While there are a lot of elements to running a distribution warehouse—labor, accuracy, speed, costs—at the end of the day, it is a business controlled almost entirely by dimensions. The dimensions of the space in your warehouse, of the items in your racks, down to the dimensions of each box, and even the dimensions of the truck that takes each order away…all of these need to be measured accurately in order to plan effectively.

In other words, controlling these elements is critical to running a successful distribution and fulfillment center, and if not kept in check, you’ll find these dimensions controlling you. What do we mean by this?

Take something simple, like packing and shipping. At first glance, it might appear that little can be done about costs here: Customers today expect free shipping, and yet carrier costs are significant, even when everything runs smoothly. Problems like inaccurate measurements of dimension and weight, or using the wrong packaging, can incur stiff penalties…making shipping even more expensive.

While you might not have much control over the dimensions or weight of your products, getting accurate measurements of your packages for shipping—that is, getting a handle on the dim weight—can be a surprisingly effective way of controlling hidden shipping costs and chargebacks. This is made possible through the use of automated DIM weight equipment.

Understanding Carrier Costs and DIM Weight

To understand where some avoidable shipping costs are hiding, it helps to review how DIM weight works.

Dimensional weight (DIM weight) is a method of pricing based on measuring a package’s volume in relation to its actual weight. Carriers adopted DIM weight as the standard for shipping charges to optimize the space in their vehicles.

DIM weight is calculated with a simple mathematical formula:

(length X width X depth) / DIM divisor

The DIM divisor, also called the DIM factor, is a value set by carriers and represents cubic inches per pound. For example, the current DIM divisor for UPS and FedEx is 139, while the DIM divisor for USPS domestic priority mail is 194.

Thus, DIM weight is determined by getting the volume of the package (based on its dimensions) and then dividing by the DIM divisor, which is then rounded to the nearest whole number. Charges are based on the resulting DIM weight or the actual weight, whichever is greater.

Example: A box measuring 10” X 12” X 8” has a DIM weight of 7 pounds. (10 X 12 X 8)/139 = 6.9, rounded to 7. Pricing is based on 7 pounds, even if the actual weight is less. However, if the actual weight is 8 pounds or more, pricing is calculated by that number.

Carriers use DIM Weight because it affects how much cargo they can plan to carry in their trucks (planes, etc.). Reporting the dimensions of a package to the carrier is a key to their efficiency, and so they set up incentives to do this accurately. (This is also an argument for why you need a multi-carrier TMS that can connect your fulfillment systems.)

All that said, there can be more to your overall shipping bill than simply DIM weight charges. This is especially true for warehouses that work at scale: A few dollars per shipment might not make a difference when sending a dozen packages in a day, but when sending hundreds or thousands, small fees and pricing inefficiencies add up quickly.

1. Avoid Chargebacks

If a company records the wrong dimensions or weight on an outgoing package, or only lists dimension or weight but not both, two things can happen: The carrier will adjust the base charge accordingly using DIM weight, and they may also charge an additional fee (chargeback) per parcel that has missing or incorrect information. (Note that the process of correcting this can potentially delay the shipment, too.) Relying on your vendors’ inventory master lists for dimensions and weight can be problematic here—if their data is wrong, you could be paying for their mistakes! (Again, not having control of your dimensions means you will find these dimensions controlling you.)

Fee amounts vary by shipper and fluctuate over time, but range from about $1 per package to 5% or 6% of the amount of the price adjustment. Regardless of how they are calculated, chargebacks can accumulate fast as throughput increases.

We integrate dimensioning cameras and light curtain dimensioning systems into our shipping systems regularly.

For all but the smallest companies, trying to accurately measure and weigh packages by hand is a non-starter. The most basic advantages of adding DIM weight machines are that they provide thorough data and eliminate human error. They can also go much faster than any manual system. Equipment like StreamTech’s Sprinter^™ can scan, weigh, measure dimensions, and print and apply labels for between 600 and 1,000 boxes per hour, without making a mistake.

2. Right-Size Packaging

Another source of unexpected shipping fees is a handling surcharge for packages that exceed size or weight limits, or that are not in a squared box. For example, boxes heavier than 50 pounds, or measuring more than 48 inches on the longest side, can trigger surcharges of hundreds of dollars from FedEx.

