.
Our recommended supplier for the equipment may change from time to time and is not included in this document although costings are based on the current preferred supplier price from Starleaton. Refer to separate advice on preferred supplier.
Savings Per Sheet - based on 2000 A4 sheets a month
Average Cut
$ 1.13
78%
$ 0.16
33%
$ 0.10
23%
$ 0.05
14%
Job Size
20 A4 sheets or less
21-300 A4 sheets
301-900 A4 sheets
901+ A4 Sheets
Job Size
20 A4 Sheets or Less
21-300 A4 Sheets
301-900 A4 Sheets
901+ A4 Sheets
Average number of Pre-Cut A4 Sheets per month based on job size to break even
170
806
1037
1351
For the love of print