• Cold Chain Logistics: Automating for Freshness, Consistency and Scale

    Cold Chain Logistics: Automating for Freshness, Consistency and Scale

    Estimated reading time: 10 minutes

    For e-commerce companies, timing is everything and customer satisfaction is king, which makes fulfillment and logistics one of the most critical drivers for success. Getting orders out the door quickly and accurately – that’s the business. But for cold-chain warehouse operators (brands who ship temperature-sensitive goods like meal kits, pet food, or pharmaceuticals), the bar is even higher. Each box must arrive fresh, safe, and on schedule – not just once, but again and again.

    In this article, we will explore the challenges that cold chain logistics companies have, and how automation transforms the challenge of cold-chain subscription fulfillment into a repeatable, efficient process that keeps customers loyal while protecting margins.

    TL;DR: Cold chain logistics depends on perfect timing, accuracy, and consistency to keep products fresh and customers satisfied. Automation links every stage of the process, from picking to packing to shipping, creating a reliable, data-driven workflow that reduces waste, protects margins, and builds customer trust.
     

    In cold chain logistics, the biggest challenge isn’t just speed, it’s timing. Perishable subscription boxes must reach customers within a narrow delivery window and before the ice melts and the food spoils. The real crunch happens late in the week: if shipments don’t reach carrier distribution hubs before Friday’s cutoff, they risk sitting in trailers or hot warehouses all weekend. Those idle hours can destroy product integrity, trigger refund requests, and erode customer trust faster than any other fulfillment mistake.

    That’s why many cold-chain operators design their logistics calendars around carrier schedules. They front-load shipping earlier in the week to ensure deliveries arrive fresh before the weekend, even if most new subscriptions technically start on Saturday or Sunday. The goal isn’t just to get boxes out the door quickly, but it’s to control when they land on the customer’s doorstep, ideally when someone is home to receive and refrigerate them immediately.

    Managing that level of precision requires data-driven orchestration. Smart operators use order management systems (OMS) paired with their multi-carrier software to balance multiple variables at once—customer preferences, carrier performance by region, delivery service levels, and internal capacity. These tools help spread fulfillment activity evenly across Monday through Thursday, preventing a Monday surge while keeping Friday clear for exceptions and express orders. In cold-chain logistics, a well-timed ship plan isn’t just operational efficiency, it’s product survival.

    Cold-chain subscriptions often involve fewer SKUs than traditional e-commerce operations. While that simplifies inventory management, it also raises the bar for speed and accuracy at scale. In chilled environments, a single mis-pick can lead to costly replacements, chargebacks, and product waste.

    Automation gives operators the control needed to eliminate that risk. Systems like VelocityPick™ use pick-to-light technology and real-time tracking to maintain precision. Clear visual indicators guide each operator to the correct bin location and quantity, allowing teams to rotate product and change SKUs without memorizing layouts. These systems also track individual picking accuracy – vital for training, accountability, and continuous improvement.

    Lot number tracking is also critical in food fulfillment, and pick-to-light systems can be configured to associate SKU locations with their corresponding lot numbers to maintain full traceability when inventory rotates. By integrating pick data through StreamTech’s WCS, warehouses can sync data across picking, verification, and inventory status with their WMS (Warehouse Management System).

    Vision systems such as PackSight™ add another layer of accuracy. Modern camera-based tools can capture an image of every open carton, using machine learning to verify contents and tie each image to an LPN for easy traceability. Combined with checkweigh verification (comparing actual vs. expected weights), these technologies create a closed loop of confirmation from picking to shipping.

    Subscribers crave order personalization. It’s what transforms a monthly shipment into an ongoing relationship. Studies consistently show that customers prefer to build a genuine connection with the brands they buy from. Many see the brands they subscribe to as an extension of their own personal identity – their values, routines, and even lifestyle choices. This connection fuels what marketers call brand power – the influence a brand holds over customer loyalty and long-term purchasing behavior. In the subscription world, that power is earned through authenticity and personalization.

    For cold-chain providers, this emotional connection directly impacts retention. Customers are far more likely to stay loyal and renew when the order feels uniquely theirs, whether it’s a meal kit tailored to a family’s dietary needs or a pet food blend matched to a dog’s health profile. When every box feels thoughtfully packed “for me,” loyalty follows naturally.

    Through document automation, businesses can personalize every touchpoint at scale – custom packing slips (“Bruce’s food just left the kitchen”) or dynamic marketing inserts that reflect seasonal preferences, rewards points systems and/or personal milestones such as birthdays or subscription anniversaries.

    Value-added experiences, like telehealth access for pet owners or surprise freebies for long-term subscribers can be seamlessly integrated through insert feeders and workflow automation. This approach keeps fulfillment efficient while maintaining that human sense of care that strengthens brand power, and keeps customers coming back.

    In cold-chain operations, packaging directly affects both temperature control and profitability. Every ice pack, liner, and layer of insulation impacts weight, cost, and compliance. Finding the right balance is critical – too little protection risks spoilage, while too much adds unnecessary cost and shipping surcharges.