While the size of parcels can’t always be controlled, making sure to use the smallest box possible will help. We’ve all laughed when a huge box arrives at our doorstep, with one small item inside, accompanied by lots of void fill. This is obviously not efficient.

In many fulfillment operations, the selection of the right box size (called cartonization) is left up to an operator’s sole discretion during the packout process. A material handling systems integrator such as StreamTech, can use a cartonization algorithm integrated right into our Warehouse Control System software (WCS) and take this guesswork out of the process.

Ideally, various types of packaging equipment should be integrated which can build a box on-demand to match the size of each order. Some systems employ complex machines to build a box around each item; others build a cardboard tray, then add a lid, and still others employ robotic arms to select each box. StreamTech Engineering can work with you to help find the right equipment for your operation, all designed to control the dimensions of each box.

Automating these processes also gives managers the tools to make better, more cost-effective packaging and shipping decisions. Perhaps orders might be split into two or more cartons so they’re not overweight, disassembled to fit in a smaller box, or more suited to an alternative packing material like a padded envelope.

Optimizing cartonization eliminates wasted space in each parcel and minimizes the DIM weight—and therefore shipping charges. You’ll know ahead of time that something is heavy enough or big enough for surcharges to kick in, instead of being surprised with an invoice.

3. Rate Shopping By Carrier

Another way that automating DIM weight helps the bottom line is by allowing carrier rate shopping in real time.

Carriers differ in their pricing models and requirements, and fees change frequently. StreamTech’s WCS software has the ability to integrate with multi-carrier TMS software. Together with accurate DIM weight data, the warehouse system can automatically scan the various shipping options available, choosing the carrier that offers the best price (along with other criteria, like on-time records and return stats). Once chosen, the system can create and affix the appropriate label, further streamlining the process.

Over time, this kind of rate shopping will allow your fulfillment center to find ways to use your annual carrier spend more efficiently, and without massive manual intervention.

Take Control of DIM Weight Before It Takes Control of You

Fulfillment centers live and die by dimensions; taking control of their measurement and use means controlling a large part of your costs.
Here we’ve seen how automating DIM weight calculation minimizes the human error in weight and dimension estimation, allowing companies to avoid unexpected surcharges and maintain more predictable shipping costs. Additionally, the real-time rate shopping and automated labeling eliminate time-consuming steps, freeing warehouse staff to focus on higher-value tasks. StreamTech’s WCS software ensures that each shipment meets carrier specifications for both price and performance, enabling consistent, cost-effective delivery and enhancing customer satisfaction.

And while measuring DIM weight may not seem like a top priority when deciding how to automate your warehouse, implementing dimensioning equipment can have a relatively large impact. When every package can be scanned, weighed, and measured efficiently, ensuring that only accurate information is provided to the carrier, things like chargebacks, special handling fees, and bad packaging decisions become a thing of the past.

Fill out the form below or call us to discuss how StreamTech can help.

Introduction To Package Identification

For any successful fulfillment automation system to operate properly, the equipment must be able to uniquely identify each package. This identifier may be a License Plate (LPN) (for a pick-pack application — most common in fulfillment), it could be a Tracking Number (receiving applications), a Work Order (manufacturing), or a UPC (bulk shipping). Since a hand scanner is relatively inexpensive but fixed (automated scanning) can be somewhat tricky.

Barcodes may be 1D, or 2D: 1D codes have a series of variable width lines using symbologies like Code 128, Code 39, or UPC. 2D codes are made up of a checkerboard-like pattern. For example, a QR code is popular for scanning with a smartphone. Other 2D codes include Datamatrix and Maxicode. 2D codes can hold a lot of data so they are great for a weblink or even maintaining explicit information.

For pick-pack applications, we just need to essentially serialize the orders over a time-slice of perhaps a few days or weeks. Thus 6-9 digits is usually plenty of length and that’s what we’ll focus on for “License Plate” (LPN) applications.

