10 ways to boost DC performance with cubing/weighing systems
Cubing and weighing systems may be best known for their use in shipping operations. But they can boost performance in a variety of other areas as well.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
As anyone who's ever had to gather weight and dimensional data on a pile of packages can attest, dimensioning systems (also known as cubing and weighing systems) can take a lot of the pain out of the process. Instead of wrestling with rulers or tape measures, all the user has to do is place the item or carton onto a cubing device (or in the case of a pallet, within range of a laser-based measuring system), and the rest happens automatically. In many cases, the process takes less than a minute.
Not only are these systems speedy; they're also precise. The data they provide is accurate to within 1 inch on pallet dimensions; within 2/10 to 1/4 of an inch when measuring a carton in motion on a conveyor; and to within 1/1,000 of an inch when measuring a static carton.
"You can never come close to that with a tape measure," says Randy Neilson, director of sales and marketing for Quantronix, which markets the CubiScan line of dimensioning devices. "Cubing systems can improve your overall accuracy and consistency."
As for how this equipment can be used in DC operations, there are a lot of possibilities—more than you might imagine. Although they're perhaps best known for their role in package rating and shipping operations, that's just part of the story. When integrated with other systems—warehouse management systems, transportation management systems, and the like—today's high-speed cubing and weighing systems can boost DC performance in a variety of other ways. What follows is a brief look at 10 areas of an operation where good dimensional data can come into play.
1. Facility design. When a company starts planning for a new facility, one of the first things the designer will want is a rundown on the products that will be stored there: How large are they? How much do they weigh? Will they be stored individually or on pallets? The answers will dictate everything from the design of the facility's picking and packing areas to the type of storage that will be used in the facility.
2. Storage. Good dimensional data can help DCs make the most of their storage space. Once stock-keeping units (SKUs) have been weighed and measured, their profiles can be uploaded to a warehouse management system (WMS) for use determining the optimal storage location for each item—where in the building it should go and whether it should be stored in flow racks, shelving, or another storage medium. Not only does that help optimize storage space, but it also ensures that the SKUs will actually fit in their assigned spaces.
If the SKUs are to be placed in automated storage systems, such as automated storage and retrieval systems, carousels, vertical lift modules, or robotic storage systems, the dimensional data can help assure items are stored as densely as possible.
3. Slotting Dimensional data can help streamline the slotting process. Once the SKUs' dimensions have been captured, they're imported into special slotting software (typically from a WMS), which uses that information—in conjunction with data on order characteristics like pick frequency—to determine how to arrange products within the pick zones to optimize order fulfillment.
4. Picking. In operations where workers pick directly into shipping cartons, dimensional data can be key to preventing carton selection errors. All too often, pickers are left to make their best guesses as to what size carton to use, but that can prove costly. If the box is too big, the company ends up paying to ship air. If the box is too small, the packer has to remove the items and repack them, which can slow throughput. Dimensional data can help ensure the right size carton is used.
On top of that, the data can be helpful in determining where individual items should go in a carton and the order in which they should be picked to ensure everything fits neatly inside the box without crushing the items on the bottom. In addition, accurate weight information on SKUs can promote good ergonomic practices by ensuring that order cartons weigh no more than 40 pounds.
5. Verification. Once an SKU's weight has been captured and uploaded to the WMS, the information can be used to verify picking. As each order is received, the WMS calculates how much it should weigh, based on the weight of the carton itself plus each of the items it contains. After the order has been assembled, the carton is weighed—often via an in-line scale on a conveyor system. If the actual weight differs from the expected weight, the carton can be set aside for further examination. Automated verification can cut down on the need for manual order inspections, resulting in substantial savings in time and labor.
6. Packing. Dimensional data can go a long way toward helping companies optimize their packaging. Shipping items in oversized cartons stuffed with filler can lead to enormous waste and inefficiency—and it happens a lot more often than you might think. "Most companies are shipping cartons that are 40 to 60 percent too large. Shipping packages that are too large is expensive," says Hanko Kiessner, CEO of Packsize, a supplier of automated packaging systems.
Good dimensional data opens the door to a number of solutions, including the use of custom cartons. Packsize, for example, offers systems that use dimensional information to build a custom carton in about 30 seconds. That might sound expensive, but Kiessner says custom cartons actually save shippers money. He reports that with Packsize's automated systems, customers typically save 3 to 8 percent on their shipping charges, in addition to cutting their corrugated costs by 20 percent and reducing their use of fill materials by 80 to 100 percent.
Dimensional data can also help with packaging optimization in operations that use standard-sized cartons. For example, the data can be used in computer-aided carton selection as well as for decisions about the optimal amount of void fill and other packing materials to use.
7. Pallet building. Dimensional data can be quite useful when it comes to building stable pallets. Once the data has been entered into the WMS, the system can use it to determine how items should be stacked on the pallet (typically with larger and heavier items on the bottom) to ensure load stability.
8. Load building. Not only can dimensional and weight data help with building pallets, it can help with building loads for trailers and other conveyances. Whether an operation is shipping full pallets, cases, irregularly shaped products, or a mix of all of the above, it can feed the data into shipping, warehousing, or load building software, which then determines how to load the truck to make the best use of space while staying within weight limits.
9. Shipping. The advent of "dimensional weight" or "dim weight" billing has changed the economics of parcel shipping, but good dimensional data can help shippers avoid costly mistakes. Under the carriers' dim weight rules, a shipper tendering a large, low-density package must determine both the package's actual weight and its dimensional weight (which takes into account the package's length, width, and height). If the dimensional weight exceeds the actual weight, that becomes the basis for the freight charge. By gathering precise dimensional data on their packages, shippers can ensure they're rating their parcels correctly and avoid chargebacks by carriers.
But it's not just about avoiding chargebacks. Good dimensional data also allows shippers to estimate carrier charges for rate shopping purposes.
10. Customer service. Good service includes providing customers with good data. By passing along dimensional data on your products, you give customers the opportunity to use that information to streamline their own operations. Plus, if you charge for shipping, you can boost your credibility with customers by including the relevant dimensional and weight data on invoices. That way, they can be assured they're being charged appropriately for freight.
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."