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.
The process of picking, packing, and shipping an order consists of a series of steps that occur in a defined sequence. Whether that process is completed correctly and on time depends on how well each step is carried out. When automation is involved, an additional factor comes into play: Success also depends on how well the various pieces of equipment used in the process are integrated with each other. In the case of an automated packaging line, that means getting each of the machines—carton erectors, shrink wrappers, void fillers, labelers, document inserters, carton sealers, conveyors, and the like—to do its job at the right time and at the right speed.
What if a packaging line doesn't achieve that perfect synchronization? At the very least, backlogs and equipment jams could develop; at worst, the line might stop altogether. It doesn't take much for that to happen; just one mistake or oversight can undermine productivity and reliability.
To find out what could go wrong and how to prevent it, we talked to a systems integrator, a packaging engineer, a third-party logistics (3PL) company executive, and a manufacturer of packaging equipment and systems. Here are their tips for avoiding 10 common packaging line pitfalls.
1. Keep your supplier in the loop. The surest way to bring a packaging line to a halt is to run out of corrugated cardboard, labels, thermal forms, foam cushioning, plastic wrap, or other consumable materials purchased from suppliers. That's generally not a concern when it's business as usual. But if, say, you launch a new product or experience a significant bump in sales, your suppliers might not be able to handle the additional demand, cautions Tyler O'Neill, global packaging engineer for the supply chain services company ModusLink Global Solutions. Regular communication and sharing forecasts will help both parties avoid surprises. "If you think something will change, let your suppliers know," he advises. O'Neill also recommends buying strategically from multiple suppliers to ensure the availability of materials.
2. Inspect before you accept. In a high-volume DC, the last thing you want is for defective packaging materials to be inducted into a line. Examples include misprinted cartons and labels that smudge, to name just a few possibilities. You may not find out there's a problem until orders make it part way through the line, O'Neill says, and if your supplier can't immediately deliver replacements, you might have to shut down the line temporarily. A formal protocol for verifying that all incoming shipments of packaging supplies are correct and up to standard will help you prevent stoppages, he says.
3. Minimize refilling of consumables. The more often you have to refill supplies like label stock, liquids, glue, tape, and the like, the more often you'll have to slow down or stop a line, or take an employee away from a workstation to refill them. "That's why whenever we have any consumables in a packaging line we're designing, we like to put in the largest magazine possible," says Jay Moris, president of systems integrator Invata Intralogistics. Adding extra capacity does add cost, he says, but smaller magazines and reservoirs can negatively affect uptime. Furthermore, if a piece of equipment depends on an operator to notice when consumables are getting low, then a larger container requiring fewer refills will reduce the opportunity for an operator to miss a refill signal or wait too long to replenish supplies.
4. Build in redundancy. Automated packaging equipment is expensive, so buyers may be reluctant to acquire and maintain spare equipment. But if a critical piece of machinery goes down, the resulting delays could be far more costly than the price of a spare. "You can save money if you buy cheaper equipment, use smaller magazines, or don't keep spares, but if you end up with two hours of downtime on Cyber Monday, nobody will care about the money you saved," Moris observes. Anything that could not be handled manually is a candidate for backup; if a box taper went down, for example, taping could be done by hand, albeit more slowly, but a label printer could not be replaced with manual labor. Moris recommends integrating critical spare equipment into the line so that in an emergency, you could immediately switch over to the backup machine, rather than have to pull it out of storage and shut down the line to install it. The extra machine can also keep the line moving while the other is undergoing maintenance or consumables are being refilled.
5. Make it simpler. Using complex packaging that requires a lot of folding and forming in the line can really slow things down. For instance, inserts with multiple folds that take some effort to fit into a box correctly typically require many time-consuming touches and may not be easy for people to master. From the standpoint of speed, says O'Neill, a better choice would be to use a prefabricated unit, like a thermal-formed or pulp-molded tray that can be quickly dropped into the box and fitted around the product.
6. Take operating speed into consideration. Each piece of equipment requires a different amount of time to complete its task. To prevent slower machines from compromising productivity, position them farther down the line if the packing method allows. Moris cites the example of a customer that had to print and insert lengthy packing lists into its orders. Rather than hold things up waiting for the multipage lists to print out, Invata placed the printer/inserter farther downstream. As soon as the ordered items are "married" to a shipping carton, the system instructs the printer to produce the packing list, thus allowing plenty of time for printing before the carton arrives at the document inserter.
7. Pay attention to pacing. If bottlenecks develop on a partially automated line, it could be because the pace at which operators are working is not well matched to the flow and speed of the equipment, says Andy Smith, president of Consumer and Industrial Logistics for Genco, a third-party logistics company that has a packaging division. "For example, you could have eight people working on a line, but if one has a four-minute task and another has a two-minute task, that's where the bottleneck will be," he says. He suggests observing the operators to validate the time required for each task and then balancing the work to maintain the necessary pace and ensure a consistent work flow. Lean techniques such as those used to manage manufacturing production lines can help here.
8. "Shake hands" the right way. If the integration of equipment, software, and control systems is not done properly, an order's progress through the packaging line will be a bumpy one indeed. "You have to make sure the software is programmed correctly, that it works in conjunction with every piece of equipment, and that each piece of equipment works properly with the others," says Louis Suffern, e-commerce solutions manager with Sealed Air's Product Care division. At every juncture, he explains, there will be an electronic "handshake" that signals the next piece of equipment to take over. If takeaway speeds or the timing of the electronic handshake aren't correct, a machine could detect a fault and suspend operations. That's why thorough testing—not just of each piece of equipment but also of the software—is critical, he says.
9. {Plan for exceptions. In an automated packaging system, errors like incomplete orders, out-of-register printing, and unreadable bar codes are rare, but they do happen. If you don't design in a protocol for handling errors and rejects, the line will end up slowing or stopping every time there's an exception, no matter how small, says Suffern. Ideally, he says, you want a way to resolve problems and get a package back on the automated line with the least amount of disruption and the fewest touches. One option is to automatically divert exceptions down a conveyor to a workstation specifically set up to resolve errors, and then to reinduct the corrected package at the appropriate station on the line. Suffern has also seen systems that scan packing lists to identify missing items and then convey them to the packing station; that way, workers don't have to leave their posts to complete the orders.
10. Design for tomorrow, not just for today. If your packaging line has no flexibility built into it, you're likely to encounter slowdowns when any change comes along, says Genco's Smith. Equipment that can accommodate changes in box size, graphics, labeling, and other attributes will keep things moving without lengthy shutdowns. "You want to have limited changeovers with the least amount of time to switch over for your product mix," he advises. To get an idea of what may be coming down the road, he says, make sure you're informed about new products in development, special promotions, and issues like theft prevention and entry into new markets that could prompt changes in packaging. "It's a mistake to design for what's happening now and not for where you need to be tomorrow," Smith says.
THINK HOLISTICALLY
One last, important piece of advice is not so much about avoiding a pitfall as it is about changing the way you think about automation. Moris of Invata Intralogistics suggests treating a packaging line as a single, integrated entity, rather than as a collection of individual pieces of equipment. "[Automated packaging lines] are not just the sum of their individual components," he says. "They become an entire machine in themselves." By keeping that in mind, DCs can better maintain their packaging lines' productivity and reliability.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”