When it comes to fulfillment automation, receiving and shipping systems might look similar on the surface—scan tunnels, conveyors, labelers, sort logic—but the operational goals behind each are fundamentally different. Receiving systems are designed to capture and verify inbound inventory. Shipping systems are built to finalize and release outbound orders. Designing automation for each requires throughput equipment, tailored logic, and software integration.
Below, we break down the key differences and design considerations for receiving vs. shipping automation.
(Pictured: Receiving System Sorting to Many Store Locations)
Receiving – First Steps: Unload, Identify & Gather Data
Receiving Part 1: Rapidly unload, identify all incoming orders, while recording accurate data about all items received.
The initial goal of a receiving system will be to aid your team in unloading the truck rapidly, while scanning all items, recording the data about each one for reporting purposes. This initial induction point is critical in keeping accurate account of what SKUs are in inventory, how many, and also holding the delivery truck accountable for missed shipments.
Key challenges in the initial unloading process:
Multi-sided scan tunnels are often necessary due to unpredictable barcode placement on items coming in from the truck
Difficult-to-scan barcodes due to inconsistency – some UPC, some LPN, some inkjet while others are labels
Receiving systems need to be able to keep a count of all items received from the truck in order to match them against expected quantities
Logging scan and label data for feedback to the inventory management for delivery (truck) auditing
Receiving – Next Steps: Label, Verify, Route
Receiving Part 2: Label, Verify and Route Inbound Shipments.
The second step of a receiving system is to determine what action needs to be taken on each of the inbound items. Whether you’re unloading trailers of full cartons, mixed pallets, or individually packaged goods, the goal is to scan, label, and direct products to storage, crossdock, or staging for retail store replenishment as efficiently as possible.
For some companies, the labeling process means simply routing for a store, while others will actually weigh, dimension and manifest each product straight out to the dock in a crossdocking configuration direct to the consumer.
Other companies may simply need to put their own internal SKU tracking label on each product, and route them by product code or category.
Key actions for the receiving system:
Labeling logic for compliance vs internal routing, or crossdock manifested shipments
Exception handling – diverting all unknown, unreadable or mismatched items to QA station for individual review
Shipping – System Handoff: Scan, Label & Sort
Identify the order, gather weights, dimensions, and manifest with the carrier. Shipping automation takes over after orders are picked and packed. Systems like the Sprinter™ ensure packages are accurately scanned, labeled, and sorted to the right carrier lane based on rate-shopping and service levels.
Key features in shipping automation:
Single-sided scan tunnels with controlled label orientation
Carrier label generation via WMS, ERP, or multi-carrier software
Rate shopping and manifesting
Sortation by carrier, service level, or zone
Scanner and Labeling Design
Receiving systems need to read whatever shows up—labels on any aide, sometimes upside-down, simply due to the fact that the team unloading the truck will be moving quickly, and the varieties of product manufacturers will have barcodes in different locations on their boxes. These barcodes may be labeled, or inkjetted on. That calls for high-performance, multi-sided scanning.
Shipping, on the other hand, benefits from label consistency because the outbound process is controlled by one party, enabling faster, lower-complexity single-sided scans.
Similarly, receiving label logic varies by use case. Some cartons may need store tags, compliance labels, or shipping labels (in the case of crossdock). Outbound shipments almost always need a carrier label, triggered by LPN, order ID, or WMS handshake.
Data & System Integration
Inbound: Receiving automation often relies on pre-loaded shipment data (e.g., ASN or inbound manifest). As each item is scanned, the system verifies its identity, applies the correct label, and triggers a routing action. Real-time reconciliation helps spot discrepancies—like missing or extra cartons—early in the process.
Outbound: Shipping automation typically works off predefined orders. As soon as a carton enters the line, it’s linked to a known order. The system verifies the match, calculates shipping rates, requests a label, and routes the package to the correct carrier.
Exception Handling: Different Triggers, Same Need for Visibility
Both areas demand visibility and smart exception routing. StreamTech’s WCS enables real-time alerts, logging, and diagnostics across both systems.
Comparing Core Design Requirements:
From Receiving to Shipping: Scalable Fulfillment Starts With the Right Fit
While both receiving and shipping automation leverage scanning, labeling, and sortation technologies, their business logic diverges. One is built to ingest and validate unknown inventory; the other is engineered to confirm and dispatch customer-ready orders.
Recognizing these distinctions—and designing for them—is key to building automation that scales with your operation. Whether you’re upgrading a receiving dock or adding an outbound line like the Sprinter, StreamTech helps engineer the right fit for each phase of your fulfillment process.
Warehouse fulfillment sounds simple: Get an order, pick the order, pack and ship. What could be more straightforward?
But any veteran of the industry will tell you that warehouse fulfillment has its fair share of complexity. From scales and scanners to conveyor lines to multiple software controls, warehouse fulfillment has become an increasingly complicated and increasingly technical aspect of high-volume businesses. Automation and software have a huge role to play here, especially when it comes to SLAM (Scan, Label, Apply, Manifest).
If you’re in high-volume fulfillment, distribution, or manufacturing, SLAM is the backbone of your shipping operation—and if you’re not automating it, you’re leaving money on the table.
