Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
You might think that setting up a packing station is no big deal. Just gather up the necessary equipment and supplies—a work table, a bunch of empty cartons, tape, and a pile of labels—and you're good to go.
But that could be a costly mistake, say the experts. By failing to give sufficient thought to the packing process and the design of the station itself, you could set yourself up for a host of problems, including injuries, inflated transportation costs, and money spent on packing materials you don't really need.
Where do companies go wrong when setting up packing stations? What follows is a rundown of some of the most common pitfalls and tips on how to avoid them.
Pitfall #1: Wasting packing materials. When selecting packing material for a given shipment, packers are often left to make their best guesses as to how much they'll need. Yet "guesstimating" can prove costly. If packers don't use enough material, the result could be product damage. But if they use too much, it means unnecessary expense for the company.
Overdoing the dunnage can also put your company's image at risk. "Consumers get really angry when they receive cartons that are mostly filled with packing peanuts, plastic pillows, or paper," notes Steve Martyn, CEO of GRSI Inc., a packing system designer and systems integrator.
This is where an automated dispenser with presets for specific types of products and box sizes can be a lifesaver, says Tara Foote, director of marketing for Ranpak, a manufacturer of dunnage, void filler, and dispensers. "It gives you more control over the amount of material," she says. "You know every time that there will be two feet or four feet of paper going into the box because it is set to dispense that size."
Another way to minimize waste is to choose packaging material that's reusable, says Foote. If there's a mispack or an order is pulled back for some reason, you can simply use the paper, cushion wrap, or packing "peanuts" in another carton.
Pitfall #2: Choosing the wrong cartons. It might sound like a trivial matter, but shipping items in the wrong sized cartons can lead to enormous waste and inefficiency. If the box is too big, the company ends up paying to ship air. If the box is too small, the packer will have to remove the items and repack them, which can slow throughput.
Failure to choose the right carton can cost a high-volume shipper millions of dollars over time, says Martyn. For example, too-large cartons may be assessed dimensional-weight charges by parcel carriers and lead to less-than-optimal trailer and container utilization. And consider this: If an operation shipping 8,000 cartons a day had to fill out every carton with four air pillows at 2.5 cents each, it would spend $800 daily to fill that space. Multiply that by the number of days worked annually, and you're nearing $200,000—money that essentially will be thrown in the trash, Martyn says.
Carton selection errors are more common than you might think. Packers select the wrong box about 25 percent of the time, says Jack Ampuja, president of Supply Chain Optimizers, a consulting firm that specializes in packaging optimization. And the problem isn't limited to operations that offer a large—and confusing—array of package choices. "We see packers struggle to find the right box out of six," says Ampuja.
To avoid these problems, many high-volume packing operations turn to computer-aided carton selection, Ampuja says. When automation is not an option, careful training with regular refreshers is needed.
Pitfall #3. Trying to do too much in too little space. Trying to do multiple tasks in tight quarters may save space, but it creates inefficiencies and interferes with work flow, says Foote. "We have seen operations where ... [packing station operators] build the box, fill it, tape it, label it, verify it, mark it, put promotional materials in it, then ship it out—everything short of picking the order." Yet sometimes there's barely enough room for the packers to move around, she observes.
If space is at a premium, avoid using bulky, static equipment, Foote suggests. "Some pack stations still use manual kraft [paper] on a roll or bubble on a roll—essentially material on a big stick. That takes up a lot of space." Instead, consider choosing equipment that can follow the operator or be pushed out of the way, like dunnage dispensers on swing arms or on movable carts.
It's also important to keep your long-term needs in mind when setting up packing stations. Because companies often end up adding new products or carton sizes as their business grows and changes, Ampuja recommends leaving enough space to add new packing stations or expand existing ones.
Pitfall #4: Staying with manual processes when automation makes sense. These days, you can buy a machine for almost every packing station task: box makers that build a carton around an item, dunnage and void fill dispensers, automatic label printers and applicators, box closers and sealers, and more. How do you decide which packing activities to handle manually, and which to automate? Volume and speed requirements are the main considerations, says Ampuja. "If there isn't enough volume, then the [cost of] the equipment can't be justified," he says.
Complexity also comes into play here. For operations that handle large numbers of products with varied shipping characteristics, machines that swiftly weigh and measure the items and then select the appropriate box may prove well worth the cost.
Another consideration is the likelihood of human error and the potential cost of those mistakes. If your shipments require quality checks at the packing station or you hire temporary workers to handle seasonal volume spikes, then error rates may be unacceptably high. In these situations, automation can reduce variability and boost accuracy and consistency, says Martyn.
If you do use automated equipment, make sure you're getting the most from it by training operators in proper techniques, says Foote. It can be hard to switch from manual to automated processes, and workers often try to continue doing some tasks by hand—a practice that can slow the whole operation down. You may need to convince them to let the machine do the work for them, she says.
(For a case study of one company that benefited from automated packaging systems, see "Koch cranks up the volume" from the November 2008 issue of DC Velocity.)
Pitfall #5. Failing to design the station with the worker in mind. You can't afford to give short shrift to ergonomics, because you'll put your employees at risk of short-term or even permanent injury, Ampuja warns. An ergonomics specialist can help you get things right, but there are common-sense steps you can take on your own.
For example, to reduce the risk of back injuries, make sure the materials in your packing stations are stored at the appropriate height. If your workers have to turn, twist, bend, or reach to get at supplies, consider extending or reconfiguring the packing station. If your packers have to build pallets, try using a scissor lift to raise or lower the pallet so they are always working at the same height.
Rotating packers to different types of work so they're not doing the same repetitive motions every day is helpful, as is providing training on how to avoid repetitive motion injuries, Ampuja says. It's also important to have adequate lighting for workers to read effectively and perhaps a padded floor mat to ease back and leg strain. Consider what the packer does after the box is packed: Does he or she have to carry the box—which may now be at maximum weight—more than a few paces, lift it high, or place it down low? If so, consider using carts or conveyors to move boxes to the shipping area.
One often overlooked aspect of packing station design is the need to accommodate workers of all sizes. It's common to see packing stations that are comfortable for tall men but are physically challenging for their shorter counterparts. "It's important to set it up for the average height of your workers, not for the height of the person who's designing the station," Foote cautions. She encourages companies to adopt "flexibility within reason"—using tables and dispensers that allow packers to adjust heights and angles as needed.
Teach them right
As important as it may be, good packing station design can only go so far toward optimizing operations. The other part of the equation is training packers to do their jobs properly.
As an example of one way to go about it, Ampuja cites the case of a shipper that developed an in-house training film. Project managers interviewed packers at the company's DCs about what worked and what didn't, and developed a script based on their findings. The result was a film starring one of the company's most experienced packers, who talked about what he does and demonstrated "dos and don'ts." The film was used not only to train new hires but also as a refresher course on best practices.
As for what else companies can do to uncover inefficiencies in their packing operations, Ampuja offers this suggestion: "Go out and try to do that job yourself. You'll see where the issues are immediately."
Editor's note: This is a revised version of the article. It includes several paragraphs of information that were added to the original version, which was posted on March 15, 2010.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."