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THE ADVANCEMENT OF DC FULFILLMENT TECHNOLOGIES

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Archives, Global Logistics, Global Trade Daily, Uncategorized, Warehousing

THE ADVANCEMENT OF DC FULFILLMENT TECHNOLOGIES

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The transition to advanced automation is well underway in distribution and fulfillment (D&F) operations. Within the four walls of distribution centers (DCs), traditional labor-intensive process and material handling strategies are being replaced by more automated alternatives. Retail leaders are beginning to automate and upgrade specific aspects of their DC operations that are bowing under the weight of e-commerce pressures.

Retailers at the forefront of this transition are driven by a desire to mitigate risks to profitability and business continuity by:

-Reducing the dependency on labor

-Increasing throughput rates to meet service level agreements (SLAs)

-Enabling the flexibility to adapt to peak seasonal fulfillment demands

-Keeping pace with year-over-year growth forecasts

New automation investments are focused on achieving strategic supply chain advantages in critical picking, inventory storage and retrieval processes — where peak labor efficiencies are no match for escalating e-commerce fulfillment complexities and SKU proliferation. As throughput levels rise, delivery windows shrink and labor becomes more unpredictable, retailers will find it more difficult to sustain productivity and grow profit margins.

At the same time, emerging advanced automation solutions with integrated software offerings continue to improve, presenting operators with attractive and attainable returns on investment (ROI).

PROGRESS CONTINUES ALONG KEY FUNCTIONAL AREAS

High-speed sortation equipment still plays an essential role in large DCs with high throughput levels, high-level order volumes, and associated shipping and receiving requirements. But while the prospect of unbolting traditional sortation and conveyor equipment is still largely unfeasible, integrated automation systems offer opportunities to upgrade the core of many DC operations: picking, inventory storage and order fulfillment orchestration.

Automated Storage and Retrieval Systems (AS/RS)

AS/RS can be deployed within existing DCs to maximize throughput and improve receiving, order consolidation, and shipping efficiencies. These flexible solutions offer higher storage densities within reduced operational footprints and the flexibility to adapt to a variety of configurations.

High-speed AS/RS shuttle systems are ideally suited for replacing manual picking in high-volume operations. The modular design of racking and storage frameworks enables the addition of new levels and aisles to accommodate future growth in storage demand. Shuttle systems are typically designed with goods-to-person (GTP) and goods-to-robot (GTR) configurations to eliminate picking travel times and allow fewer labor resources to be more productive.

When full pallets are required for wholesale distribution, AS/RS unit load systems rely on one crane per aisle to pull pallets from storage racks and stage them for truck loading.

Robotics Integration

The increased integration of robotics is also helping DC managers alleviate growing e-commerce fulfillment pressures. Robotics strategies are focused on replacing undesirable, unsafe and repetitive manual tasks to free up available labor resources for more thoughtful, high-value roles. And in many cases, retailers are turning to robotics to drive productivity levels beyond human capabilities.

While the vision of a fully autonomous robotic fulfillment operation is far from being realized, recent advancements in robotics are helping to transform a multitude of critical workflows, processes and applications:

–Truck loading and unloading

-Sorter induction

-Each, case and pallet picking

-Palletizing and depalletizing

-Case packing and unpacking

-Transportation of materials (pallets, goods, cartons)

These flexible robotic options can be adapted to benefit DC operations in a variety of ways:

-They can be activated or deactivated as needed to supplement manual resources and flex for peak seasons.

-They can be quickly reprogrammed for new routes and tasks.

-They can be orchestrated into a variety of automated workflows with a modern warehouse execution system, such as Honeywell Intelligrated’s Momentum™ WES.

In addition, modern robotics solutions operate using universal control platforms — such as the Honeywell Universal Robotics Controller (HURC) — allowing them to continually adapt to changing DC conditions via robot-to-robot, machine-learning technologies.

SMART SOFTWARE AND SIMULATION

As D&F operations become more automated and complex in order to keep pace with demand, the integration of advanced warehouse automation software is playing an increasingly important role. Historically speaking, warehouse software was designed to serve very specific functions, which ultimately has added to DC operational complexities. These problems can typically be traced to the presence of multiple software vendors for various automation systems and robotics platforms, which can result in disconnected islands of automation and a continual cycle of obsolescence and upgrade challenges.

Often, this traditional, multi-vendor approach to software makes full DC fulfillment system orchestration next to impossible. Today, retailers and DC operators need to rethink their software strategies and deploy smart warehouse automation software platforms designed to reduce complexities by:

-Unifying disparate automation systems

-Orchestrating all automation systems for full warehouse execution

-Simplifying software support and upgrade management

Modern warehouse automation software like Momentum is designed to provide a single, unified platform for enabling advanced automation in complex DC environments. Momentum gives DC managers the tools to:

-Leverage operational data for workflow optimization and business insights

-Apply machine learning for intelligent decision-making

-Align order release and processing with customer SLAs and priorities

-Maximize AS/RS storage and inventory availability

-Ensure labor productivity and utilization

-Orchestrate advanced AS/RS and robotics into DC workflows

WES systems are even beginning to assume upstream, inbound warehouse management system (WMS) processes and may potentially eliminate the need for separate WMS and WES systems.

