Pet Food Processing - March 2023 - 65

OPERATIONS
RATEOF RETURN
T
By Jennifer Barnett Fox | petfoodprocessing@sosland.com
The calculation of Return on Investment (ROI) has
changed dramatically over the last couple of years.
Beyond figuring pure financial costs and calculations,
ROI must also meet the technical demands of an application
currently and in the future. Jeff Arthur, technical
sales director, Allpax, Covington, La., outlines this as a
solution that provides for the most efficient operation
from a manpower, utilities and maintenance standpoint.
Contemplating equipment purchases demands strong
partnerships and clear intent. Because each purchase
will impact a number of departments, every ROI discussion
should include a well-rounded group of stakeholders.
This could include engineering, maintenance,
production, regulatory, food safety, QA and QC, HR,
procurement, sales and marketing - each providing insight
to ensure all aspects are covered.
With the in-house team in place, it's time to identify
the best supplier partner to ensure the right support will
be there when it's needed. Supplier partners must be
large enough, capable of working through supply chain
challenges, and have the ability to provide good service
to help plant operations achieve ROI expectations.
Coming to the table
The variability of labor and raw material costs is one
point on which all interested parties often agree. As raw
material costs increase, so does the importance of reducing
yield loss. As labor rates rise, manufacturers want the
ability to do the same amount of work with fewer people,
triggering the need for more automation. Investing
in automation could reduce the risk of operator failure,
but maintainability over time with parts availability or
cost, labor needs, and original equipment manufacturer
(OEM) support should also be considered.
Arthur recommended processors consider automated
solutions to minimize the reliance on operator labor and
minimize downtime. Brian Gifford, PE, mechanical engineer,
CRB, St. Louis, echoed this by saying the more
operator intervention required - especially with new
operators - the more susceptible a company is to loss in
yield or quality failures that can equal loss in product. In
plants where wages must rise to attract and retain talent,
manufacturers often consider automation to be a strong
ROI factor. This can be a double-edged sword, however,
because as automation increases, the risk of mechaniwww.petfoodprocessing.net
| March 2023 | PET FOOD PROCESSING 65
Understanding how
raw material and labor
costs impact specific
processes can help
processors determine
which investments will
pay off in the long run.
©Leonidkos - stock.adobe.com
People, processes, future needs and aspirations
should all be a part of the ROI equation.

http://www.petfoodprocessing.net

Pet Food Processing - March 2023

Table of Contents for the Digital Edition of Pet Food Processing - March 2023

Pet Food Processing - March 2023 - Intro
Pet Food Processing - March 2023 - 1
Pet Food Processing - March 2023 - 2
Pet Food Processing - March 2023 - 3
Pet Food Processing - March 2023 - 4
Pet Food Processing - March 2023 - 5
Pet Food Processing - March 2023 - 6
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