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  • Use Warehouse Automation to Reduce Shipping Errors And Associated Costs

    Use Warehouse Automation to Reduce Shipping Errors And Associated Costs

    Common Shipping Errors: Problems & Solutions

    As consumers continue to increase their online shopping habits, some going so far as to prefer it to retail shopping, it’s becoming more important than ever to have efficient shipping processes in place. Unfortunately, manual shipping processes lead to common shipping errors and increased costs due to human errors. 

    Fortunately,  fulfillment automation offers a wide range of solutions to these challenges, assisting e-commerce businesses that want to streamline their shipping processes.

    In this article, we’ll explore how businesses can use our shipping automation to optimize their processes to reduce shipping errors and associated costs.   

    Rate Shopping by Dimweight

    According to a study of online retailers, 65% said that failed or late deliveries are a significant cost to their business. 

    Problem

    Improperly priced and processed packages can harm a business’s bottom line by increasing expenses and potentially causing delivery delays. Inaccurately assessing the appropriate carrier information (such as weight and dimension)  for a package can result in returned mail or back charges due, resulting in extra fees that accumulate rapidly, especially for large-scale shipping. Under-estimating weight or dimensions costs money in back charges from the carrier, and over-estimating them means you’re paying more than you need to.

    As an example, say a business ships by weight and forgets to consider the dimensions of a package. For the purposes of the example, let’s say they sell custom body pillows. These products don’t weigh much, but they’re also quite long. Despite calculating the weight, carriers now charge by dimweight, dimensional weight, also known as volumetric weight.

    In April 2022, the United States Postal Service introduced the USPS Nonstandard and Dimensional Non-Compliance fees to crack down on merchants who don’t put correct postage and those who ship parcels whose dimensional size affects their ability to ship as many parcels as possible. This change comes well after the 2015 changes UPS and FedEx made to recoup lost revenue.

    If a package’s dimensions are not provided, you will be charged a fee of $1.50. If the dimensions are incorrect, it is a fee of 25 cents. Other carriers implement similar charges. While these charges may seem minimal, they can add up quickly if you ship out multiple orders.

    To demonstrate how quickly these tiny charges can add up, say you ship out 7,000 packages per hour or 150,000 daily. If half of those packages incur carrier back charges and fees of $1.50, the total fee cost alone adds up to $112,500. Therefore, accuracy and dimweight are critically important. 

    Additionally, inadequate postage can lead to delays that can damage a company’s reputation and decrease customer satisfaction. Late or undelivered packages can result in missed opportunities, lost sales, and unsatisfied customers. In fact, according to PwC, in the United States, 17% of consumers will stop purchasing from a brand or company after one bad experience, and 59% will stop after several bad experiences. 

    Solution

    Weight, dimensions, and accurate carrier and recipient information are required for a completely successful shipment. Relying on a person to manually weigh and measure the dimensions of each package will result in human error, which leads to carrier chargebacks. Additionally, some traditional dimensioning systems may not be capable of measuring irregularly shaped packages.  

    If this is your first foray into automating your warehouse or shipping center, considering an all-in-one scan, weigh, dimension, print, and apply shipping system is an easy way to reduce shipping errors due to incorrect postage. 

    These systems are often referred to as SLAM systems (Scan Label Apply Manifest), a term that was initially championed by Amazon during their push toward automating their fulfillment centers.  SLAM systems are highly accurate, using scanners, order ID barcodes, and cameras with verification parity checking at every stage of the process. Orders only ship when the carrier label and LPN (License Plate Number, a unique order ID) information match, ensuring nearly 100% accuracy.  This level of accuracy is actually of paramount importance for the automation to even run successfully.  

    SLAM systems such as StreamTech’s Sprinter™ calculate weight and dimension measurements simultaneously and with nearly 100% accuracy.  Weight is captured along a conveyor scale. For dimensions, there are a few methods. Many dimensioners use LiDAR sensors and 3D imaging technology to capture a package’s length, width, and height.  Others can capture dimensions using a light curtain that can be effective at calculating dimensions for longer packages. After aggregating the dimension and weight data, the system interfaces with your Warehouse Management System (WMS) or multi-carrier system to ensure the measurements correspond with the order, calculate carrier shipping costs based on the measurements, and print the postage label. Not only does this prevent accuracy errors, and help with label compliance, but it also improves efficiency. 

    Order Accuracy Verification

    When a customer receives the wrong item, it is commonly due to an error in the picking stage. This could be due to two similar-looking items or an incorrectly stocked item.

    23% of e-commerce returns are due to customers receiving the wrong item.