BEGIN YOUR TRANSITION

Honeywell Intelligrated is providing advanced technologies and integrated software to help retailers transition from traditional fulfillment workflows to fully integrated automation strategies. We’re leveraging multiple AS/RS solutions, state-of-the-art robotics and our Momentum warehouse automation software to create robust, scalable and supportable technological infrastructures that lay a strong foundation for continuous growth.

Powered by a unified approach to software and advanced data science techniques, these tools can provide complete automation system orchestration while minimizing integration complexities. With decades of material handling industry expertise, we take a consultative approach to develop automation solutions that help forward-thinking companies solve their biggest fulfillment challenges and achieve rapid returns on their investments.

Wherever you are on the continuum of automation, we can help you achieve robust fulfillment capabilities today and accelerate your progress toward an ever-more automated future.

SIMULATE WHAT’S NEXT

Among the cutting-edge features of modern WES software platforms include the capabilities to deliver extremely accurate projections of advanced automation and system performances — before, during and after implementation

— with simulation, emulation and digital twin models.

Simulation benefits include the abilities to:

-Evaluate full system and individual robotic cell prototypes

-Test automation system interdependencies

-Validate and refine operations to improve layout and product flow

-Identify where AS/RS and robots will provide the greatest ROI

-Create a fully functional digital twin of a live fulfillment operation:

» Enable scenario-based testing and response planning

» Save time and money during the physical commissioning stage

signode
Archives, Global Logistics, Global Trade Daily, Warehousing

Signode’s Latest Automated Storage and Retrieval System Enhances Warehouse Management

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During the fully digital 2021 ProMat show, Signode, a global manufacturer of innovative warehouse automation solutions, showcased the latest offerings in their solutions portfolio. The demos included the newly upgraded StorFast® ASRS (automated storage and retrieval system). The StorFast® system emphasizes the importance of managing the warehouse, allowing for twice the speed with improved control for acceleration and deceleration as compared to their previous version. Additionally, increased weight capacity components provide the opportunity for handling up to 4,400 pounds – maximizing all weight requirements for Signode’s customer base.

Vice President of Marketing and Product Management, Mike Stein, shared with Global Trade Magazine that even though the upgrades are subtle, they provide a significant advantage for capacity, speed, controls, simplification, and flexibility – things that highly differentiate companies from their competitors.

What challenges are addressed through Signode’s solutions, specifically for the warehouse?

“More pressure has been put on the warehouse, especially over the last year while navigating the COVID-19 pandemic. Before that, we were seeing similar trends due to the growth of e-commerce and maintaining customer expectations for quicker response times and deliveries. It used to be all about the two-day delivery expectations and customers were happy. Now, if a customer cannot receive something in two hours, they will go somewhere else.

Consumer expectations were increasing pre-pandemic, so retailers had to be nimbler when it came to order fulfillment, whether through direct shipping or aggregators such as Amazon. All of this required warehouse operators to be more responsive through technology, which also drove thought processes around going through large facilities in remote areas or warehouses closer to customer centers. These circumstances forced the change of philosophy around footprint and density. For Signode, our focus on automation – as seen with our ASRS System, lends itself to the more high-density fulfillment centers that take advantage of a smaller footprint but compact more product into a smaller space. That trend is something we believe will continue as fulfillment requirement times go down.”

Discuss the StorFast® ASRS system and its high-density, lights-out, 24/7-access. How does this benefit businesses?

“Signode’s general focus on automation is in synchrony with our customers’ desire to operate efficiently. Our background is rooted in the end-of-line material handling and transit packaging, so moving goods from a production line and handling them safely and efficiently has always been our focus. We understand operators’ needs for efficiencies, uptime, maintenance, product handling, and related needs as premiums. As we move into the requirements for automation, all of those factors must continue to be upheld, from product handling to employee safety.

Additionally, we understand that the product gets handled in a variety of ways, so we utilize automation activities to ensure that the product is still going to be moved through a warehouse, 3PL-type facility, an LTL trucker, or similar, and needs to be protected and packaged appropriately. The 24/7 operations access serves as an extension of this automation in continuing required efficiency and the ability to safely move product from the manufacturing environment through the warehousing and shipping process. It also provides a solution for labor access and changes in demand.”

How do Signode’s solutions support employees?

“Most of our customers have a variety of products, order flow and seasonality, and require a certain level of flexibility. Automation is great for repetitive activities – and it can be flexible, but a lot of times you need the type of flexibility that only workers or employees can provide in terms of responding to changing dynamics. So, it is important for even a highly automated system to have the capability to work in conjunction with the employees who provide a lot of the thinking and flexibility of the system, while maintaining that ability. Our experience with different parts of the packaging and warehousing system allows us to focus on designing products and solutions in a way that makes it easier for maintenance, IoT integration for monitoring remotely, and more. The machines must be well maintained, and our solutions allow for that.”

What competitive advantage is gained for warehouses with Signode’s solutions portfolio?

“Signode focuses on the concept of rightsizing. There is a lot of technology available to automate packaging lines and warehouses, but we provide our customers with a competitive advantage through rightsizing the system based on their needs. For example, the needs of a customer with high volume but low SKU count are quite different from the needs of a customer with lower quantities but more variety. The design of our system is focused on meeting individual customer’s specific needs – even though the same technology is being deployed. We learn about the needs of our customers as early as the RFP phase, understanding the nature of the business and overall goals, ins and outs, seasonality, handling of goods, and more. We learn what the long-term shifts are as well to ensure we assist them in deploying a system that gives the most effective use of space, capacity, resources, and capital investment.”

