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.
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.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.