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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.