___________________________________________________________________

Mike Stein is an experienced, forward-thinking executive who has a proven track record of developing best-in-class organizations and leading strategic business initiatives. He values and facilitates collaboration across all functions, and applies his global experience as a leader, mentor, and catalyst to his progressive efforts for his team at Signode since 2017. Mike holds an MBA with Honors from the University of Chicago, Graduate School of Business, and an MS in Mechanical Engineering from Cornell University.

packaging
Archives, Global Shippers 101, Global Trade Daily

Is Your Furniture Packaging Optimized?

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The world of furniture packaging has transformed as more companies rid their business of shipping products full truckload (FTL). The more frequent method of shipping has transitioned to less than truckload (LTL) for assembled furniture or small parcel for ready to assemble furniture. This change in supply chain has a direct impact on the packaging required to survive shipping without product damage.

Listed below are the four steps we take at BoldtSmith Packaging with projects specific to optimizing the packaging for furniture.

Know your Supply Chain

The first step in developing a packaging solution is understanding the supply chain in which your product is shipped through. This directly impacts the packaging design and testing protocols required to verify a concept. A product shipping full truck load (FTL) on a company’s existing fleet in comparison to less than truckload (LTL) requires completely different packaging solutions. Too often do we see a customer using the same concept that works shipping FTL but is damaged in an LTL environment and the blame is put on the carrier. This same concept applies to small parcel ready to assemble furniture packaging.

A few questions that are helpful when evaluating a supply chain are outlined below

-How is the product stored and handled internally prior to shipment?

-What machinery is used to transport the packaged product?

-Fork truck? Hand truck? Clamp truck?

-If palletized, does the pallet allow for the available machinery to be utilized without special attachments or modifications?

Example: Fork truck tine extensions

-How many hubs will the packaged products go through if shipping LTL?

-What hazards are to be expected during shipping and handling?

-Vehicle vibration, forklift handling, horizontal and vertical impacts, drivers clipping curb, etc

These questions are often best answered by the way BoldtSmith Packaging approaches projects like this. Boots on the ground. We believe in observing the supply chain first hand. For this reason, often our first step in projects is going through the supply chain finding the answers to these questions.

Design to Survive

Now that we have an understanding of how the product and packaging will be shipped and handled, we can design packaging to survive these hazards. For example, ready to assemble furniture products getting damaged during small parcel shipping from corner drops require a company different solution than that same product experiencing scratching due to vibration.

For this reason, we typically provide multiple packaging designs ranging in protective capabilities and material, freight, and labor costs. This gives our customers the information required to make informed decisions as to which design works best for their specific needs.

Exploring a variety of packaging designs and materials requires internal design and sampling capabilities. BoldtSmith Packaging has a team of packaging engineer’s to complete designs internally which allows us to remove packaging manufacturer’s from the design process. Our customers then own the packaging specifications and can send them to multiple packaging suppliers for competitive bids. This vital for both domestically manufactured furniture and overseas.

After multiple designs are created, we then proceed with making samples internally. Whether that is utilizing our CNC machine specifically made for corrugated and foam or building a crate in our wood shop. Samples are then tested to verify they can survive the intended hazards.

Test to Verify

The testing portion of the project is so critical as it provides the data needed to prove the designs can survive the supply chain. An interesting point is we often discover companies pass testing and then consider that the completion of the project. For BoldtSmith Packaging, that is often just the mid-point of the project.

Our goal is to provide customers the best possible packaging. This means testing the product and packaging to failure. Once we reach failure, we can redesign and pass testing but unless we fail testing, we will not know where the pass/fail line is. For example, if we are utilizing a 3”, #2 lb density EPS foam and passed testing. Are we able to still pass testing utilizing a 2.5”, #2 lb density EPS foam? If the answer is yes, then we continue reducing the foam thickness until we fail. When we fail, we then explore alternate foam density’s or materials.

The test however for this concept to work as intended must replicate the hazards the product and packaging actually experience during shipping. This is another reason why step 1 of understanding the supply chain is so critical.

Track Progress

After the optimized design has been implemented, the project still has one remaining step. Data must continue to be gathered to track damage. Packaging optimization is best understood as a continuous process. Customer feedback should be gathered in a specific and data-driven manner. If a product becomes damaged during shipping, below are a few examples of information that would need to be acquired.

-Pictures and a description of the damage

-Location of the customer (Domestic, Overseas, etc.)

-Hard costs associated with the damage

-Hard costs include product, packaging, freight, labor costs, etc.

-Soft costs associated with the damage

-Soft costs include logistics associated with a damage claim, loss of sales, reputation, etc.

-Percentage of damage incidents relative to the number of shipments

The questions relevant to the customer providing the information must be gathered in a consistent manner. We recommend having an online portal or feedback form that instructs the customer on what information is needed. This allows for cataloging the information so it can be tracked and analyzed.

Whether the furniture you are shipping is fully assembled going through an LTL supply chain or a knock-down furniture kit shipping small parcel, BoldtSmith Packaging has the experience and resources to provide optimized packaging solutions.

This article originally appeared here. Republished with permission.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

The Importance of Packaging Optimization in Supply Chain

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Packing is usually considered as one of the most boring, least impactful aspects of a supply chain. With logistics, transport methods, and keeping track of your freight shipments, why should you bother with packaging optimization in supply chain? Well, as it turns out, it can have some surprising benefits, especially when appropriately tackled. So, with that in mind, let’s take a more in-depth look into the importance of packing in supply chain management.

