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  • A Prescription for Precision: How to Develop Dependable Warehouse Fulfillment in Healthcare

    Kylea Dietz

    A Prescription for Precision: How to Develop Dependable Warehouse Fulfillment in Healthcare

    Operating at the intersection of logistics and patient care, healthcare fulfillment is one of the most complex and demanding sectors in warehouse operations. When prescriptions, medications, or medical devices are involved, regulations demand a higher degree of traceability than almost any other industry. Outside of compliance, there is still little room for error—mislabeling, documentation mistakes, or shipment delays can lead to costly outcomes.

    Even if the items being shipped are simple supplies—hospital masks, syringes, or gloves—inefficiencies still add up. Every mislabeled package, oversized box, or late delivery eats away at the bottom line. Over time, these inefficiencies leave money on the table.

    In short: healthcare fulfillment must prioritize precision for both patient safety and financial health.

    Symptoms of Inefficiency in Healthcare Fulfillment

    Errors in labeling, missing documentation, or an inability to scale during demand spikes often seem like isolated problems. In reality, they share a common cure: automation.

    A 2023 Gartner study predicts that over 75% of companies will adopt some form of cyber-physical automation in their warehouses by 2027. The takeaway is clear—automation isn’t optional. Healthcare fulfillment centers that fail to automate risk falling behind competitors who reap the benefits.—all without human touch.

    The Good News: Automation Doesn’t Add Regulatory Burden

    One common concern for healthcare and medical organizations is whether warehouse fulfillment automation itself will create more regulatory burden than your existing manual processes do.  The good news is that the automation can sync right into your existing business rules.

    For one, companies, such as StreamTech can customize the WCS software that drives much of the fulfillment automation so that it follows your business rules. Secondly, all the data that is housed on the system. PC is adopted into your existing IT infrastructure and device management security.

    Additionally, once implemented, fulfillment automation systems are several steps removed from patient health data or controlled substance records. Instead of handling personal or clinical information, StreamTech’s automation operates on generic identifiers such as LPNs (license plate numbers), order IDs, and ZPL carrier label files.

    This means:

    • Automation doesn’t have to see or retain patient names, addresses, or medical details—it only processes anonymized order data.
    • Carrier labels are applied as files (e.g., ZPL) streamed directly from the host system, without storing patient data in the automation layer.
    • Verification steps (scans, images, reports) log order accuracy and movement—not patient records.

    In other words, automation provides the operational safeguards—traceability, accuracy, redundancy—without introducing new regulatory exposure. Healthcare companies remain compliant while gaining efficiency.  Not only that, but the added automation layer gives companies an audit trail showing where each package went through the warehouse and into the hands of the carrier – so you can always provide detailed reports.

    StreamTech’s Healthcare Experience

    StreamTech has a proven track record of designing and implementing automation systems across the healthcare and medical spectrum. Our team has delivered projects for:

    • Medical device manufacturers who need high speed, highly accurate fulfillment for next day air shipment so surgical instruments can be in the hands of a doctor.
    • Prescription drug fulfillment operations where accuracy, liability reduction, and scalability are essential, so patients get accurate prescriptions on time.
    • Health and hospital supply distributors seeking to eliminate inefficiencies and improve throughput.
    • Home health device companies balancing patient safety requirements with the need for cost-efficient operations.

    These successful implementations give StreamTech a unique perspective: we understand the challenges of warehouse fulfillment in healthcare, but also the opportunities automation creates to overcome them.

    Reduce Liability Risk with Process Control

    Liability risks are inherent in healthcare fulfillment, especially when handling regulated products. Errors like mis-shipments or compliance violations can create financial and reputational damage. Traditionally, some organizations add layers of personnel—even pharmacists—to manually check each transaction. Unfortunately, more human touchpoints often increase error rates.

    Automation reduces that risk by enforcing process control at every stage:

    • Automated Picking Systems log each pick for precise recordkeeping, tracking the picker, SKU, time, date and quantity.
    • Automated Scanning at every step in the fulfillment process ensures accuracy, from the moment an order is inducted, to when it gets weighed, dimensioned, labeled, verified and sorted.
    • Package Interrogation to gather details such as weight, dimension, or even visual confirmation (e.g., PackSight™) to capture photo proof of packed orders.
    • Real-time Reporting of every package through the warehouse, tracked with WCS software to create audit trails accessible on demand.
    • Automated Labeling & Document Insertion ensure accuracy and compliance consistency.

