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Transforming High-Changeover Personal Care Manufacturing Sites with Turn-Key AI Palletizing Solution

January 20, 2025Cosmetics Manufacturing, SKU Adaptability, Palletizing, Robots as a Service
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Personal Care Contract-Based Operations Are Unique Manufacturing Environments

In many manufacturing sectors, standardized products are produced over long, steady production cycles. Personal care co-manufacturing and co-packing, however, stand apart as highly dynamic operations. These environments are characterized by:

  1. Very high SKU variability
  2. Short-term customer contracts
  3. Rapid product lifecycle changes

Cosmetic companies face constant pressure to adapt to shifting consumer trends and seasonal demands. As product catalogs, packaging types, and formulations expand, these high-changeover environments demand efficiency through flexibility, scalability, and speed.

Frequent changeovers create challenges that require highly specialized equipment. To maintain operational efficiency in such settings, adaptable automation is essential.

AI Palletizing Machines: Built for Flexibility and High-Changeover Environments

Historically, standard robotic palletizers have struggled to meet the demands of cosmetic contract manufacturing. These operations often involve handling an extensive variety of SKUs, with products coming in numerous sizes, scents, and packaging formats. High changeover rates and diverse product profiles make it difficult to justify traditional robotic palletizing systems.

AI palletizers, however, solve these challenges by offering:

  1. SKU Flexibility: With advanced vision software, AI palletizing cobots can adapt seamlessly to different product types and packaging configurations. Their vision systems identify product dimensions and adjust to various packaging sizes and shapes with minimal downtime. This capability ensures smooth transitions, even during frequent product changeovers. Whether managing 10 SKUs or 10,000, AI cobot palletizers handle the complexity with ease.
  2. High ROI in Contract Manufacturing: The adaptability of AI palletizers makes them far more cost-effective than traditional systems. They eliminate the need for specialized labor or frequent reprogramming, offering turn-key solutions that require no additional training or expertise.

Why RaaS Models Are Perfect for Managing Demand Fluctuations and Addressing Infrastructure Limitations in Personal Care Manufacturing

Managing production capacity amid seasonal and cyclical demand fluctuations is a significant challenge for personal care contract manufacturers. Traditional solutions often require large capital investments, which may be impractical or unsustainable over time.

AI palletizing robots, offered through a Robots-as-a-Service (RaaS) model, provide a practical alternative. This approach allows companies to scale operations while avoiding the financial strain associated with traditional infrastructure upgrades.

What Is a Robots-as-a-Service Model?

The Robots-as-a-Service pricing model enables manufacturers to pay a standard hourly rate for robotic labor. Instead of purchasing robots outright, companies rent them and pay only for the time they’re utilized. This model effectively removes the capital expense associated with automation by enabling businesses to leverage their operational budgets for automation needs. To learn more about Tutor’s specific Robots-as-a-Service pricing model, click here.

How the Robots-as-a-Service (RaaS) Model Offers Cosmetic Manufacturers a Critical Advantage

  1. Flexible Capacity Expansion: With RaaS, executives can incrementally scale operations without committing to large upfront investments. Deploying additional AI palletizing robots during demand peaks ensures production lines stay efficient while keeping capital expenditure low.
  2. Avoiding Overcapacity: Traditional infrastructure investments often risk underutilization during slower periods. RaaS eliminates this issue by allowing manufacturers to scale robot fleets up or down as needed. Capacity remains aligned with demand—whether it’s peak season or a quieter period.
  3. Reduced Overhead: By avoiding long-term maintenance contracts, repair costs, or expensive system upgrades, manufacturers can redirect resources toward innovation, process improvements, or market expansion.
  4. Cost Control: The RaaS model allows manufacturers to pay only for the hours their robots are active. This flexible pricing structure removes the need for hefty upfront investments, helping businesses better manage cash flow while ensuring production lines meet current demand.
  5. Test New Lines of Business: For executives exploring new markets or products, RaaS offers an affordable way to test demand. Much like an on-demand labeling machine enables testing new packaging without large-scale investment, RaaS allows manufacturers to scale back quickly if a new line underperforms, avoiding underutilized assets.

By adopting RaaS, personal care manufacturers can address infrastructure challenges while maintaining operational and financial agility. This approach supports sustainable growth by enabling on-demand capacity expansion and reducing the risks tied to traditional investments.

Case Study: Tutor Palletizers’ Success at a Cosmetics Co-Manufacturing Site

Tutor Intelligence demonstrated the impact of AI cobot palletizers in 2024 by deploying nine advanced cobots to a high-volume, high-changeover cosmetics contract manufacturing site in Omaha.

In just four months, these systems processed over 10 million pounds of freight and handled 237 unique SKUs. Each robot averaged 2.95 SKU transitions per week, showcasing their unparalleled flexibility in a dynamic production setting.

Labor shortages in the region had previously challenged the site’s operations. Tutor’s cobots resolved this issue while delivering an impressive return on investment—achieved in just 1.5 days. This deployment transformed the facility into Omaha’s most technologically advanced site.

Additionally, the intuitive user interface of the cobots ensured that line workers quickly adapted to the new automation with minimal training. The site achieved its most profitable month to date, thanks to the scalability and efficiency enabled by Tutor’s palletizers.

Conclusion

As the personal care industry continues to grow, contract manufacturing operations face increasing pressure to meet evolving demands. AI palletizing machines offer a game-changing solution, combining flexibility, cost efficiency, and scalability. For manufacturers, embracing AI-driven automation is not just a strategic advantage—it’s a necessity to remain competitive in a fast-paced market.

Want to learn more?

Reach out to our expert automation engineers to discuss automating your facility with Tutor Intelligence. We're here to help you optimize your operations and boost productivity.