Packaging optimization in supply chain management- why it matters

Before we go over the importance of packaging optimization, we need to outline what packaging entails clearly. If you are new to supply chain management, you might think it is merely putting items into boxes. But, in actuality, there is much more to packaging once you get into it. There are various materials to consider, be it their cost or sturdiness, not to mention packaging design for branding and eco-friendliness of your packaging procedures. Therefore, even in a couple of sentences, we can give you an idea that packing is a significant issue and how useful it can be to optimize it with due care.

Safety measures

Safety should always be your primary concern. Whether you are dealing with something private or business-oriented, safety is paramount. With this in mind, you’d be hard-pressed not to consider packaging optimization. By handling your packing procedure, and everything that goes with it, you can ensure that your supply chain is safe. People often forget that proper packing requires in-depth knowledge of the whole chain. It is precisely because you know where the shipments are headed that you should do your part in preparing them.

It often happens that people pack and repack shipments during the supply chain. This is primarily because they are only worried about keeping the shipments safe during their segment. Tackling packing like this is not only cost-inefficient but also potentially dangerous. Since people mainly focus on short-term safety measures, they are unlikely always to follow the necessary packing procedure. By dealing with the whole aspect of packing in one go, you can use the right packing supplies and tape, label, and log items as necessary. While doing so might seem minute, it will play a prominent role in how safe your shipments are.

Cost optimization

As we have already mentioned cost optimization, let’s elaborate more on what role packaging optimization has in it. If you allow people who are not interested in cost optimization to pack your belongings, they will do a poor job. Sure, they will ensure the safety of your items. But, they hardly have the incentive to use packing supplies adequately. It results in half-packed boxes, poorly structured shipments, and considerable unused space. These are the main things that you need to avoid. Now, you might think that these things don’t add up as much. But, think again.

By handling all of these aspects with due care, you will optimize your packaging to the utmost cost efficiency. Keep in mind that even a slight increase in optimization can end up saving you a lot of money. All of the aspects that we have mentioned pile up, especially in large supply chains. So, the more of them you take care of, the better off you’ll be. In fact, we wouldn’t be surprised if you end up astonished at how much money you were wasting with improper packing.

Brand recognition

There is hardly a marketing strategist out there that won’t tell you about the importance of brand and brand placement. If you plan on running a decent marketing strategy, you need to develop a brand and use it in every facet of your business, from your online presence to your vehicles, worker uniforms, and even packaging. There is a reason why companies like Amazon invest in their packing supplies. Branding on them ensures that your customers see your logo, even before opening their products. Not to mention all the people that will be handling your boxes during the shipping procedure. So, all in all, know that investing in branded packing supplies is definitely worth the money spent, especially if you ensure that they are of top quality and that your packing is overall stellar.

Eco-friendliness

Having eco-friendly supply chains is becoming more and more necessary. The current situation requires us to do whatever necessary to protect our environment. Luckily, this is another aspect where packaging optimization has a role. True, it won’t have as big of an effect as utilizing carbon capture or using more eco-friendly fuels. But, the impact it does have is nothing to scoff at.

Using eco-friendly supplies will go a long way in protecting the environment and ensuring low waste. After all, the biggest problem with packing is that we use non-degradable materials like plastic and styrofoam and routinely throw vast amounts of it away. This has to change, and modern supply chains do whatever necessary to do so. Modern materials allow for the same safety while being biodegradable. At the same time, eco-conscious packing procedures ensure that we waste as little as possible.

Final thoughts

All things considered, you should have a decent idea of the importance of packaging optimization in supply chain. Without it, you not only risk losing money but also endangering your items and having a substantial carbon footprint. Know that even a small change in your packing procedures can have a long-lasting effect on your finances and the environment. So, invest your time into looking into it. Once you do some research, you will learn that we’ve come a long way from run-of-the-mill cardboard boxes. Modern packaging solutions give you a lot of freedom to explore how to make packaging as optimized as possible. So, do your best to make the most out of them.

______________________________________________________________

Amanda Anderson has been a relocation coordinator for various moving companies and marketing advisor for Capital City Bins. During her 15 years of service, she has learned a thing or two about shipping and how to prepare for it safely. Now she helps both professionals and amateurs handle shipping with due care.

packaging
Archives, Global Shippers 101, Global Trade Daily

Product Damage – Carrier Issue or Packaging Issue?

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We recently had a customer that requested our expert opinion on why a product they shipped became damaged. Was the damage because of carrier handling or that the packaging was not designed to survive the carrier’s supply chain?

It was an interesting question that we have seen previously with other customers. In this article, we are going to dive into some of the details as to how to answer this question!

Know your Supply Chain

The first step in developing a packaging solution is understanding the supply chain through which your product is shipped. This directly impacts the packaging design and testing protocols required to verify a concept. A product shipping on full truckload (FTL) on a company’s existing fleet in comparison to less than truckload (LTL) requires completely different packaging solutions. Too often do we see a customer using the same concept that works shipping FTL but is damaged in an LTL environment and the blame is put on the carrier.

A few questions that are helpful when evaluating a supply chain are outlined below:

-How is the product stored and handled internally prior to shipment?

-What machinery is used to transport the packaged product?

—Fork truck? Hand truck? Clamp truck?