    StreamTech designs these systems to achieve accuracy rates above 99.5%, with layered redundancy for healthcare environments.

    Ensure Accuracy with Compliance Labeling

    Compliance labeling is critical for traceability and patient safety. Batch numbers, lot codes, expiration dates, UDIs, allergens, and usage instructions must all be correct. Manual labeling processes are error-prone, leading to recalls, fines, or worse.

    Automation dynamically generates and applies labels from centralized data, maintaining compliance and adapting to regulatory changes without disruption. This not only prevents errors but also streamlines operations, ensuring healthcare providers can meet demand confidently.

    Fulfill Seamlessly with StreamTech

    Healthcare fulfillment operations must scale to meet fluctuating demands—from seasonal surges to public health emergencies. Manual processes struggle to keep up, creating bottlenecks. Automation enables scalability and profitability:

    • Automated Picking and Packing: The two main systems for automated picking and packing include…
      • Robotic Picking Systems: Goods-to-person robots speed up picking operations while maintaining accuracy by tightly controlling the items presented to each picking operator, and eliminating human travel time. These systems also increase warehouse storage density by reducing the need for the number of racks and aisles, allowing you to store more items.
      • VelocityPickTM Pick to Light: With pick-to-light, operators are given a visual light to guide each pick, as well as a display with the order quantity. For healthcare and medical clients, multi-level scans can be implemented to scan the order, the bin location, and even the product, giving companies tight control, as well as the performance and actions of each picker, in the event of an audit.
    • Optimized Packaging: Cartonization algorithms automatically select the smallest possible box for each order, minimizing DIM weight surcharges and reducing material waste. This dynamic adjustment allows fulfillment centers to handle increased orders without delays or added costs.
    • Automated Documentation Insertion: Automating the insertion of pack slips ensures every order includes the correct documentation with 100% scan verification and parity checking against each carton for accuracy. StreamTech’s system efficiently prints, folds, and inserts multi-page packing slips at a rate of up to 1,000 boxes per hour, verifying each slip against the carton in real time.
    • Cost-Optimized and Verified Shipping: StreamTech’s end-of-line shipping automation gathers package weights and dimensions in motion, rate shops them through a multi-carrier TMS software, and applies the appropriate label. This ensures each package is shipped via the most cost-effective option, even as shipping volumes rise.

    By automating these processes, a fulfillment center can onboard new clients without disrupting operations or compromising accuracy. What might have been a logistical challenge with manual systems becomes a streamlined and profitable expansion.

    Moving Forward with Confidence

    Warehouse fulfillment in healthcare and medical industries doesn’t have to be overwhelming. Whether you’re dealing with medical devices, prescription fulfillment, or everyday hospital supplies, the right automation strategy can reduce errors, improve compliance, and create room for growth.

    StreamTech has already helped a wide range of healthcare organizations modernize their fulfillment operations, and we bring that experience to every new project. If fulfillment is an area you’re looking to improve, our team has the expertise and proven solutions to design a system that matches your needs today and scales with your business tomorrow.

    Smarter Fulfillment for Health & Medical Orders

    Accuracy, compliance, and patient satisfaction aren’t optional in medical fulfillment—they’re essential. StreamTech’s automation solutions help you handle health and medical products with speed and precision, while reducing labor challenges and scaling to meet demand. Discover how the right technology can help you protect your customers and your bottom line.

    Explore Health & Medical Fulfillment
    Supplements and pills blister packs. Pack of pills

  • Common Pain Points for 3PLs

    Alex Kinkade

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    Common Pain Points for 3PLs

    Contributed by DCL Logistics team

    Running a third-party logistics (3PL) business is no small feat. As the backbone between suppliers, carriers, ecommerce brands, and end customers, 3PLs juggle complex responsibilities daily. From maintaining strict service level agreements (SLAs) to adhering to quality compliance regulations, the margin for error is very thin. In this high-pressure environment, warehouse automation infrastructure is not just a nice-to-have—it’s a competitive necessity.

