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.
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]."