-If palletized, does the pallet allow for the available machinery to be utilized without special attachments or modifications?

—Example: Fork truck tine extensions

-How many hubs will the packaged products go through if shipping LTL?

-What hazards are to be expected during shipping and handling?

—Vehicle vibration, forklift handling, horizontal and vertical impacts, drivers clipping curb, etc

Understand Your Packaging Budget

All companies seek to have 0% damage during shipping but there is a balance between product damage and packaging-related costs. It is important to build an expected budget around packaging material, freight, and labor costs. Investigating a $100 packaging solution when the product margin only allows for $10 is an incorrect path to explore. Having this information upfront narrows down the choices allowable for your specific product.

Designing to the APE System

Creating a packaging design meant to survive an FTL or LTL supply chain can be broken down into what BoldtSmith Packaging references as the APE System. Below is a breakdown.

Allow: This references allowing the expected hazards to occur and design the packaging to survive these hazards. For example, we know that shipping a 48”x40” pallet with a flat top surface has a high likelihood to have products stacked on top of it through an LTL supply chain. Knowing this is an expected hazard and allowing it to happen requires packaging needs to be designed to survive this. Pushing back on the carrier when another pallet is stacked on top of your product is not understanding the expected hazards in an LTL environment.

Prevent: This references preventing damage that have a high likelihood of happening to create product damage. For example, it is to be expected that a pallet that has the product overhanging 2 inches will likely be impacted by another product/pallet or forklift. For this reason, underhang is utilized to prevent this being an issue from creating product damage.

Eliminate: This references eliminating the expected hazards to occur. For example, a 96”x48” pallet is used to ship a product that is extremely heavy on one end and light on the other. This poses two issues with handling. The pallet cannot be a 4-way entry stringer pallet due to the risk of the pallet tipping over when lifting from the openings on the 96” dimension. Also, the pallet should only be lifted from the heavy end, for this reason, the pallet would only have an opening on that side. This essentially turns the pallet into a 1-way entry and eliminates the forklift operator from unintentionally causing damage.

Testing

After the designs are created, testing needs to occur to verify the design and materials can survive the intended supply chain. This thorough investigation can be broken down into two categories.

Lab Testing: Utilizing a lab gives a great baseline using an established testing protocol such as ISTA 3B for an LTL supply chain. It is recommended after passing one of these protocols to complete a more thorough verification by completing ship tests.

Ship Testing: Completing ship testing provides the data to have a high confidence level in a specific packaging design. Some of the hazards that occur during shipping are difficult to replicate in a lab environment and for this reason, ship testing provides additional data. It is recommended to be onsite prior to the product shipping and also onsite when the customer receives the product.

It is recommended to create reports and documentation for both lab and ship testing. This information can be sent to the carriers if damage does occur. This provides evidence to the carriers that the design was created and verified to survive the intended supply chain.

Conclusion

It is easy to point the finger at a carrier if your product is damaged during shipping and certainly unexpected hazards do occur. However, it is important to follow the outlined system in how to create and test a packaging solution that allows your carriers to be successful.

_________________________________________________________________

Dustin Smith is the Co-Founder and CEO of BoldtSmith Packaging.  BoldtSmith Packaging is a recognized leader in packaging design, testing, and optimization. Dustin can be reached at Dustin.Smith@boldtsmithpackaging.com

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Archives, Global Logistics, Global Shippers 101, Global Trade Daily

Protecting Your Product: 10 Necessary Shipping Steps for Your Business

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Packaging is essential when it comes to your product, for both protection and presentation. Consumers expect to receive a certain quality of packaging with their product, especially as the popularity of social media reviews and unboxing videos continues to rise. Not only does the packaging need to keep your product intact throughout the shipping process, but it needs to be easy to reuse if a customer wants to return the purchase and must safely ship it back.

To protect your deliveries, you need to utilize high-efficiency shipping materials customized to the product size.

1. Pack Efficiently

The efficiency of your packing determines the state of your product when it arrives at its destination. There are important questions to consider when selecting the box size. How fragile is the product? Does it have sharp edges? The product should fit in the box easily without leaving much airspace around it. Consider air pillow packaging to secure the product snuggly and limit excess space in the box. At the same time, you must avoid over-packing the box or container with too much cushioning. Cushioning can include:

-Airbags

-Bubble wrap

-Packing peanuts

-Foam or cardboard inserts

Avoiding wasted space in the box enhances efficiency and helps customers receive their purchases in good condition.

2. Choose the Right Packaging Materials

For products that require cushioning, it’s critical to choose packaging materials that are specialized for protecting your specific product. Styrofoam peanuts might work for most shipments, but more fragile materials might need to be bubble wrapped or supported through air cushions.

If the product needs to be kept cold, gel packs are an affordable and effective alternative to dry ice. It’s also essential to choose a high-quality tape to seal the box. You need industrial-strength, water-activated and pressure-sensitive tape, so your parcel doesn’t split open during shipment.

3. Select the Right Box

The box you use for shipping goods is directly responsible for how protected and well-presented the product is on arrival. A new or gently used box is essential for maximum security, and it needs to be structurally designed for the specifications of your product.

Customized boxes specific to your product are a worthwhile investment for secure shipping and intact delivery. Consult experienced shipping and packaging experts to determine the cardboard grade and fluting that best protects your products.

