David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When something needs to be moved or stored in or around the DC, most people grab a box—a corrugated carton. A mainstay of shipping operations everywhere, the familiar six-sided carton can be used for an endless variety of applications. But it's not necessarily the best choice. For all its virtues, the corrugated cardboard box has drawbacks too: it's an easy target for thieves, it's easily pierced or crushed, it's prone to snagging when used in automated handling operations, it requires disposal after use. That's why more and more operations are bypassing cardboard for an alternative that has none of these shortcomings: the returnable plastic container.
It's not hard to understand why returnables are making headway in the container market. Most commonly made of plastic (though they can be made of wood or metal), returnable containers trump cardboard in a number of ways, their advocates say: They reduce purchasing and disposal costs. They offer a higher level of security. They offer better ergonomics. And they do a better job of cubing out space.
Better still, they're versatile. Returnables come in designs and sizes to fit just about any application. Large bulk containers, for example, can be used for transporting large items (or a multitude of small items) or for storing products in racks. They're typically designed with fork entries to allow easy transport via lift trucks or pallet jacks. And many times these containers offer hinged side doors that, when lowered, allow easy access to the items inside. Many bulk containers also come with collapsible sidewalls so that they can be easily stored or transported when empty.
Smaller containers are typically designed so that when placed side by side, they match the footprint of a standard 40- by 48-inch pallet. They offer a wide range of stacking configurations, and most are designed with top and bottom grooves to facilitate stacking into solid cubes that can max out available space in storage racks or on trucks. Top covers—and sometimes straps—hold the load together during transit for a secure ride.
Safe and secure
Returnables easily outperform their corrugated counterparts when it comes to product protection, according to plastic container manufacturers. Most returnable containers used for shipping offer hinged lids to help protect the products placed inside. Typically, they're also designed to accommodate security cable ties that loop through the lid and a hole in the container's sidewall. This locks the lid in place and discourages theft of the contents. A broken tie provides an easy method of identifying containers that may have been breached. And because they are made of sturdy plastic, which resists piercing or crumpling, these containers also tend to protect products better than corrugated cartons can.
Most returnable containers are also designed to stack one on top of another to save floor space. Turn one container 180 degrees in the opposite direction and it can be inserted into the empty tote below it for dense stacking. This "nesting" feature allows a large number of empty totes to occupy a small space in storage racks or for transit back to the facility.
Because plastic containers come in uniform sizes, they're ideal for use with automated material handling systems. They're also the container of choice for automated mini-load systems and carousels because, unlike corrugated cartons, they have no rough edges that can snag when used in automated systems. Further, they can be easily transported on conveyors and sorting systems.
Plastic containers are also designed to work well with the latest in inventory control technology. Most are designed with special areas on their outside panels to accommodate bar-code labels and RFID tags. These areas are recessed so that conveyors or other material handling equipment will not tear the tags as they move through the distribution operations.
Easy on the back
Plastic returnable containers also offer
ergonomic advantages over cardboard cartons, according to plastic crate manufacturers. Easy-to-grip handles on the plastic containers' ends make them much easier to lift and move than corrugated cartons. And their uniform size helps ensure that loads don't exceed weight limits. Many companies will designate specific sizes of containers for certain classes of products, knowing exactly how many items can be picked into the containers before they reach a maximum threshold for safe lifting.
Since plastic containers can be made in virtually any color, some facilities designate certain colors to represent the various functions within the distribution facility. Red may be reserved for picking tasks, while a green container may signify that the items inside are destined for a value-added service station.
Taking advantage of this, some of the more sophisticated conveyor systems have sensors built in that are able to distinguish colors. Pickers completing a wave of orders may pick the last products into, say, a yellow container to signal that this completes the wave. Once the container is sent off to the sorting equipment, the sensor identifies the yellow tote as the last tote to be diverted to a particular spur line.
Closing the loop
By their very nature, plastic containers must be reused again to be cost effective. Because of this, most reusable containers in use at distribution centers are used exclusively within the facilities. But that's not always the case. Some companies have developed distribution systems that call for their containers to be shipped out to stores and select customers. These, however, must have some mechanism for returning the containers to the distribution center for reuse. Companies operating such closed-loop systems often ship the containers on their own dedicated fleet (see sidebar). Filled totes are dropped off at delivery and empties are gathered for the return trip back to the DC.
