For repair service provider Lifetime Service Center, the answer to protecting delicate electronics in transit was to use less packaging material and invest in an automated on-demand foam-in-bag system.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
The Problem: When it's your job to repair television sets, the last thing you want is for items to sustain further damage while being shipped to your repair centers. But that was the problem Lifetime Service Center faced.
Lifetime Service Center provides repair services for electronics companies and manufacturers as well as for extended warranty providers, such as big-box retailers. One of the main items its technicians service is flat-screen TVs. When a consumer has a TV that needs fixing, he or she calls Lifetime, which ships him or her a box and packaging material. The consumer then puts the damaged product into the box and sends it to one of the company's repair facilities.
"It's critical that the materials we provide are easy for consumers to use and, most importantly, perform during shipping," says Kam Bleuer, distribution manager for Lifetime.
But about five years ago, Lifetime was finding that its packaging materials for large (up to 42-inch) flat-screen TVs were not performing up to standard. The TVs were arriving at the repair centers with cracked screens.
What was particularly perplexing was that Lifetime was not scrimping on packaging. The company was using a well-established foam-in-bag packaging solution, where chemical foam is placed inside a bag and the bag expands around the product to cushion it. But something about it was not working. "We had to find another solution or risk long-term damage to our customer service reputation," says Bleuer.
The Players
Customer: Lifetime Service Center Primary business: Providing repair services for major electronics and appliance manufacturers as well as retailers that offer extended warranty services Locations: Williamsville, N.Y., and Ontario, Calif. Supplier: Sealed Air Corp.
Solution: On-demand foam-in-bag packaging equipment (SpeedyPacker Insight Foam-in-Bag Packaging System and Instapak Molding Wheel, Instapak iMold System)
The solution: A chance meeting at a networking event led to the eventual solution. At the event, two Lifetime employees were introduced to Fred Witkowski, a sales representative at packaging specialist Sealed Air. The Lifetime people mentioned the problem they were having with their current foam-in-bag system (which was provided by one of Sealed Air's competitors), and Witkowski offered to help.
To figure out what was going on, Sealed Air tested Lifetime's packaging at its Packaging Design Center in Danbury, Conn. There, the professionals subjected the company's current packaging to vibration and drop tests. "During testing, we figured out that Lifetime's biggest problem was they were using too much foam material on the corner cushions, and this was causing the television screens to crack," says Witkowski.
Sealed Air experimented with different foam formulations and found one that created cushions that were not too dense yet were still durable enough to be used for shipping a TV both to and from Lifetime's service center. "Ultimately, we determined that Instapak GFlex foam would be the best formulation for Lifetime's needs," says Witkowski. "The density of this formulation meant they would be using less foam to create cushions that performed appropriately."
Sealed Air also found there was room for improvement in Lifetime's cushion-making process. At the time, Lifetime personnel were forming the cushions by hand—after a machine inserted foam into a plastic bag, workers placed the packaging material on top of the television so it would expand and conform to the shape of the product. This wasn't working well, however, because Lifetime could not make a consistent cushion every single time.
Sealed Air suggested replacing the old equipment with its SpeedyPacker Insight and Instapak Molding Wheel systems. The SpeedyPacker creates the foam-in-bag material, which is then placed inside the molding wheel, which uses a mold to form a cushion that fits around a flat-screen television.
It quickly became clear that the new system was a step up from its predecessor. "We reduced damage rates by about 8 percentage points after switching to the Sealed Air molded foam cushions for the televisions," says Bleuer. "At the same time, we cut our packaging material costs by about 25 percent. I'd estimate we saw a return on our investment in the new packaging systems within the first year."
While Lifetime was pleased with the savings, it wondered if the packaging process could be automated even further. With the SpeedyPacker and Instapak Molding Wheel systems, Lifetime had to devote an employee just to making the cushions—placing the bag into the SpeedyPacker to be filled, then removing it and putting it into the molding wheel. Automating the process would free up that employee for other tasks.
In late 2011 and early 2012, Lifetime installed two of Sealed Air's new iMold systems, fully automated machines that create premolded foam cushions. The installation was successful, and now the iMold machines create 400 to 500 cushions daily for Lifetime with minimal oversight.
"We set the two iMold systems up on a mezzanine and have them pump out cushions all day for batching," says Bleuer. "It wasn't too much work to incorporate them into our operations once we set up the mezzanine; we just had to run a few additional power lines to the systems. Now, they're always running—we just have the last guy in the warehouse program the systems to create a certain number of cushions before he leaves."
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
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.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.
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!