4. Add More Wrapping for Longer Distances

Generally, the farther your package is traveling, the more protection it needs. If you’re shipping internationally or to a far-off domestic location, there are more opportunities for your package to be dropped or mishandled. Adding an additional layer of wrapping, ensuring the product is secure in the box and using extra tape can make sure the product arrives safely.

5. Don’t Wrap Items Too Tightly

While a secure fit is critical to keeping your product safe in the box, it’s vital to avoid packaging items too tightly. Avoiding tight packing is especially important if the items are fragile glass or soft and impressionable. Too much pressure on the product can cause the product to break, crack or alter its shape. Items should be secure but devoid of tension.

6. Wrap All Items Separately

If the package you’re shipping contains multiple products, you’ll need to wrap them separately to avoid their shifting within the box during transit. Individual wrapping and cushioning should result in your products being gently secured within the box so they can’t move around or hit each other with any force.

If any items in the package contain liquid, provide a layer of plastic packaging around all items to avoid moisture damage if anything leaks or breaks.

7. Reduce, Reuse, Recycle

Using packaging that is eco-friendly and made from recycled materials or can be reused in the future for your shipments has various benefits for the company and the customer.

Consumers are likely to support and shop again at businesses taking steps to reduce their environmental impact. As a company, there can be an initial cost to change your packaging habits. But using recyclable packaging reduces greenhouse gas emissions and saves on raw materials and manufacturing energy expenditure.

8. Design Packaging for Returns

Occasionally, customers may be dissatisfied with a product and need to ship it back to your business as a return. Creating packaging that can be unpacked and repacked enhances the consumer experience and ensures the product will still be intact when the product returns to you.

9. Label Your Package Clearly

Successful shipping requires a successful delivery. No matter how well you pack your product, if the labeling isn’t clear, then it might not arrive at the desired destination in one piece or at all.

If the package’s contents are delicate, mark them as fragile on all sides so the parcel will be handled with extra care. For big or small businesses who ship many fragile items, investing in a stamp to mark all boxes going out of the facility as fragile is good practice.

10. Parcel Insurance Coverage

No matter how well you package and protect your products before shipping, things are ultimately out of your control once it’s out of your facility. Consider insurance if you are frequently shipping fragile items or products that are not easy to replace. There is always a possibility of goods getting lost or damaged in transit, so having a financial security net can benefit your business.

In addition to adequate insurance coverage, consider implementing package tracking. Understanding tracking software and how technology is improving last-mile logistics gives you an element of control over the transport of your products and helps you ensure your goods are being delivered on time.

Final Thoughts

Human error is a significant factor when considering safety in shipping. There is no way to eliminate the risk involved as long as people are handling the packages. That’s why mitigating the amount of damage done to a product is necessary to consider before shipping.

As a business owner, you must decide how to package goods with these various elements in mind. Online consumers have high expectations regarding the condition of the product on arrival and the expediency of its delivery. The right packaging materials and custom cardboard boxes can mitigate many risks involved with domestic and international shipping to improve customer satisfaction and retention.

___________________________________________________________

Cory Levins is the Director of Business Development for Air Sea Containers. 

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Archives, Global Logistics, Global Trade Daily

Reducing Waste and Optimizing Your Supply Chain

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Waste is, well, it’s a waste; and if you’re trying to optimize your supply chain, it can be an expensive waste. There are a lot of sources, both internal and external, which can create waste in your supply chain, like process inefficiencies, communication gaps, lack of or delayed responses, and even errors in ordering or procurement. Whatever the reason, they often end up becoming an enormous waste of time and money, which can be drastically reduced by making supply chain processes more efficient. In fact, most successful companies focus heavily on decreasing waste and reducing wasteful processes.

One of the most effective methods for reducing waste is developing lean methods for supply chain management.

How to reduce waste and optimize your supply chain

Analyze Product Design

One way of not just reducing waste, but also optimizing your production is to examine and re-evaluate your products’ design. Identify any areas or methods to reduce raw material use or replace expensive materials with cheaper ones. If you can shave off small costs, they might result in substantial savings.

You should also evaluate your product packaging options and see if there’s any way you can use cheaper materials.

Manage Resources

Apart from just looking at just using cheaper materials, you should examine each of your production processes to identify which ones are generating waste. Redesign processes that are creating non-recyclable or non-reusable waste. Even recyclable waste should be assessed and you should take the cost of recycling into account.

When you’re optimizing processes, the cost of implementing changes may seem high, but the cost of the waste, as well as associated handling, disposal and even recycling, can add up over time.

Select the Right Equipment

On the topic of handling and disposing of waste, having the right waste management equipment can save time, money and a lot of hassles. We’ve made a lot of advancements in waste management technology and equipment. Trash compactors are a great example of simple solutions to make managing and handling waste much more efficient and save a lot of money over time.

It’s very important to first know how much and what kind of waste your supply chain produces, so start with that. There are a host of solutions, some with very specific uses which you might benefit from.

Improving Production Quality

Quality control is often focused on finished products, but one of the goals of quality management should be minimizing raw material wastage. If you optimize your manufacturing processes to reduce overall waste, it might have a two-fold advantage of increasing the number of goods that clear quality inspection.

Employee Feedback

The employees who have the task with the actual production will probably have a much better idea of where waste is being produced and the challenges with managing it. They could also provide a lot of feedback on how best to reduce waste and optimize waste management.

You can create focus groups tasked with identifying and optimizing waste since this kind of collaborative approach tends to have effective results.