    Problem

    When a customer receives an item that differs from what they ordered or an incorrect quantity of items, it is a serious expense for your business. First, there is any possible fallout of the customer’s negative experience; this can be a negative review, the loss of future business, or, worse, both. 

    To protect your reputation, you may let the customer keep the incorrect item free of charge. This means you still need to pay for the replacement stock of the item you accidentally shipped out. This already affects your profit margin on this order. You also have to ensure the customer receives the correct item or number of items. 

    When you send the correct item or additional items to the customer, this incurs more operational costs. The entire pick, pack, and ship process starts over from scratch. This means you have to pay for the labor and materials it takes to ship the item, and chances are you’ll have to spend more on shipping costs to expedite it and keep the customer happy. 

    Not only that, but you also have to pay for restocking any items you incorrectly shipped out to ensure you have proper inventory levels – and double-check the quality of the returned item to avoid repeating the process if a damaged product is shipped to the next customer.  For all of the above reasons, many retailers and 3PLs have opted to skip this process altogether and let customers keep incorrect items.

    Solution

    StreamTech offers a variety of different picking automation solutions to avoid mispicks and improve accuracy, all driven by the StreamTech WCS software. 

    One option to reduce shipping errors due to incorrect products or quantity of products is a pick-to-light system, which aids in manual picking by guiding employees to the proper aisle, SKU, and bin location, and helps them associate the proper items and quantities to the order they belong to. With this type of system, lights, colors, mini displays, and tablets can be used, and each pick is confirmed by the press of a button and can be verified throughout each step by the scan of any number of barcodes (either on the cart, aisle, bin, SKU, or order).

    Other options may include voice-based or robotic-assisted picking, using a hybrid of these options to reduce human walking travel. 

    All of these systems are designed to improve picking accuracy and increase the speed at which your employees pick. 

    As a second quality assurance step, some warehouse operators employ a checkweigher, which can serve the dual purpose of capturing necessary weight data of each order, as well as verifying weight against a predetermined calculation of the order (this works if weights are already well documented for all SKUs in the WMS). During the picking and packing process, a checkweigher integrates with Warehouse Control System (WCS) software; as a package is weighed, the weight is sent to the WCS software to ensure it is within the acceptable range listed for each item in the order. If the package is too light or heavy, the checkweigher will alert you. 

    Using a checkweigher eliminates the risk of human error while increasing order accuracy, which in turn increases customer satisfaction. 

    Packaging Issues

    When a customer receives a damaged product, it can have serious implications on your business. In fact, 20% of e-commerce returns are due to damaged products. 

    Problem

    Improper packaging is one of the leading causes of customers receiving damaged products, which is costly for many businesses. Damaged products result in customer complaints and negative reviews, the potential loss of a repeating customer, as well as the costs to replace the product and ship it back out. 

    There are many reasons inadequate packaging can lead to a customer receiving a damaged product, including:

    • Improper Dunnage (void fill): If the items are improperly protected, the order could arrive damaged. In many cases, adding dunnage is a very manual process with guesswork. Operators visually determine what looks right and tear off some dunnage.  Sometimes operators may overfill and sometimes underfill.  There are ways to automate void detection using sensors that dispense the appropriate amount each time.
    • Poorly Constructed Packaging: Constructing RSCs by hand will result in human errors in sealing or assembling the flaps correctly. A wide range of carton erecting systems are available that will build trays (then lids) or custom-sized RSCs specifically designed for the items inside each order, with consistent results.  
    • Poorly Sealed Boxes: In the event that the flaps are sealed poorly, the box can pop open, and contents can spill out. In some cases, if a box is sealed poorly, the automated shipping label process can “seal” the box temporarily enough just to get through the automation, only for the contents to be lost later.  StreamTech has employed a box closure technology to address this QA/QC issue prior to labeling for this exact reason.
    • Improper Carton Selection: Many WMS software systems have what is called cartonization software built into them, which is the process by which the pickers know which carton is the best one to fit all the items in the order safely, efficiently, and for the best shipping rate. Poor carton selection can result in an excess void or overly dense containers that cannot support the items inside.    

    Solution

    If employees are manually packaging products, it will inevitably introduce human error into the process. Additionally, if you already rely on fulfillment automation, the integrity of the box is vital to the success of your automated processes. 

    A variety of solutions can be employed to reduce shipping errors caused by packaging issues. In the case of a manually-constructed RSC, there are semi-automatic tapers and box erecting systems that can hold down and seal the bottom flaps while orders are packed and then allow the operator to push the box through to seal the top flaps. If the volume is higher and the ROI is justifiable, a wide range of on-demand carton erecting systems can be added to ensure a consistent, right-sized carton every time.  