Implications Of Label Placement

Understanding the purposes of the LPN and the types of barcodes used, we can dive into the details about why their placement is so important. Once that LPN barcode is read, the automation can begin to assign attributes to the order, such as weight and dimensions. This allows us to print and apply shipping labels accurately and ultimately report on the shipped status, sort location, and other data. We call this the “induct” scan.

Performing the induct scan requires the placement of a scanner along a side of the conveyor where the LPN will be located – typically to read the LPN on one side of the package. Consistent placement and alignment go a long way toward successful automation, saving you cost on unnecessary scanning equipment. Consistent LPN placement will reduce the number of scanners or cameras necessary to read a label.

In some cases, it could even allow you to reduce the number of redundant labelers. In a recent project, we were able to eliminate the need for a side-applied carrier label. The customer had requested a top-applied labeler and side-apply as well. However, we got creative – by instructing the operators to place LPNs on the front face of their packages, and induct packages on their side, we could use just one top-apply labeler, and accomplish both goals. A little bit of human cooperation goes a long way. The cost savings can be significant, and is only possible through cooperative owners and operators.

If the operator is unable to place the LPN in a consistent location, we add scanners to read each side, and each scanner adds to the equipment cost and programming complexity of the project.

(5-Sided Scan Tunnel on Left; 2-Sided Scan on Right)

Sure, We Can Do It; But Are You Sure You Want Us to?

Ultimately, if you are unable to control the placement of your LPN’s, or the orientation of your packages along the conveyor, our engineers can design systems that can read 5 (or even 6) sides of your packages, at any location. These are called scan tunnels, and involve about 10 specialized oscillating mirror scanners, as well as large fixed mirrors to ensure coverage across the entire package. It could theoretically even incorporate a between-roller scanner to capture labels on the bottom. The cost of a barcode scan tunnel over the cost of traditional one-sided or two-sided package scanning technology can be as much as a tenfold factor (or more), so it can be best to consider a compromise to bring consistency to the label placement, where practicable.

However, there are a variety of high-volume situations where many-sided automated scanning tunnels may be necessary. Situations where you are unable to control the location of the LPN, such as when utilizing only the manufacturer’s UPC label on the outside of the package. Some labeling applications utilize the WMS database and rely solely on the UPC.

Applications Where Multi-Sided Scanning may be necessary (generally in higher volume, very automated scanning facilities):

• Cross-Docking: scanning-in product UPCs straight from the dock door, from the manufacturer or supplier, weighing, dimensioning and labeling it straight for outbound carrier shipment, conveying to another outgoing dock, with no product storage.
• Inbound Receiving: scanning-in product UPCs or carrier labels straight from the carrier’s truck for inventory storage.
• Package Variation & Odd Shapes: in some instances, products are simply such a wide variety that a scan tunnel can be the most efficient way to account for all the variety. A combination of flats, bags, padded mailers, wide package size variety, and shrink-wrapped products could result in the need for a scan tunnel.

Often, the best way to meet the efficiency and ROI you are looking for is through some automation, combined with operator consistency as well. StreamTech’s applications engineers will work with you to define the scope of your project and provide recommendations about automated scanning for practical savings opportunities when possible.

Be sure to learn more about StreamTech

What Is WCS (Warehouse Control System) Software?

The fulfillment area of your warehouse is comprised of a variety of functions, from inventory receiving and replenishment, to picking, packaging, transporting, shipping, sortation, and more. All of these discrete areas of the warehouse have a wide range of requirements, inputs, and outputs, as well as nuances based on the type of products and customers involved. These nuances all have to be managed by a central software that handles the hand-off between all of these various systems and the software databases that also manage each of these systems.

A WCS Warehouse Control System is a real-time, integrated control solution that manages the flow of items through the warehouse. They act as a traffic regulator for warehousing activities, with the mission of running material handling systems (and in some instances, the activities of workers). A good WCS system provides a broad, yet consistent interface for material handling systems like conveyors, carousels, palletizers, sorters, etc. This can result in great ROI for warehouses.