    Automation introduces the control necessary to manage those variables. Systems like the Sprinter™ automatically weigh and dimension each carton, apply the shipping label, and verify before heading downstream to sortation. Integrated checkweigher data confirms that each carton’s packed weight aligns with order expectations. When a package deviates out of the expected range – whether from a missed SKU, excess ice, or incorrect packaging – this triggers the system to divert down a quality lane for further inspection.

    It’s not uncommon for box weights to climb as temperatures rise, and packers tend to pack more ice indiscriminately. While understandable, those extra pounds can push shipments over carrier weight thresholds and result in fines. An end-of-line checkweigher provides a safeguard, verifying each carton’s weight before it’s manifested and ensuring every order remains compliant and cost-efficient.

    Consistent packing also defines the customer experience. Meal kits, for example, require strict sequencing—frozen items on the bottom, produce and instructions on top. While this precise packaging process still requires a human touch, semi-automated systems such as carton erectors, tapers, and visual work aids can make a significant impact. Even simple enhancements like digital displays showing the required quantity of ice or relay switches that advance cartons once ice steps are complete can help packers maintain accuracy, speed, and consistency.

    Shipping timing and operational control define success in cold-chain logistics. Unlike apparel or electronics, perishables can’t linger on a dock, in a trailer, or at a carrier hub for long. Every hour in transit affects freshness, compliance, and customer satisfaction.

    As subscription volumes grow, manual processes struggle to keep up. Small inefficiencies compound—one picking error multiplies across hundreds of boxes, and one inaccurate weight can trigger thousands in chargebacks. That’s why timing, visibility, and scalability must work together.

    StreamTech’s Warehouse Control System (WCS) brings order to that complexity. By connecting scanning, weighing, dimensioning, and labeling systems into one orchestration layer, it provides real-time visibility from intake through ship confirmation. Each box can be traced, audited, and verified—critical for cold-chain compliance documentation and carrier billing accuracy.

    When paired with an OMS or WMS, these systems can use live carrier data to plan shipping cutoffs based on ZIP codes, regional weather events, and transit times. If a storm or heat wave threatens, orders can be automatically held or released early to protect product integrity. Together, these integrations turn what used to be guesswork into a predictable, data-driven shipping process that scales effortlessly with growth.

    Cold-chain subscription logistics isn’t just about moving boxes, it’s about maintaining trust. Every order represents a promise of safety, freshness, and reliability.

    StreamTech’s automation suite delivers on that promise. From VelocityPick™ for rapid order assembly, to Sprinter™ for precision weighing, dimensioning, labeling, and verification, to the WCS that orchestrates it all, our technology connects every step into a single intelligent system.

    • Reduced spoilage and carrier chargebacks
    • Smoother weekly order volume
    • Consistent, compliant customer deliveries
    • A scalable, data-backed foundation for growth
    • Timing matters most: Cold chain operators plan around carrier schedules to prevent weekend delays and ensure deliveries stay fresh.
    • Accuracy protects quality: Pick to light systems, lot tracking, and vision tools maintain precision and full traceability for every shipment.
    • Personalization improves retention: Automated inserts and tailored packing slips help brands create meaningful connections with subscribers.
    • Packaging impacts profit: Automated weighing and verification systems balance protection, cost, and compliance for each order.
    • Visibility creates control: A unified warehouse control system connects all automation tools for real time insight and smarter planning.
    • Automation supports reliability: StreamTech technology transforms complex fulfillment challenges into consistent, scalable performance.

    If your subscription model depends on freshness, timing, and customer trust, StreamTech can help you design automation that keeps every box on schedule and in perfect condition.

  • Print On-Demand Fulfillment: Solving Challenges for Flats, Canvases, and Other Custom Printed Goods

    Print On-Demand Fulfillment: Solving Challenges for Flats, Canvases, and Other Custom Printed Goods

    Estimated reading time: 7 minutes

    Print On-Demand products don’t behave like cartons—and automation systems that overlook them will end up with material handling problems. At StreamTech, we design fulfillment automation that accounts for the realities of these “non-standard” products – from day one.

    From flat mailers that slip beneath sensors to canvases that extend beyond traditional conveyor widths, our focus is on building systems that keep every product moving smoothly and accurately, to deliver the ROI you are looking for.

    Our first example for printed goods – flat items (posters, envelopes, prints, and photographs). These products look simple but create more problems than many operators expect.

    • Flats ride beneath traditional photoeye sensors built into conveyor rails, causing missed detections.
    • Inline scales need to be sensitive enough to register such lightweight products.
    • No vertical dimension exists to capture – so a dimensioner may not be needed, if you already know your L x W.
    • Flats will need a top scanner for the LPN. But watch out because if the shipping label covers the LPN, downstream scan verification is lost.
    • For completely flat mailers without any padding, it is important to specify the correct label applicator that has some pressure sensitivity to prevent aggressive tamping directly on the equipment.
    • Between-the-roller mounted photoeyes that are either set at an angle, or positioned to scan vertically to see any item passing through.
    • Specialized lightweight scales ensure flats are detected and weighed reliably.
    • Overhead LPN scanning before label application, with flats aligned consistently and labeler positioned to avoid covering the LPN.
    • Slim, sturdy mailers that prevent creasing.
    • Workflow design that batches similar-size items to keep processes efficient.

