Eyebrow pencils, jars of exfoliating cream and skin cleanser, tubes of lipstick, vials of perfume, whatever the skin care or fragrance product, members of Barry DiGiacinto's crew at Clarins USA have shipped it. And they've shipped a lot of it in recent years. Thanks to steadily increasing sales, volume at the company's Orangeburg, N.Y., warehouse has reached 1.3 million cartons annually. But in the race to keep up with demand, the warehouse, like so many others around the country, has also shipped a lot of another, unprofitable commodity: air. Or more precisely, air and dunnage.
That's a common problem. In a typical warehouse operation, pickers on the floor have to make on-the-spot decisions on what size carton to use, relying more on guesswork than scientific data. Invariably, they choose boxes that are too large and fill up the space with dunnage. Their companies end up overpaying for packaging. They also end up overpaying for freight.
So when Clarins USA began to automate its warehouse a few years back, DiGiacinto, who is the company's director of applications development, brought up the packaging issue with the consultant hired to manage the project. That consultant, Bar Code Specialties of Huntington Beach, Calif., looked at the operation and quickly sized up the problem—an absence of accurate product dimensions. "No matter how sophisticated our software was," DiGiacinto points out, "if the raw data about the product height, length and width was wrong, we couldn't pack correctly."
The solution proposed by Bar Code Specialties turned out to be somewhat revolutionary for the warehousing industry: dimensioning equipment. For Clarins' operation, the consultant chose the CubiScan 100 unit from Quantronix. CubiScan units (there are eight models in all) gather dimensions and weights for both cubed and non-cuboidal objects and feed the data into a Windows-based software package. They come in both static and inline varieties, making them suitable for a variety of applications. "Many of the other automated solutions on the market were designed for 'in-line' dimensioning, which was not a fit for us," DiGiacinto notes.
The CubiScan's operation is nothing if not straightforward. The first time a new product enters the warehouse, the receiving system flags it as not having a weight or dimension on file, prompting the receiving clerk to run it over to the unit for processing. The clerk places the item on the machine and presses a button. Moments later the results are displayed, along with a prompt asking the user to accept or reject them. Once the user has accepted the displayed results, the software posts the data to a file on the company's mainframe system. This file then feeds Clarins' Item Master and pick/pack/ship systems.
With the new equipment in place, Clarins has been able to re-dimension its entire product line—about 3,500 SKUs. That may sound like a lot of effort until you consider the payoff. Clarins calculates that it's been able to ship 21.2 percent more units of product in 13.7 percent fewer cartons for a net increase in pick/pack efficiency of 34.9 percent.
The long and short of it
Dimensioning equipment has been around for close to 15 years, but it's only now gaining traction in the warehousing industry. "This is still a niche market," admits Randy Neilson, director of sales and marketing for Farmington, Utah-based Quantronix. "But the equipment has come a long way and has become much more reliable than it was originally."
As Clarins discovered, there are two basic types to choose from: static and in-line. Both depend on non-contact sensing tools to scan the physical dimensions of a package, such as lasers or of late, cameras. Which one is used largely depends on the application.
Static equipment, recommended for low-volume operations and applications that don't use conveyor systems, can be moved throughout the DC when dimensioning is required in different areas. In-line dimensioning tools are better suited to operations that use conveyor systems and process a variety of cartons and irregular-shaped items. According to Don DeLash, vice president of sales and marketing at Accu-Sort Systems of Telford, Pa., in-line systems can measure carton length, width and height accurately to within a quarter of an inch. "If it's measuring an irregular package, it will determine the smallest sized box that can be used," he adds.
In-line systems are available today with laser and/or vision technology. "Right now, the lasers are more accurate and more advanced," says DeLash. "But the cameras allow you to capture bar codes and written information in addition to dimensions. As the camera technology improves, it will eventually replace the laser systems."
Pick/pack operations like Clarins USA's typically favor static systems, while operations that require a lot of sorting usually opt for in-line systems. "The static systems can help with put-away decisions, to set up picking stations and to send the right cartons to picking and re-packing stations," says Neilson. That eliminates the need for pickers to make judgment calls on the size and number of cartons needed.
Both types of dimensioning equipment integrate with warehouse management systems (WMS) or in-house software programs, and interfaces usually come standard with the equipment. Quantronix, for instance, provides an interface to a variety of systems, from WMS to slotting software. "This is a critical factor in effective usability," says Neilson. "If you can't interface, the data won't be very useful."
Happy returns
Part of the attraction of dimensioning equipment is its relatively quick return on investment. Though the payback period varies from application to application, early reports indicate that users are recouping their investment in a matter of months. "In warehouses, most often the savings come in shipping with small-parcel carriers," says DeLash. "The carriers compare weight and volume and then charge the higher of the two. With accurate information, shippers don't end up paying too much. In these applications, you can see an ROI in under a year."
Using the smallest possible cartons also allows more efficient trailer loading, adding to the savings. "If you're using the dimensioning equipment in conjunction with a good software system," says Neilson, "you can manage your space more efficiently because you're working with good data."
But even in a market where companies are quickly becoming conditioned to expect a speedy ROI, Clarins feels it was able to pull off a coup. "Once we had factored in all the associated cost savings," DiGiacinto reports, "we found that the ROI was just three months."
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.