Pooled container programs offer an alternative for those companies wishing to use reusable containers but that don't operate under a closed-loop distribution model. With pooled programs, the containers are owned by the pooling company. The pooler takes responsibility for retrieving the empty containers, washing them and delivering fresh empties to the distribution centers.
The best thing about returnable containers is that they can be used over and over again, making them extremely cost effective.When they do reach the end of their lives following hundreds of trips, they can be recycled easily, which also makes them a sound environmental choice.
urban legends
For Sneaker Villa, a chain of a dozen stores featuring the latest hip-hop clothing and shoes designed for the urban lifestyle, corrugated boxes are so yesterday. Last year, the Philadelphia-area chain bought 500 reusable plastic containers from Buckhorn to replace the corrugated boxes it was using to ship split-case orders of clothing and accessories to its stores. The company was so pleased with the totes' performance that it bought another 500 this summer.
Today, jeans, sweatsuits, jerseys, belts and other accessories (everything but the shoes) are picked into plastic containers at the company's Wyomissing, Pa., distribution center, before being loaded onto Sneaker Villa's own fleet of trucks for transport to stores. About 500 totes ship weekly, with most stores receiving deliveries two to four times during the week. Each store delivery includes anywhere from 15 to 50 containers, depending on store volumes and the selling season.
Once emptied, the containers can be nested inside each other to save space when stacked in the stores' backrooms. The empties are picked up for the return trip back to the DC upon the next delivery.
The durable totes, each measuring 27 by 17 by 12 inches, are uniform in size, which makes them easy to handle. That uniform size also provides much more stable stacking for transit than cardboard cartons can and makes it easier for managers to calculate payloads. "They cube out the pallet and allow us to easily know how many containers can fill a truck," explains Brandon Naples, warehouse manager for Sneaker Villa.
The plastic totes easily outperform cardboard boxes when it comes to product protection. And the attached-lid totes offer greater security than the corrugated boxes they replaced. Sneaker Villa uses cable ties to seal the lid of each container before it leaves the DC, so it can tell at a glance if a container has been opened.
The plastic containers offer other advantages as well. For example, the containers feature textured side panels that make it easy for workers to remove old shipping labels before new ones are applied. They also feature ergonomic handles that make the totes easy to lift and carry, reducing the potential for injuries. "We have not had anyone hurt lifting them," says Naples. "The handles make them so much easier to move."
the case for cardboard
For every company like Sneaker Villa that's embracing the plastic returnable container, there are several others that are sticking
with the plain old cardboard box. For all the recent interest in returnables, corrugated boxes, with their ready availability and low cost, still far outsell their plastic counterparts.
That's not to imply that users only choose cardboard as a matter of convenience. Corrugated boxes offer a number of benefits, according to the Corrugated Packaging Council, a Rolling Meadows, Ill.-based advocacy group. On its Web site (cpc.corrugated.org), the council provides an extensive list of the advantages of using corrugated cartons, including the following:
Low shipping costs. With their light weight, high stacking strength and space-efficient packing geometry, corrugated cartons are cheaper to ship than plastic crates, the council claims. And unlike companies using plastic containers, those who choose cardboard avoid the expense of returning the containers, cleaning the crates, tracking their whereabouts in the distribution system, and modifying existing packing methods and equipment to accommodate the new shipping container.
High level of product protection. The fluted construction of a corrugated box offers superior product protection through built-in air cushioning, according to the council. If needed, cartons can be customized to provide extra protection for heavy, fragile or hazardous materials.
Ease of customization. Today's computer-designed corrugated boxes can be customized to accommodate an ideal pack count for a particular commodity. In addition, corrugated packaging can be cut and folded into an infinite variety of shapes and sizes.
Supports marketing efforts. Corrugated packaging can be printed with colorful, high-quality graphics, the council notes, enabling the containers to serve as traveling billboards. In many cases, the corrugated carton serves as the primary package all the way to the sales floor, reducing packaging costs for the manufacturer and handling costs for the retailer.
Easy availability. More than 1,600 box plants in the United States and Canada produce corrugated, making it readily available anywhere in North America.
Environmental friendliness. Though plastic crates are reusable, they're made from a non-renewable resource: fossil fuels. A significant percentage of plastic crates eventually end up in landfills where they do not degrade, the council reports. By contrast, currently about 74 percent of all corrugated is recovered for recycling and then used to make new corrugated boxes.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."