Inventory Management

Lean approaches like JIT (Just-in-time) logistics can help you get closer to a 100% perfect-order measure. Apart from reducing order errors, it can also help you cut down tremendously on a lot of associated costs of inventory management like warehousing, utility costs rentals, and even insurance and taxes.

However, placing multiple orders may increase transport costs and your vendors might charge higher rates if each order is of a lower value, so weigh the pros and cons carefully.

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Erich Lawson is passionate about saving the environment by effective recycling. He has written a wide array of articles on how modern recycling equipment can be used by industries to reduce monthly garbage bills and increase recycling revenue. You can learn more about environment savings techniques by visiting Northern California Compactors, Inc blog.

international shipping
Archives, Global Shippers 101, Global Trade Daily

How to Save Time and Money With Your International Shipping

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Whether you are just dipping your toes into international shipping, or you are a veteran who wants to update the firm’s processes, there is always more you can do to make your shipping practices more streamlined and efficient. After all, if you are going to compete with local players, then you need to be offering the best deal possible on international shipping. How you can do that is going to be unique to your firm, but some general practices can help.

From managing customer’s expectations of speed to optimizing your packaging, investing in cargo insurance to getting help when you need it, read on to learn how to save time and money with this guide to international shipping.

1. Balance your need for speed.

Generally, the quicker you want your shipments to be delivered, the more expensive the shipping is going to be. Therefore, it is essential that you balance your need for speed with your budget and your customer’s expectations. Customers expect reliable delivery times, not necessarily the fastest possible time, and in many cases, they are happy to wait a couple of days to bring costs down.

Therefore, your best strategy is to provide them with a variety of delivery options to choose from. That way, they can decide how much they are willing to pay and how long they can wait for their goods. Keep in mind that for most companies, the goal is to limit the number of individual shipments and instead maximize the amount of cargo shipped. This generally brings about the most efficient results.

When organizing international shipping for your customers, it is essential that you make their experience as pleasant as possible. One of the best ways to do this is by providing them with accurate shipping information that keeps their expectations in check.

2. Optimize your packaging.

One of the most overlooked ways to reduce international shipping costs is to optimize your packaging. The ideal packaging keeps your products safe and secure while also reducing shipping weight and box size so as not to receive additional charges. In order to find the optimal packaging for your goods, you need to take different factors into consideration, including a product’s height, weight, and volume.

From there, look for boxes that fit your product while leaving minimal wasted space. Additionally, choose lightweight packaging materials that still protect your items. Depending on what you are shipping, you may want to consider utilizing standard sized packaging that is provided by your freight provider, as this will remove your firm’s requirement to source custom box sizes.

When planning your packaging strategy, it is vital to think dimensionally, which means knowing the length, width, and depth, which together comprise the dimensional weight of your goods. If you are shipping in bulk, keep in mind that you want your packages to be shaped so that they can be expertly arranged to fit into the smallest size carton.

3. Invest in cargo insurance.

Just as you have insurance for your home, car, and health, it is also essential that you have coverage for your cargo. Unfortunately, it only takes one international shipping incident for your firm to feel adverse effects, which is why cargo insurance is so important. By getting this insurance, you will be covered for damaged goods, cargo theft or loss in transit, and any other unforeseen events that affect your products.

While many carriers and freight forwarders offer liability insurance, this is generally limited to a specific monetary amount and has many exclusions. Therefore, you don’t want to solely rely on this liability insurance because it usually is not enough to cover the costs of severe loss or damage. On the other hand, cargo insurance will render you a more comprehensive level of protection, ensuring you can recover the full value of lost, damaged, or stolen goods.

Having cargo insurance is highly recommended because it provides you with greater peace of mind which, in the long run, makes for a more efficient and streamlined international shipping process. The last thing you want is to be worried about your firm going under because something happens to a shipment that is out of your control. Do your company a favor and invest in cargo insurance.

4. Get help when you need it.

No matter what size your company is, what products you are shipping, or whether you are moving individual parcels or sizable cargo, there is no need to do it all on your own. After all, there are experts in these fields who have the knowledge and experience to help you reduce your costs and the number of resources you have to spend on shipping logistics.

By opting to work with an online freight forwarder, such as Shipa Freight, you are not only setting yourself up for shipping success now but also in the future. From generating an online quote to scheduling your shipments and then tracking them, an online freight forwarder provides you with all the tools you need to make your international shipping processes as streamlined as possible.

For example, as an individual, it can be challenging to locate the ports and other destinations that you need, but a high-quality freight forwarder can find them for you. Additionally, you will be personally guided by a representative throughout the process so that you can be assured that you are choosing the best options for your firm. When working with Shipa Freight, you will always be treated as a partner, not a commodity.

Final Thoughts

When it comes to international shipping, if you want to come out on top, then your firm must incorporate as many cost-saving and time-effective measures as possible. By including these steps into your international shipping strategy, you will be well on your way to having the most efficient shipping process possible.

What do you think are the most effective steps for reducing costs and time related to international shipping? What strategies does your firm use?

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As Chief Product Officer for Shipa Freight, Paul Rehmet is responsible for translating the vision of Shipa Freight into an easy-to-use online freight platform for our customers. Formerly Vice President of Digital Marketing for Agility, Paul managed Agility’s website, mobile apps, content marketing and online advertising campaigns. In his 25-year career, Paul has held various technology leadership positions with early-stage startups and Fortune 500 companies including Unisys, Destiny Web Solutions, and US Airways. Paul has a Masters in Software Engineering from Carnegie Mellon University and a Bachelor of Computer Science from Brown University. Paul is based in Philadelphia.  

