Gathering dimensional data has traditionally helped with slotting, picking, and order filling. But there are applications on the shipping side as well.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Can shippers who determine for themselves the weight and dimensions of every shipment or load they tender save on freight charges? The short answer is maybe. A lot depends on the accuracy of the information that is gathered and how it is applied.
Traditionally, dimensioning systems have been used for various applications in the warehouse. For example, incoming products are routinely measured as they are received. Knowing how big a product is and how much it weighs allows for better utilization of storage space. It also helps with the slotting of products in picking areas. Managers need accurate dimensional data to make sure they've allocated enough room for a product to assure adequate stock—but not so much that it increases the distance between products within the pick zones.
But it also turns out that the same dimensional information collected for storing and slotting can be used in shipping applications. The experiences of two companies, Monoprice and Interline Brands, are testament to that.
NO MORE 'FAT FINGER' ERRORS
Monoprice is a direct-to-consumer retailer of electronic products. Its distribution center in Rancho Cucamonga, Calif., utilizes a CubiScan 125 dimensioning system manufactured by Quantronix Corp.
The CubiScan uses lasers to measure the length, width, and height of each product when it is first introduced into the facility. It also weighs each item as it is measured.
Before the arrival of the CubiScan, this process was painstakingly performed by hand, which took considerable effort with some 4,500 stock-keeping units (SKUs) typically on hand (and another 10,000 SKUs in the database).
"In the past, we often had errors, as a worker would sometimes 'fat finger' a manual entry," says Erik Entrikin, operations manager for Monoprice. "Now, once we receive a container from overseas, we dimension and weigh every new SKU with the CubiScan to accurately plot our slotting."
In addition to using the data for storing and slotting, Monoprice uses the information on each SKU to determine the best packaging for the item once an order is received. "We use the cubing information to find out what size of box or envelope will fit the product best," says Entrikin.
Beyond that, Monoprice has found that it can use the weight and dimensional data it has already collected to achieve freight savings. In addition to using parcel and less-than-truckload (LTL) services, the retailer ships full truckloads from the Rancho Cucamonga DC. When workers go to load trucks, the weight and dimension information is used to determine how to best fill the truck.
That's good business practice, says Chuck Clowdis, managing director for transportation advisory and consulting services at IHS Global Insight, an industry research and consulting firm. "You don't want to leave holes in trailers," he says. "The idea is to fill the trailer. The higher and tighter you can stack a trailer, the better. Tighter stacking can also reduce product damage."
"Dimensioning helps you to better understand your freight," adds David Ross, managing director and transportation analyst for investment firm Stifel, Nicolaus & Co. "Understanding your dimensions allows you to redesign packaging to save money. You can also build pallets in a different way to save space in the truck."
A BETTER CUSTOMER EXPERIENCE
Another company that's using cubing data for a variety of applications is Interline Brands, a Jacksonville, Fla.-based supplier of maintenance, repair, and operations products. These products, which include parts for janitorial and plumbing needs, HVAC equipment, and industrial tools, vary greatly in weight and size. Items are shipped from 54 warehouses in North America. Four large replenishment centers feed the warehouses, and six CubiScans perform dimensioning within the system.
"We capture sizes at receiving and use the information [in many different ways]," says Scott Lowther, Interline's vendor compliance manager. These include slotting within the warehouses and determining other space needs in both new and existing facilities.
The dimensional data are also used for shipping. Although it relies on parcel and LTL service for shipments to customers, Interline has its own fleet of trucks to handle much of the hauling between its facilities.
"We want to ship as little air as possible, so filling the trucks to capacity is to our advantage and is most cost-effective," says Lowther.
He adds that customers also want to know what their freight charges will be at the time of order. Lowther says that Interline will be using the data it captures on its products to roll out a new program in the first quarter of 2013 that will provide accurate freight charges, enhancing the overall customer experience.
"CubiScan provides very effective data, and utilizing it for multiple means as we are is essential for our business," he says.
WORKING WITH CARRIERS
As valuable as weight and dimensional data may be for internal shipping purposes, the story doesn't end there. Having accurate numbers can also prove helpful when shippers go to deal with for-hire LTL and parcel carriers.
One example would be a case involving a dispute over freight charges. "If there is a challenge on a shipping charge, we have full documentation on that product's weight and dimensions," says Entrikin of Monoprice. Such challenges, he adds, used to be more common when the company relied on manual measurements, but rarely occur now because the information supplied to carriers is much more accurate.
And then there's the matter of building better relations with carriers. Although parcel carriers tend to be more exacting when it comes to a package's weight and dimensions, LTL carriers often rely on data provided by the shipper to determine freight charges. That's largely a matter of expedience: Most truckers are focused on keeping freight moving through the network and don't want to slow down processes to weigh and measure freight.
"Carriers don't have the time to dimension every load," says Clowdis of IHS Global Insight. "But if they see something that looks funky, they weigh and inspect it."
That's where dimensioning data comes in. "If you have accurate info on your products, it just makes it easier for the carrier," explains Michael Regan of TranzAct Technologies.
Ross of Stifel, Nicolaus & Co. adds that making life easier for the carrier can have a long-term payoff. "If the shipper has better info on its products, it may be able to get a better price and build a better relationship with the carrier," he says.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.