For global supply chain solutions provider Panalpina, access to solid weight and dimensional data has led to better, more efficient cargo handling operations.
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.
Anything a supply chain service provider can do to cut costs and increase capacity can help it stay competitive. Instituting a good dimensioning program is one of those things, and for many companies, the data collected represents a gold mine of information.
Panalpina is one of the world's largest supply chain solutions companies. Its 16,000 employees operate from some 500 offices in 70 countries, providing air- and ocean-freight forwarding, value-added logistics services, and other supply chain services. To better understand its loads, Panalpina relies heavily on cubing and weighing systems to gather accurate dimensional and weight data—information that can help it to better handle products and cut costs.
Panalpina measures almost all of the cartons and pallets that enter its facilities, recording their dimensions and weights. For weighing items, the company uses scales supplied by First Weight, NCI, Mettler Toledo, and others, depending on geography.
For the cubing process, the company relies on automated CubiScan systems from Quantronix at selected hub locations. These systems provide exact measurements and do so with greater precision and speed than humans can. "We want to eliminate the human element," says Tim Hotze, corporate head of the logistics competence center North America and vice president of logistics for Panalpina. "These systems are much more accurate than you or I are."
The CubiScan systems deployed at Panalpina include units that provide case-level measurements as well as models that perform dimensioning on pallet loads. For the company's transportation locations, the dimensioning information is imported into its Transit warehouse management system to facilitate dimensioning as well as transactions such as load planning and weight validations.
Similar dimensional information is gathered on cartons and load units arriving at most of the 280 warehouses that Panalpina operates worldwide. Many of these facilities also perform value-added services for clients, such as light assembly, kitting, and ticketing.
The dimensional data can also be integrated with management and slotting software to determine optimal placement of items in storage and picking areas. Panalpina deploys additional state-of-the-art warehouse design and optimization tools that allow it to create 3D models of facilities and plan slotting routines for various scenarios prior to physically changing warehouse layouts.
The company also collects the information for security reasons. Weight is recorded on inbound items and compared with the numbers recorded on the same item when weighed previously at a transit facility. If any differences exist, it may be an indication of theft or tampering during transit and can trigger additional control processes.
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A good example of how the CubiScan dimensioning systems function at Panalpina can be found at the company's facility in Miami. The site began using cubing systems in the late 1990s and has regularly updated its systems with the latest technology ever since.
One of the major customers serviced here is an aerospace company, for which Panalpina processes and ships parts. To help assure quality and accuracy, Panalpina automatically measures and weighs every item upon receipt at the facility. Receiving is configured with a U-shaped conveyor for handling arriving cases. In-line within the conveyor are two CubiScan 150 dimensioning units augmented with digital cameras that take pictures as each item is dimensioned and weighed. The customer can view the images and other shipment details at any time via Panalpina's track-and-trace application.
"Our warehouse agents just have to push a button," says Hotze. "That is much better than them taking a tape measure, measuring three dimensions, and inputting it into the computer. Per receipt, that time saved really adds up and drives productivity improvements. Also, the upload of the digital pictures is fully automated and allows us to offer a full audit trail to our customer."
Since many of the receipts will ship as air cargo, potentially on passenger planes, the conveyors also feed the inbound cases through a Rapiscan X-ray machine. The X-ray detection is performed as part of the Certified Cargo Screening Program and done on the inbound side so that outbound freight can be processed faster and cut-off times can be extended.
Full pallets, crated loads, and heavier freight that cannot ride on the conveyors are processed using a floor-mounted CubiScan 1200 AKL system. Weight is also captured, with the load placed on a floor scale stationed below the dimensioning system. "It's a one-step process as we take the weight, images, and dimensions at the same time on receipt," says Hotze.
The dimensional information also helps with the outbound load planning process. For instance, customer service agents can use the data to determine which cartons and freight are to be loaded into what outbound container.
Hotze says the cost of dimensioning systems has come down since Panalpina first began using them, which means the company realizes a faster return on its investment. On top of that, the machines have few moving parts, so very little maintenance is required. And he says that the integration services offered by vendors help to assure that data integrates smoothly with management software so that the information can be acted upon quickly.
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.