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.
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”