    The takeaway: without specialized detection, weighing, and scanning, flats become a weak link. With the right design, they flow as smoothly as cartons.

    One benefit that works for flat items that works as a positive – they can sometimes be picked in batches and fed using either a pick-and-place robot, or feeder. This allows the picking process to be more efficient, allowing operators to run large batches of orders without having to manually induct them one at a time. Be careful though with feeding items of varying thickness. Consistency is key with feeders.

    Oversized prints and canvases are fragile, irregular, and often larger than what standard conveyors and scales can handle.

    • Sometimes large canvases may be too big for traditional accumulation conveyor widths. We can work around this by designing the conveyor to be rollers-high, without rails so that if necessary, oversized canvases can hang over the edge (some).
    • Light curtain dimensioners capture length and width when overhead dimensioners can’t span the full field of view.
    • Multi-scale setups—either in series for length or side-by-side as multi-belt scales—ensure accurate weight capture across the product’s footprint.
    • Packaging with reinforced corners and cushioning reduces risk in transit, while carrier selection should favor those experienced with large-format items.
    • Creative scanning may be required if the LPNs are inside the box. We can develop a system to label the flap with the box open if necessary.

    The takeaway: while traditional e-commerce may see oversized products as a very small share of the order profile, print on demand companies may see canvases as their primary order volume. Meaning we have to consider proper weighing, dimensioning, and packaging to design the system around their order profile.

    Textiles such as custom blankets are among the fastest-growing print on-demand items—and among the hardest to automate. Their irregular shapes and bulk create multiple hurdles:

    • Shrink wrapping: must secure the product without damaging it.
    • Packslip scanning: documents placed inside wrapping much remain visible and scannable.
    • Label application: uneven surfaces require adaptable print-and-apply systems.

    Integrated workflows that handle wrapping, scanning, and labeling together prevent textiles from slowing down an otherwise smooth operation.

    Opaque baggers are efficient for certain SKUs but create a verification gap.

    Here’s how it typically plays out:

    1. The LPN is scanned upstream.
    2. A shipping label is created an applied.
    3. Once sealed inside the opaque bag, the product can no longer be re-verified downstream—the identifier is hidden beneath the bag.

    Automation must account for this by ensuring scanning, label placement, and verification happen before sealing. Otherwise, the process loses visibility and traceability at a critical point. RF labels can be a possible solution as well, although they present their own challenges to dial in the scanning range and shield around the scan area.

    Custom print items—flats, oversized canvases, textiles, and bagged goods—aren’t “exceptions” to path later. They have to be part of system design from the start.

    Ignoring them leads to costly mistakes:

    • Missed scans and misapplied labels
    • Misclassified weights and shipping errors
    • Manual rework that slows throughput
    • Customer dissatisfaction and rising costs

    Each challenge has a proven automation fix—scan tunnels for thin mailers, custom conveyor design for large overhand products, integrated workflows for textiles, and verification logic for bagged items. With these details engineered upfront, fulfillment stays scalable, efficient, and competitive.


    Real Results: How Pic the Gift Scales Custom Print

    Pic The Gift streamlined fulfillment for custom products like blankets by automating scanning, weighing, labeling, and verification. The result? Faster throughput, lower labor needs, and smooth peak-season performance.


    Automation doesn’t succeed by covering 90% of SKUs and leaving the rest for manual handling. Success means building workflows that account for the details of your package profiles.

    Whether you ship envelopes by the thousand, oversized canvases by the pallet, or blankets by the day, a system built with these realities in mind ensures accuracy, efficiency, and growth.

    Because in custom print on-demand fulfillment, the details aren’t minor—they’re the difference between meeting expectations and falling behind.

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

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

    Estimated reading time: 8 minutes

    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.

    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.

    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 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.

    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.

    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.

    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.

    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.


    Supplements and pills blister packs. Pack of pills

    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.


  • Common Pain Points for 3PLs

    Common Pain Points for 3PLs

    Estimated reading time: 4 minutes

    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.

    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.

    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. 

    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.

    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.

    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.

    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

    3PL Fulfillment Automation: Transforming Processes for Operational Efficiency

    Estimated reading time: 10 minutes

    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.

    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.

    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 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.

    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.

    Integrating fulfillment automation into 3PL warehouse systems brings a multitude of benefits, essential for maintaining a competitive edge in today’s logistics market: Yet long-term results depend on an operational excellence framework that sustains efficiency, accuracy, and service consistency across sites.

    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.

    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.

    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.

    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:

    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.

    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.

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

    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.

    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.

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    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.