Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
In DC operations across America, "guesstimates" may be going the way of the dodo. Over the last couple of years, operations managers have had to pay much closer attention to the size of their outgoing shipments.
The new emphasis on precision is a response to parcel carriers imposing and enforcing so-called "dimensional weight" rules. Under those rules, shipping charges, particularly for large, lowdensity packages, are more likely to be based on a parcel's "dimensional" weight—a computation that includes its length, width, and height—than on its actual weight. Rate a package incorrectly, and you're likely to be hit with charge-backs and penalties.
To avoid those fines, many shippers have turned to dimensioning, or "cubing," systems. As a result, these devices, which use sensors or lasers to automatically gather dimensional and weight data, are fast becoming fixtures on shipping docks nationwide.
That same equipment, it turns out, can contribute to efficiency on the receiving dock as well. In fact, dimensioning systems were initially developed for the back end of the warehouse. Here, the systems are used to record the dimensions of individual products or cartons, as opposed to entire shipments, for use in storage, or "slotting," assignments. Capturing accurate dimensions of all incoming products can help users make slotting decisions that lead to more efficient use of DC storage capacity, says Steve W. Trommer, vice president of Trommer & Associates, a consulting firm that specializes in facility design and material handling.
Of course, slotting decisions involve a lot more than determining the most efficient use of storage space. Factors such as how quickly SKUs turn and what products tend to ship together are all essential to good slotting decisions.
But accurate physical measures are nonetheless an important part of those decisions. And it's not a static issue. Products change, and so, too, does product packaging. If the facility fails to capture those changes, DC slotting efficiency will diminish over time. Trommer says that's something DC managers often overlook when considering possible causes for declining productivity. "When operations managers come to us, they may be looking at inventory quality, but they have never re-profiled their material handling system," he says. "They may be using a six-foot space for a product that now comes in a smaller volume or in less than pallet loads."
Quick returns
Trommer advocates that companies invest in dimensioning systems like the Cubiscan line of dimensioning systems from Quantronix or similar tools sold by Mettler Toledo, arguing that buyers can expect a quick return on their investment. That's largely a result of labor savings, he says. To illustrate his point, Trommer cites slotting projects his company completed for two customers with similar SKU profiles. One, using a cubing tool, captured the cube and weight of 721 SKUs in three days. The other, with employees using tape measures, needed three weeks to capture the dimensions of 750 SKUs.
"A cubing device can save an enormous amount of time measuring a large number of items," says Randy Nielsen, vice president of Quantronix. He says the company's Cubiscan 100 model, for example, can capture the dimensions of more than 100 items an hour.
Trommer further argues that dimensioning systems are much more accurate than workers measuring by hand. Tape measure readings are subject to interpretation, he explains, and even slight variations in readings can have a big effect on productive slotting. "If you are off by a half inch," he says, "that can have a large impact on the days of inventory in a flow module."
Current cubing systems offer accuracy of two-tenths of an inch or better, manufacturers say. Some of the systems aimed at the distribution and warehousing markets have even closer tolerances, with some small devices offering accuracy down to one one-hundredth of an inch for products like books and CDs. Nielsen says that for warehousing and distribution applications, accuracy to one-tenth of an inch or better is essential.
The best systems for slotting
For applications like capturing data for slotting, static systems, as opposed to inmotion systems mounted over conveyors, appear to be the tool of choice. Manufacturers offer a range of those products, from devices aimed at capturing data from items as small as CDs up to pallet dimensioners.
The systems also have the advantage of being user friendly, Nielsen says. "Our static systems are user installable and user maintainable," he says. "The customer can open the shipment, unpack the device, load software to its PC, plug it in, and away they go. You can be up and running within an hour."
As for the procedural side of the dimensioning process, Trommer says the easiest way to capture dimensional data is to measure carton sizes as they arrive. But that leaves the question of what to do about slower movers that may not arrive during the time period set for a re-slotting project— say, a month or so.
Trommer says in those cases, the easiest thing to do is go out and capture data at the items' current locations. Many of the cubing devices on the market today are designed to mount on portable carts for that reason. The mobile cubing systems run on battery power and can feed information as it is captured into a PC on the cart or, through a wireless connection, directly upload it to a warehouse management system or an enterprise resource planning system, he says.
Most modern WMS and ERP programs have built-in fields for capturing weight and dimensional data, he adds. "If you have a legacy system, you have more of an issue. You may have to go back to the programmers."
Nielsen expands on that point: "The whole goal is to eliminate or, in some cases, minimize the work the IT department has to do to adjust or tweak the WMS. We've taken a look at a lot of WMS, TMS, slotting, and manifesting software and come up with software systems that are virtually plug and play. There will always be some exceptions, but very few."
Standard equipment?
Right now, cubing systems are generally considered optional equipment for warehouses, but that might be about to change. The ability to capture and upload dimensional and weight data quickly may become an imperative for DC operations. "Industrial engineers are making it mandatory," says Jerry Stoll, marketing manager for Mettler Toledo, a Switzerland-based manufacturer of scales and cubing equipment. "Companies are more stressed to save pennies."
Stoll adds that precise dimensional information can prove useful for purposes other than slotting. For instance, accurate size and volume information also helps managers allocate operational costs to products based on the space they occupy in the DC.
But whatever the end use, one thing remains the same: The first step is taking the measure of the goods.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.