    In fact, a carton erector can be a fantastic addition to end-of-line automation, as it provides a high level of assurance for the package’s integrity. For example, if you’re using a SLAM system, the box needs to be properly closed. Otherwise, it can lead to issues with the print-apply and dimensioning systems. In other words, the shipping label won’t properly adhere to the package, or the dimensional measurements will be incorrect. A package unable to be delivered for a missing label or incorrect dimensions results in hefty chargebacks from your carrier and a dissatisfied customer. 

    Additionally, a package that isn’t properly sealed can even result in damage to your labeling system, which is expensive to repair. It can also result in damage to the customer’s product inside.

    In the case of poorly closed or assembled boxes, StreamTech can provide a package inspection system that acts as a QA/QC to ensure the box is constructed properly. This system can be incorporated directly after a box erector or a manual pack station, just before inducting packages into our Sprinter™ SLAM shipping system, which then dimensions, weighs, prints and applies shipping labels, verifies the process, and then can control sortation.   

    Wrong Address

    Incorrect or incomplete addresses cause 74% of failed deliveries.

    Problem

    Incorrect shipping addresses can impact businesses, increasing costs and customer dissatisfaction. When products are shipped to the wrong address, a business may incur additional shipping fees and labor costs to reship the product to the correct address or deal with the fallout of the customer not receiving their order. These costs can quickly add up and impact the bottom line. Moreover, incorrect shipping addresses can delay delivery, leading to negative customer reviews and harming the business’ reputation. 

    Solution

    Automating your shipping using StreamTech’s Sprinter™ Shipping Station is a simple way to reduce shipping errors due to wrong addresses because it has a deep connection to your order database and it has verification built-in. 

    The Sprinter relies on a tight connection to your TMS (Transportation Management System) software, or multi-carrier software. This connection allows us to gather the data of the package, transmit that data, and receive the shipping label associated with that order. The system scans the LPN or identification barcode at the beginning of the process, records dimensions and weights, and then applies the shipping label it receives from your TMS. After applying that label, there is a verification scan that takes place, along with a parity check.

    During the parity check, the WCS ensures that the shipping label is correct and that it matches the order associated with the LPN that it’s supposed to.  

    By leveraging our Sprinter™ Shipping Station, businesses can improve shipping accuracy and efficiency while minimizing the impact incorrect addresses have on their bottom line. 

    Conclusion

    Implementing fulfillment automation is a simple and effective way to reduce shipping errors and their costly consequences. 

    If you’re ready for automation, contact us today.

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  • Why Is Automated Scanning So Important When Designing Fulfillment?

    Why Is Automated Scanning So Important When Designing Fulfillment?

    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

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  • Meet Label Standards With Label Compliance

    Meet Label Standards With Label Compliance

    What Is Label Compliance?

    Label compliance is a process aimed at ensuring that a product label fulfills all the relevant requirements and standards within a specific industry. It involves creating and affixing labels to products that must meet specific guidelines. Numerous organizations play a pivotal role in overseeing these regulatory measures, including but not limited to the Food and Drug Administration (FDA), Environmental Protection Agency (EPA), and other industry-specific regulatory bodies.

    The Importance Of Label Compliance

    Label compliance holds significant importance for several reasons. First and foremost, it ensures that products meet the regulatory requirements and standards set by authorities and industry bodies. It also enhances transparency and trust between businesses and consumers. Clear and accurate labeling provides vital information about a product, including its ingredients, allergens, usage instructions, and potential hazards. This empowers consumers to make informed choices and minimizes the risk of adverse reactions or misuse.

    Additionally, label compliance plays a crucial role in mitigating legal and financial risks for businesses. Non-compliance with labeling regulations can lead to costly consequences such as fines, legal actions, product recalls, and damage to brand reputation. By adhering to labeling standards, businesses can avoid these risks and demonstrate their commitment to regulatory compliance.

    Moreover, label compliance facilitates efficient supply chain management. Properly labeled products enable smooth tracking, inventory management, and logistics operations. It ensures that products are correctly identified, sorted, and distributed, leading to improved operational efficiency and customer satisfaction.

    Industry Examples:

    The legal standards for labeling often differ from industry to industry. Certain industries are stricter with labeling due to the health and safety risks associated with their products.