Key WCS Functions:

• WCS manages the operations of many types of material handling equipment
• WCS exchanges real-time communication of information
• WCS can synchronize the operation of automated systems, labor, and material
• WCS unifies the interface and control of automated equipment
• WCS focuses on one warehouse at a time

WCS sits in a layer that connects directly to automated equipment. It adjusts at the level of a single piece of equipment — and often through an entire facility. It can modify the behavior of shipping systems, conveyors, sortation, pick and pack automation systems, etc. WCS may also be integrated into wider essential systems to streamline warehouse management operations. For example, security devices like dome cameras, alarms, and access control systems may send real-time data to WCS, enabling stakeholders to receive automated alerts regarding security incidents.

If your warehouse were like a smart home – you have blinds, doorbells, cameras, garage doors, water sensors, light switches, TV’s, speakers. Would you rather have multiple apps on your phone to control every single one of these devices, or would you rather have one app where they’re all organized and controlled?  This central control is the WCS for your warehouse.

What Software Connections Does It Make?

A successful automation system is about more than just hardware. Yes, the WCS manages picking, packaging, shipping and sortation equipment from a variety of different manufacturers, orchestrated perfectly together to meet your daily business requirements. However, in this digital age, we cannot overlook the software and database connections that the WCS must also make, to your WMS, ERP, order management and/or multi-carrier platform.

In a fulfillment automation application, in order for the hardware to perform tasks such as assigning weight, dimension data, pick status, packslip status, sort location or other information to an order, it must be connected to your multi-carrier or order management software.  The connection to these platforms allows the data to be powerful enough to do things like rate shopping in real-time from the weight and dimension data, perform address verification, proof of delivery, and other important functions for your company and ultimately your customers. Read this excellent article from MHI’s Warehouse Automation Blog on other warehouse software, and how the WCS fits together.

What WCS Capabilities Should You Expect?

When looking at fulfillment automation integration partners, choose one who has a warehouse control software that is robust, proven, and that you can trust with your physical hardware and data. A warehouse control system (WCS) directs “real-time” activities within warehouses and distribution centers. They act as a traffic regulator for warehousing activities, with the mission of running material handling systems (and in some instances, the activities of workers). A good WCS system provides a broad, yet consistent interface for material handling systems like conveyors, carousels, palletizers, sorters, etc.

Some of StreamTech’s WCS features include:

• Realtime status of all shipped orders, including tracking ID, weight, dimension, etc.
• Sends data to and from the multi-carrier or order database (rate shopping, address verification, proof of delivery)
• Equipment status and error alerts (ie: printer, print head life, sensors, scales, scanners, etc)
• Configuration and management of sort lanes and locations
• Manages pack slip automation systems
• Manages picking systems
• Allows user management of multiple printer/applicators, and bypass if necessary
• Production reports – machine availability/uptime, boxes per hour, per week
• Data logging and exporting
• Response time reports
• Carton per minute reports
• Interface to HMI’s, can be shown directly within the software application
• Built-in browser, interfaces to any web-connected hardware
• Defined user roles – administrator vs. operator
• Built-in hardware troubleshooting test functions (test labels for printheads, boundary, other testing)
• Search by order, LPN, tracking number, category, status, lane etc.

If you are a warehouse worker or someone seeking warehouse job options, it’s crucial to be aware of Warehouse Control Systems (WCS), as they greatly enhance efficiency and organization within the warehouse environment.

StreamTech’s engineering and software development teams are constantly researching and incorporating new features to increase the capability of our WCS.  For more information, or if you would like to discuss your fulfillment operation with us, please fill out the form below or give us a call.

As a manufacturer of custom shipping, compliance labeling, and a wide variety of additional material handling systems we recognize that everyone starts somewhere. The most common comment(s) we get regarding automation fulfillment is, “Automating my process would be nice but, we are too small…don’t have enough throughput… can’t afford it. While some of these statements may be true hurdles before diving into automation, we believe the Sprinter™ Shipping System is a good first step to negating these entry barriers.

What Does The Sprinter™ Do?

More often than not someone walks up to the StreamTech Demo Sprinter™, studies it, and then asks, “But what does it do?” From the outside, the Sprinter™ looks like nothing more than a piece of conveyor shuffling cartons through and slapping a label on them. The inner workings of the Sprinter™ are gathering, connecting, and verifying data to simplify end-of-line processes.