    The Challenges of Operating a 3PL

    A 3PL operates as a dynamic intermediary, responsible for the timely and accurate movement of goods on behalf of other companies. This middleman role is a unique spot within the overall supply chain. On one side, a 3PL must work in tandem with suppliers and ecommerce brands, to receive, store, and manage goods in a timely and effective manner. On the other, they must be skilled at managing carrier capacity and high expectations from end-customers, to deliver seamless experiences.

    Balancing these expectations is challenging under the best circumstances. When you add variables like peak season surges, SKU proliferation, and growing demands for same-day shipping, the stakes rise dramatically. Any failure to meet SLAs can damage client relationships and erode trust—especially when the 3PL is expected to be invisible to the end customer, while delivering perfect service.

    The Burden of SLAs and Compliance

    Service level agreements are the lifeblood of 3PL operations. These contractual benchmarks define how quickly orders must be fulfilled, how accurately inventory is managed, and how reliably returns are processed. Missing SLA targets isn’t just a disappointment—it’s a liability. 

    Additionally, compliance regulations—particularly for food, pharmaceuticals, or international goods—require meticulous tracking, documentation, and handling procedures. Human error or manual inefficiencies in these processes can lead to costly penalties or safety risks. 

    Automation as a Strategic Advantage

    This is where automation infrastructure transforms operations from reactive to proactive. Modern 3PLs are increasingly investing in warehouse automation systems to scale efficiently, reduce error rates, and meet rising expectations. Key automation solutions include:

    • Conveyor Systems: Enable the efficient and consistent movement of goods across warehouse zones, reducing manual transport time and risk of bottlenecks.
    • Pick-to-Light Systems: These improve order picking accuracy and speed by guiding workers to the correct SKU locations using visual cues—essential for high-SKU or high-turnover environments.
    • Document Insertion: Remove manual errors from adding branded inserts in your kitting flow, whether you need to add promotional materials, customer onboarding guides, or return slips, document automation can ensure higher rates of accuracy.
    • Weight and Dimension Systems: Shipping costs are largely based on volumetric weight, so getting accurate package dimensions is key to knowing transportation costs upfront. Capture product dimensions and weight in real-time to ensure accurate shipping rates and optimize packaging for cost-savings.
    • Print and Apply Machines: Automate the creation and placement of packing slips, shipping and return labels, to ensure uniformity and reduce labor time.
    • Sortation Systems: Label and sort packages without halting conveyor movement, allowing for high-throughput operations and streamlined carrier handoffs.

    Meet Client Expectations and Scale Smartly

    With automation infrastructure in place, 3PLs can promise their clients faster turnaround times, improved accuracy, and full traceability. More importantly, they can scale operations during peak periods without linearly increasing labor costs or risking burnout.

    Automation also supports advanced analytics and real-time reporting, enabling 3PLs to make smarter decisions, forecast needs, and continuously improve their service models. This agility is a powerful differentiator in a competitive landscape where clients are constantly seeking more value.

    Future-Proofing the 3PL Model

    As ecommerce continues to grow and consumer expectations for fast, flawless delivery rise, the 3PLs that succeed will be those who invest in scalable, flexible automation infrastructure. These technologies aren’t just cost-saving tools—they’re enablers of precision, reliability, and long-term client partnerships.

    For 3PLs navigating the complexity of today’s logistics landscape, automation is no longer optional. It’s the foundation for operational excellence and sustained growth.

    About DCL Logistics

    DCL Logistics is a modern 3PL, grounded by 40 years of operational expertise. The company provides a full suite of fulfillment services (DTC, retail, B2B, and marketplace support) that allows ecommerce brands to scale without sacrificing flexibility, quality, or customer satisfaction. High-growth brands come to DCL for perfect order fulfillment, inventory management, returns support, and everything in between.

  • 3PL Fulfillment Automation: Transforming Processes for Operational Efficiency

    Alex Kinkade

    ,
    3PL Fulfillment Automation: Transforming Processes for Operational Efficiency

    In the competitive logistics market, third party logistics (3PL) providers face the constant challenge of meeting their customer SLA’s (Service Level Agreements), while adding new clients to grow their business, enhancing efficiency and managing costs, and improving service quality. With supply chain pressures, it’s a lot to navigate. The industry’s fierce competition demands that they not only meet but exceed expectations in cost reduction and client satisfaction.

