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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."