The Sprinter™ all-in-one shipping station is capable of scanning, weighing, dimensioning, printing, and applying labels and verifying. It can also integrate with a multitude of additional features. Ten feet doesn’t seem like a significant impact, but by combining the individual process that is manually done you are not only saving space but time with an all-in-one system.

The Sprinter™ comes into play after the pick and pack process. We also manufacture other fulfillment automation processes that fall into place before the Sprinter™ such as picking automation or pack automation. An order has already been tied to the LPN (License Plate Number) or unique identification number. The Sprinter™ can handle a minimum carton size of 4” W x 6” L and a maximum of 21” W x 26” L. The carton is typically closed and ready to go through the end-of-line fulfillment process.

Induction Scan

The first step in most processes is identifying what you are working with. The Sprinter™ is no different. Its first order of business is to scan the LPN or identification barcode. Unique identification is required when manifesting a carton for a carrier. This can be the specific order number or a number that is uniquely associated with the order. The Sprinter™ is capable of scanning a wide variety of barcode symbologies, sizes, and locations.

Once the barcode is examined, it is now ready to add details. One of the many beneficial aspects of the Sprinter™ is its Allen-Bradley-based control system. The open architecture allows the Sprinter™ to expand and integrate with existing and future operations quickly. Additional features such as a dimensioner can speed up operations and provide accurate, error-free details to the carton.

Weighing

The weight of the carton is captured and recorded in StreamTech’s Warehouse Control System (WCS) software. The Sprinter™ scale is suitable for weighing parcels up to 75 lbs. and 28” long. With a throughput of 14-18 cartons per minute, the Sprinter™ scale is a viable option for taking your first step into automating the end-of-line fulfillment process. For faster throughput and additional options, we offer upgraded scales.

Dimensioning

Automating dimensional weighing is a valuable option that saves on many fronts. We utilize a laser-based system with an encoder that measures the carton to the nearest 0.25 inches in 3 dimensions. Automating dimensioning can mean significant time & cost savings. On average it takes an employee 15-30 seconds to measure and record the dimensions of a carton.

Along with those 15-30 seconds come mistakes occasionally. Sprinter™’s dimensioner cuts that time down to a fourth and also does it error-free as it records the data into the StreamTech Sprinter™ software. You are now holding your carriers accountable for dimweight charges along with maintaining your service level.

Print And Apply Labeling

All of the data we require for each carton has been captured and recorded. It’s time to print and apply the shipping label. StreamTech utilizes an all-electric print and apply applicator. It is low maintenance and offers easy label roll change-out. The 14” tamp comes standard with an option for a 22” as an upgrade. For even faster operations we utilize a larger printer applicator with the capacity to hold 3,800 labels per roll with a 36” tamp stroke.

Verify

Accuracy is the Sprinter™’s forte. After all of the pieces of the puzzle come together they are checked one last time to make sure they are correct. The Sprinter™ scans the LPN and shipping label for a parity check. If all checks out the carton are sent down its proper carrier lane. If there is a problem with the parcel it will be sent down the “jackpot” lane for review by an employee.

The StreamTech Sprinter™ is a great first step into automating end-of-line fulfillment processes.

Through Its All-In-One Nature The Sprinter™ Shipping System Brings Numerous Benefits:

• Reduce manual labor
• Eliminates the need for shipping stations dedicated by carrier
• Holds your carrier accountable for dimweight charges
• Eliminates data entry errors
• Increases your throughput while maintaining your service level
• Paired with a multi-carrier system the Sprinter™ automates rate-shopping, address verification and proof of delivery

What Is A Piggyback Label?

Piggyback labels are multi-layer labels that provide flexibility in a wide variety of applications. These are not to be confused with the Duplex Packslip™ label application. The Duplex™ Packslip is a technology that provides for printing on both sides of a label and can automatically be applied to shipments. The top label can be removed to reveal a hidden packslip on the back side. The process is also known as piggyback labeling.

The Piggyback label is printing on only the top layer of the label and allowing it to be transferrable.