    As challenges in the industry evolve, automation has become a crucial tool. It enables 3PLs to improve operational capabilities by streamlining processes, reducing errors, and freeing up resources for strategic initiatives. In this article, we will walk through the fulfillment process, from picking to shipping, providing practical ways that automation can help address these challenges.

    Overcoming Implementation Challenges

    Implementing automation in third-party logistics (3PL) operations can transform your business, but it’s not without its challenges. Common hurdles such as high initial costs, the need for extensive training, and integration issues with existing systems often make 3PL providers hesitant. However, with the right strategies, these challenges can be effectively managed to ensure a smooth transition.

    Initial Investment & ROI

    The upfront investment required for automation technology can be substantial. To manage these costs, consider phased implementation strategies where automation is introduced in stages. This approach allows you to spread out expenses over time and evaluate the ROI at each stage before further investment.

    Additionally, since the typical SLA is only a few years, we suggest keeping the automation to a practical, manageable level that can accommodate multiple clients and grow as your business does. Start with the mature technologies that have been tested in the market for many years, such as directed picking, conveyance, dimweight, print and apply labeling, and parcel sortation systems, for example. Each of these types of systems can be designed for a broad range of product types and sizes.

    Learn More About Warehouse Automation ROI

    Training Staff Effectively

    Training is crucial to maximize the benefits of new automated systems. Start with comprehensive training programs that not only cover how to operate the new equipment but also explain its benefits and potential impact on workflows. Engaging your team early in the decision-making process can help them be an active participant in the transition. Consider appointing ‘automation champions’ within your team who can lead by example and assist their colleagues, thereby fostering a supportive learning environment.

    Software Integration

    Integrating new automated solutions with your existing warehouse management system (WMS) or other operational platforms can be complex. This is especially important for 3PL companies who also have to provide real time data feedback to each of their customers. By partnering with an integrator such as StreamTech Engineering, you’ll receive both hardware and software integration support. Our dedicated software team specializes in integrating automation software with your database(s). A step-by-step integration plan, including parallel tests to minimize disruptions, ensures a smoother transition.

    StreamTech Engineering has developed a robust WCS software platform that integrates with the many WMS/TMS systems available. We offer a variety of standard interface options such as API connections, shared directories and stored procedures to implement these integrations.

    Making the software connection to your business planning tools enables a deep integration that gives you highly accurate data and allows you to be transparent with your clients as to when and how their products are fulfilled.

    The Role of Fuflillment Automation in 3PL Operations

    Integrating fulfillment automation into 3PL warehouse systems brings a multitude of benefits, essential for maintaining a competitive edge in today’s logistics market:

    Cost Efficiency

    Automation significantly reduces labor costs by performing repetitive tasks more quickly and efficiently than human workers. By minimizing human involvement, we reduce the costs of processing each package.

    Automation also plays an active role in reducing shipping costs, by reducing the physical package through cartonization and packaging equipment, as well as rate shopping by carrier, service level and by dimensional weight.

    Accuracy

    Automated systems are designed to execute tasks with high precision. In the context of a 3PL warehouse, this means increased accuracy in picking and packing operations, leading to fewer errors in order shipments. This precision ensures that the right products reach the right customers in the right condition, enhancing client satisfaction and reducing returns. Accuracy is especially important as it will be spelled out in the 3PL’s SLA and could impact the relationship with the retailer or manufacturer for future business.

    Scalability

    Automation enables 3PL providers to scale operations flexibly and rapidly. As business volume increases, automated systems can handle the added workload without the need for proportional increases in staff or manual processing capacity. This scalability is crucial for accommodating seasonal fluctuations and supporting business growth without sacrificing performance or customer service.

    Speeding Up the Picking Process With Automation

    Automation technologies like Pick-to-Light can be an excellent practical, affordable way for 3PL companies to speed up the picking process. Here’s how these innovative systems work and how they improve efficiency:

    Pick-to-Light Systems

    This technology uses lights and alphanumeric displays at storage locations to guide warehouse workers to the correct items quickly. When an order is processed, specific bins light up, showing the exact location of the item to be picked, along with the quantity needed. The worker then confirms the pick by pressing a button, which turns off the light, signaling that the task is complete. 