    • Food And Beverage Industry: This industry includes nutritional fact labels, ingredient lists, allergen warnings, expiration dates, and country of origin labels. These labels help consumers make informed choices about the products they purchase and consume.
    • Pharmaceutical Industry: Pharmaceuticals involves important information such as dosage instructions, warnings, contraindications, batch numbers, and manufacturing dates. These labels ensure that medications are used safely and appropriately.
    • Chemical Industry: Chemical products often require compliance labels with hazard pictograms, safety warnings, handling instructions, and regulatory codes. These labels communicate potential risks associated with the chemicals and provide guidelines for safe usage.
    • Automotive Industry: The automotive sector includes labels related to vehicle safety, such as airbag warnings, tire pressure recommendations, fuel efficiency ratings, and emission standards. These labels help ensure consumer safety and environmental compliance.
    • Textile Industry: Textile products may have compliance labels indicating fabric composition, care instructions, and country of origin. These labels ensure that consumers have accurate information about the textiles they purchase and use.
    • Electronics Industry: Electronic devices often include safety certifications, energy efficiency ratings, and recycling symbols. These labels help consumers make environmentally conscious choices and understand the safety standards of electronic products.
    • Medical Devices Industry: Medical devices commonly include labels with instructions for use, sterilization guidelines, unique device identifiers (UDIs), and regulatory compliance information. These labels ensure the safe and proper use of medical devices.

    These examples illustrate the diverse applications of label compliance across different industries, all aimed at providing important information to consumers, ensuring regulatory adherence, and promoting safety and transparency.

    Additionally, most large distributors and retailers will have their own UCC labeling requirements that must be on the outside of certain shipments in order to be processed and received correctly through their inventory systems.  For companies shipping to a wide range of distributors and retailers, this labeling requirement can be different for each one, and can be a headache for outbound fulfillment to get right.

    Label Compliance Experts:

    At StreamTech, we understand the challenges associated with complying to specific labeling standards. We have experienced and knowledgeable engineers on hand that have worked with companies in a variety of industries to meet all the necessary requirements.

    Our solutions encompass a wide range of needs, whether it involves meeting the stringent labeling requirements imposed by the FDA for accurate nutrition information or delivering the appropriate labels to comply with E-CFR. By leveraging our cutting-edge technology and industry know-how, we have empowered numerous businesses to navigate the intricate realm of regulatory compliance.

    Specialized labeling applications can also be incorporated into an existing or new end-of-line shipping automation system (SLAM system), where packages are already being weighed, dimensioned, manifested and carrier labeled.  Adding label compliance can make sense as an added step in the process.

    Labeling Compliance FAQ:

    Q: What is the FDA label compliance review?

    A: The FDA label compliance review is a process where the Food and Drug Administration evaluates product labels to ensure they meet regulatory requirements and standards. It involves scrutinizing factors such as ingredient lists, dosage instructions, warnings, and other information to ensure consumer safety and regulatory compliance.

    Q: What are the OSHA labeling standards?

    A: OSHA, the Occupational Safety and Health Administration, sets labeling standards to ensure workplace safety. These standards cover hazardous chemicals and substances. Labels must include information on potential hazards, safe handling instructions, and other relevant details to protect workers from risks associated with these substances.

    Q: Does EPA mandate label requirements?

    A: Yes, the Environmental Protection Agency (EPA) mandates label requirements, especially in industries dealing with chemical products. Compliance with EPA regulations ensures that labels on these products include hazard pictograms, safety warnings, handling instructions, and regulatory codes to communicate potential risks and promote safe usage.

    Q: What would happen if a product has no label?

    A: Products without labels can face serious consequences. Non-compliance with labeling regulations may lead to legal actions, fines, and product recalls. Additionally, lacking essential information could pose risks to consumers who may not be aware of ingredients, usage instructions, or potential hazards.

    Q: Are labels mandatory, and what must be on them?

    A: Yes, labels are mandatory, and they must include crucial information depending on the industry. For instance, in the food industry, labels should provide nutritional facts, ingredient lists, allergen warnings, and expiration dates. In pharmaceuticals, dosage instructions, warnings, batch numbers, and manufacturing dates are essential.

    Q: What information is legally required to be on packaging?

    A: Legally required information on packaging varies by industry. Common requirements include product identity, quantity, manufacturer information, and, in some cases, specific details like nutritional information or safety warnings. Compliance with these regulations ensures transparency and consumer safety.

    Q: Can I handwrite a shipping label?

    A: Generally, handwritten shipping labels are not recommended. Most shipping carriers prefer printed labels for clarity and accuracy. Using handwritten labels may result in processing delays or even rejection by carriers. It’s advisable to use printed labels generated through shipping platforms for smoother logistics.

    Q: Do you have to pay for shipping if you print your own label?

    A: Yes, even if you print your own shipping label, you are still responsible for the associated shipping costs. The act of printing your label doesn’t automatically cover the shipping expenses. These costs are typically paid through the chosen shipping carrier or platform during the label creation process.

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