GSO
Archives, Global Trade Daily, News

Western U.S. package delivery company GSO completes brand conversion to General Logistics Systems US, Inc.

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Three years after West Coast package delivery company GSO was acquired by international delivery group GLS, the company has officially changed its name to General Logistics Systems US, Inc. (GLS US).”

“GLS is an international company with 30 years of experience and allows me to proudly say, we now have global experience delivered locally,” said GLS-US CEO, Randall Swart. “Over the past year, GSO has gone through many exciting changes, and we remain committed to providing the best service to our valued customers. In 2020 we will celebrate 25 years doing what we love — delivering packages as an extension of our customers’ businesses.”

Swart said the company looks forward to using the knowledge and experience of the GLS Group to invest in new technologies, new facilities, new vehicles and future growth to support customers’ growing shipping needs. “We are excited about the potential to accelerate our growth and presence in the market,” he said.

GLS US, which serves California, Arizona, Nevada, New Mexico, Oregon, Washington, Idaho, and Utah, is converting all trucks, drop boxes and supplies to GLS.

GLS acquired California-based GSO in October 2016. Since then, the two companies have worked seamlessly to integrate systems. The conversion to GLS reflects shared values between the two companies – reliability, security, transparency, flexibility, and sustainability. Customers started seeing the GLS brand in the Northwest when the company bought Seattle-based Postal Express in 2017 as part of a focused geographic expansion.

GLS US continues to expand and provide unmatched Priority Overnight, Ground and Freight delivery services throughout the Western United States. It has 2,300 U.S. employees, 48 depots, two hubs, and a customer service center to support more than 20,000 customers with a high-quality level of service including later pickup times, earlier deliveries, and proactive package tracking – all at competitive rates.

“Throughout the years, our service offerings and technology have evolved based on the needs of our customers,” Swart said. “We are committed to continue making improvements to ensure the best shipping experience possible. We’re growing quickly and are committed to living up to our reputation of providing all our customers with the same excellent delivery and customer service standards we’ve built over the years.”

GLS US will continue to offer customers an overnight delivery footprint unmatched by the national carriers with significantly reduced transit times across the West Coast using its ground and freight services. “We look forward to the opportunities that lie ahead for our customers and our company,” Swart said.

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GLS, General Logistics Systems B.V. (headquartered in Amsterdam), provides reliable, high-quality deferred parcel services for over 200,000 customers, complemented by logistics and express services. Through organic and inorganic expansion, the Group has grown to provide network coverage of 45 countries via wholly owned and partner companies, and it is globally connected via contractual agreements. Seventy central transshipment points and about 1,400 depots and agencies are at GLS’ disposal. With its ground-based network GLS is one of the leading parcel service providers in Europe. In the financial year 2018/19 GLS achieved revenue of €3.3 billion. For more information about the Western U.S. parcel and freight delivery services offered by GLS, visit www.gls-us.com.

Archives, Global Trade Daily, Special Reports

Supply Chain Professionals: Unilever

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Unilever is no rookie when it comes to competitive supply chain management strategies, as the company highlighted close to $34 billion for total spend in their May 2018 Supply Chain Overview report. Within those figures, logistics and operations made up 44 percent of the total cost with marketing and business services closely following at 34 percent. The report also revealed the regions heavily involved with the total spend was split between Asia (32 percent), Europe (30 percent) and the Americas (27 percent), which all together made up 89 percent. The remaining 11 percent were split among regions such as the Middle East, Russia, Ukraine, Belarus and Africa. These numbers make it very clear that Unilever boasts a significant global presence and shows no signs of slowing down.

The company has also been making news headlines with efforts toward waste-elimination, which creates an environment supportive of cost reduction and maximizing the use of packaging. Through what’s known as the Loop, premium packaging that is delivered directly to the customer is returned and refilled. Aluminum and glass were among the materials announced in the waste-free shopping system. The goal is to reduce the number of packages being thrown away. Global brands such as Dove and AXE confirmed they will test the Loop system with a stainless steel designed to last for at least 100 cycles, according to Unilever.

“We want to put an end to the current ‘take-make-dispose’ culture and are committed to taking big steps towards designing our products for re-use,” says Unilever CEO Alan Jope. “We’re proud to be a founding partner of Loop, which will deliver our much-loved brands in packaging which is truly circular by design.”

Unilever is a prime example of what it takes to sustain growth when the environment isn’t willing to cooperate. The company released information revealing that 2018 proved to be successful with total growth of 3.1 percent, minus spreads and July Argentina growth. Argentina’s hyperinflation was to blame for the exclusion.

“Looking forward, accelerating growth will be our number one priority,” Jope vows. “With so many of our brands enjoying leadership positions, we have significant opportunities to develop our markets, as well as to benefit from our deep global reach and purpose-led brands. We will capitalize on our strengthened organization and portfolio, and our digital transformation program, to bring higher levels of speed and agility. Strong delivery from our savings programs will improve productivity and fund our growth ambitions.

“In 2019 we expect market conditions to remain challenging. We anticipate underlying sales growth will be in the lower half of our multi-year, 3-5 percent range, with continued improvement in underlying operating margin and another year of strong free cash flow. We remain on track for our 2020 goals.”