Benefits Of Piggyback Labels

Piggyback labels offer a range of advantages in various applications, providing a versatile solution for businesses. Here are some key benefits associated with the use of Piggyback labels:

1. Enhanced Consumer Engagement

Piggyback labels serve as effective action devices, engaging consumers to respond to offers, choose gifts, or select subscriptions. By leveraging the top layer of the label, businesses can create interactive marketing materials that enhance consumer involvement, particularly in direct mail campaigns.

2. Functional Accessibility For Bulky Items

In scenarios where items are bulky or heavy, Piggyback labels provide a functional solution. The top layer can be easily removed to access a barcode for scanning at checkout or in a warehouse. This streamlined process ensures efficient handling of large or cumbersome products.

3. Efficient Information Transfer

Piggyback labels can be employed on forms to facilitate the transfer of information to another location. This feature is particularly useful for applications where data needs to be transferred seamlessly, enhancing the overall efficiency of processes.

4. Promotional Capabilities

Businesses can utilize Piggyback labels as part of promotional activities. Whether collecting tokens for discounts or applying them to a game board, Piggyback labels offer a creative and engaging way to run promotions and loyalty programs.

5. Seamless Return Processes

StreamTech has developed a process for applying Piggyback labels to facilitate seamless return processes. By providing a designated space for a return label, businesses can eliminate the need for consumers to print an additional label when returning items. This not only saves time for consumers but also reduces costs for the company.

Piggyback labels represent a versatile and innovative solution with diverse applications across industries. If you believe that Piggyback labeling could benefit your fulfillment operation, don’t hesitate to reach out to a StreamTech team member. We are ready to discuss your specific Piggyback labeling needs and explore how this technology can enhance your business processes.

Some Of The Most Common Instances That Piggyback Labeling Could Be Utilized

• As an action device that can engage a consumer to reply to an offer, choose a gift, or select a subscription. They can increase involvement with a direct mail piece.
• When items are too bulky or heavy to be handled easily, removing the top layer of the Piggyback label can be a functional way to access a bar code for scanning at checkout or in a warehouse.
• Piggybacks can be utilized on forms to transfer information from the form to another location.
• They can also be used as part of a promotion – collecting tokens and applying them to a game board, for example.

Custom Piggyback Labels

Piggyback labels stand out for their remarkable customization capabilities, offering businesses the flexibility to tailor labels according to their unique branding requirements and specific promotional needs. This section explores the diverse customization options that Piggyback labels bring to the table.

1. Branding Consistency

Piggyback labels can be seamlessly integrated into a brand’s visual identity. Businesses can customize these labels to match their color schemes, logos, and overall branding guidelines. This ensures a consistent and professional look across all marketing materials, reinforcing brand recognition and customer trust.

2. Variable Data Printing

Take advantage of variable data printing with Piggyback labels. This feature allows businesses to personalize each label with unique information such as serial numbers, QR codes, or customer-specific details. This is particularly valuable in scenarios where individualized tracking or identification is required.

3. Promotional Themes

Businesses can align Piggyback labels with specific promotional themes or campaigns. Whether it’s a seasonal sale, product launch, or holiday promotion, Piggyback labels can be designed to complement the overall theme. This dynamic customization enhances the promotional impact and captures the attention of the target audience effectively.

4. Size and Shape Variations

Piggyback labels can be manufactured in various sizes and shapes to suit different product packaging or marketing materials. This adaptability allows for creative design choices, making Piggyback labels suitable for a wide range of applications across industries.

5. Interactive Elements

Integrate interactive elements into Piggyback labels to enhance customer engagement. QR codes, augmented reality features, or NFC technology can be incorporated, providing an interactive experience for consumers. This not only adds a modern touch but also opens up opportunities for businesses to connect with tech-savvy audiences.

Piggyback labels empower businesses with the freedom to create unique and visually appealing labeling solutions. By leveraging customization options, companies can elevate their branding efforts, make promotional activities more impactful, and stand out in a competitive market.

StreamTech has worked on a process for applying Piggyback labels for a customer to provide a place for a return label. This customer’s goal is to make the return process seamless for the consumer. The Piggyback label would eliminate the consumer’s need to print an additional label to return an item and ultimately save time and reduce costs for the company.

If the Piggyback label sounds like a good solution for your fulfillment operation, get in touch with a StreamTech team member and we would be glad to discuss your piggyback labeling needs.