    This method drastically reduces the time spent searching for items and minimizes picking errors, leading to a streamlined operation that boosts productivity and reduces costs associated with mis-picks. Learn more about how pick to light can impact your operation.

    Automating the Pack Process

    Document automation solutions, such as the Foldserter™ are game-changers for 3PLs. These systems help streamline your process and dramatically increase throughput. 

    This advanced system is designed to automate the insertion of paperwork into packages, a task that traditionally takes up considerable time and is prone to errors. The FoldSerter™ identifies each package, prints and folds the necessary documents—whether they are pack slips, invoices, or promotional materials—and verifies each document against the package in real time before inserting it. This automated process not only ensures accuracy but also significantly speeds up the packing line. By eliminating manual document handling, the FoldSerter™ reduces labor costs and increases the number of packages that can be processed per hour.

    Minimize Disruption, Maximize Efficiency

    By partnering with StreamTech and investing in automated packing solutions, you can expect a smoother, faster, and more reliable packing process.

    Automating the Shipping & Sortation Processes:

    Automated weigh, dimension, and print apply labeling systems are integral components of modern 3Pl fulfillment automation.  These systems are also referred to as SLAM (Scan, Label Apply and Manifest) systems. These systems streamline the packaging process by accurately measuring the weight and dimensions of each item or package as it moves along the conveyor belt. This data is then used to generate precise shipping labels, ensuring that each package is correctly classified and billed according to carrier requirements. By automating this process, companies can significantly reduce the risk of human error, improve operational efficiency, and accelerate the speed at which orders are processed and shipped. This is particularly crucial in high-volume fulfillment centers, where the demand for rapid and accurate order processing is paramount.

    In addition to improving accuracy and speed, automated weigh, dimension, and print apply labeling systems enhance traceability and data integration within the supply chain. The data collected is often integrated with warehouse management systems (WMS) and enterprise resource planning (ERP) systems, allowing for real-time tracking and visibility of each package. This integration helps optimize shipping costs and improve inventory management. Automated labeling also ensures compliance with carrier and regulatory standards, reducing the likelihood of shipping delays or penalties. These systems play a crucial role in making fulfillment operations more efficient and reliable.

    Developing an effective parcel sortation system is crucial for optimizing logistics and meeting customer demands. Key applications include order consolidation, segregation, shipping lane allocation, routing, product sequencing, returns processing, load balancing, and parcel error diversion. Understanding package profiles, including size, weight, and fragility, is essential for selecting the right sortation technology. Effective systems also incorporate real-time monitoring, troubleshooting protocols, backup systems, and clear communication channels to address delays and ensure smooth operations. Additionally, scalability and adaptability to future needs are vital for long-term success.

    Successful Implementation of 3PL Fulfillment Automation

    3PL Fulfillment Automation Case Study

    DCL Logistics is a third-party logistics provider offering fulfillment, kitting, testing, assembly, and customer service across various industries like consumer electronics and health and beauty. They excel in adapting to fluctuating order volumes during peak seasons, ensuring timely and accurate deliveries. With StreamTech’s automation technology, DCL can quickly adjust their fulfillment lines and sortation systems to meet carrier cutoffs. This flexibility helps innovative brands like GoPro and Magic Spoon receive customized, high-quality fulfillment solutions, making DCL a standout in the logistics industry.

    Read the full case study here. 

    Streamline with StreamTech: Expert Automation Solutions for 3PL Providers

    At StreamTech, we understand the complexities and challenges of integrating fulfillment automation into your 3PL operations. You don’t have to navigate this transformation alone. Partner with us, a provider deeply rooted in the logistics industry, and benefit from our comprehensive support and expertise.

    Our team is dedicated to ensuring your automation integration is seamless and aligned with your specific operational needs, providing ongoing support post-implementation to troubleshoot and refine your systems. Embrace the future of logistics and let us help you enhance your operational efficiency, accuracy, and scalability. Reach out today to learn how a partnership with StreamTech can transform your 3PL operations.