Demystifying SLAM: The Backbone of Warehouse Fulfillment Efficiency
For any warehouse operation, SLAM should be a comprehensive process designed to ensure every package is handled with precision. Here’s what that looks like at each stage:
Scan: Capturing Critical Data Upfront
Before a package reaches the labeler, the scan stage ensures that every shipment is identified, measured, and verified in real-time. Using in-motion scales, high-speed barcode scanners, and machine vision systems, the SLAM process captures essential data such as weight, dimensions, serial numbers, and IMEIs. This early quality control step is crucial—if the system doesn’t have an accurate read on a package before labeling, it risks downstream errors that can cause misroutes, delays, or compliance failures.
Scanning isn’t just about reading a barcode; it’s about verifying accuracy at the first possible touchpoint. If a package is missing required data, flagged as overweight, or doesn’t match what the warehouse management system (WMS) expects, the SLAM system can trigger exception handling workflows before the package moves further down the line. Unlike manual inspections, which can be slow and inconsistent, this automated QC can quickly verify correct fulfillment (or redirect errors) at high throughput speed, all while keeping records of the task.
Print and Apply: Labeling at Volume
In high-volume fulfillment, print and apply labelling systems are indispensable for ensuring accurate, efficient labeling. Labelers should be specified in terms of hourly, peak hourly, and daily throughput. In higher-speed systems, it is wise to use redundant labelers; a good SLAM system should be able to recognize that a labeler is either having a problem or it’s out of consumables, taking it offline and adjusting the flow of items to other labelers.
All this said, good print and apply labeling systems do more than just affix a shipping label—they play a critical role in processes such as compliance labeling and piggyback labeling, both of which are essential for meeting retailer and carrier requirements while optimizing workflow.
Compliance labeling is one of the biggest challenges in modern distribution. Whether shipping to Amazon, Walmart, or other major retailers, warehouses must meet strict labeling specifications that dictate placement, barcode clarity, and content. Failure to comply can lead to chargebacks, shipment rejections, and costly delays. Print and apply systems automate this process, ensuring that every label is precisely applied and meets compliance requirements without the risk of human error.
Another increasingly popular application is piggyback labeling, which allows for a secondary removable label to be applied over a primary label. These dual-layer labels are commonly used for returns processing, inventory tracking, and promotional inserts. With e-commerce returns at an all-time high, many retailers now require return labels to be integrated directly onto outbound shipments. Instead of separately printing and inserting return labels, a print and apply labeling system can automate piggyback labeling, reducing manual labor and increasing fulfillment speed.
Beyond compliance and piggyback labeling, there are several advanced labeling techniques that add value in specific operational contexts. For instance, double-sided pack slips use two print engines to print on both sides of the label media. This method minimizes material usage and maintains high throughput (though it offers limited space for descriptive text—a trade-off when dealing with complex orders, such as those in the aerospace industry).
Another technique is the folded pack slip, where the label is printed on one side and then folded underneath. This approach provides more real estate for longer product descriptions and documentation, though it may run slightly slower than double-sided printing. Additionally, there’s the loose thermal print, which gets tucked underneath a label and can print multiple sheets for additional documentation or proofs of fulfillment.
By integrating print and apply systems with warehouse management software (WMS) and carrier manifesting systems, warehouses can eliminate labeling bottlenecks, minimize mislabeling risks, and scale efficiently from hundreds to hundreds-of-thousands of shipments per day.
Manifest: Ensuring Accuracy Before Shipments Leave the Dock
Once a package is labeled, the package must be uniquely identified and connected to its shipment data. This manifest step ensures that all shipment data—including weight, dimensions, and tracking information—is verified, recorded, and transmitted to the carrier. Errors in the manifest stage can lead to costly misclassification errors or Dim Weight discrepancies that could result in chargebacks.
To automate the manifest stage, SLAM software needs to integrate with in-motion scales, integrated dimensioners, and high-speed barcode scanners to capture data in real-time, ensuring every package meets carrier requirements before it leaves the facility. Exception handling logic within SLAM software can flag weight mismatches, incorrect labels, or missing data before a package reaches the sorter, allowing for quick resolution.
Many shipping networks require real-time electronic manifest submission—if this step fails, packages might sit at the dock instead of making their scheduled departure. By integrating the warehouse control software (WCS) that runs the SLAM equipment with warehouse management (WMS) and transportation management systems (TMS), facilities can automate carrier selection, ensure accurate billing, and reduce shipping delays.
One crucial tip, from experience: Meticulously document the interface between your SLAM system and your transportation management system (TMS). This documentation isn’t just a formality—it’s your roadmap for future upgrades or vender changes. By clearly outlining how data flows between your SLAM software and TMS, you ensure that any adjustments or integrations can be made smoothly without unexpected downtime.
Sorting: A Final Opportunity for Automation
Once a package has been scanned, labeled, applied, and manifested, there might also be a final step of sorting packages along various lines. So it is worth including a little bit about sorting here.
Why sort? The most obvious reason is to separate shipments by carrier, ensuring that UPS, FedEx, USPS, and regional carriers each receive the correct packages. But there are opportunities that go well behind sorting by carrier: A well-designed SLAM system can integrate sorting logic into the broader automation strategy, allowing for highly intelligent, multi-layered sortation based on operational needs.
For example, advanced sorting systems can route packages based on:
Pick zone routing: Streamlining downstream handling based on where an order was picked.
Zip codes & service levels: Prioritizing expedited shipments and optimizing delivery routes.
Exception handling: Flagging no-reads, misapplied labels, or packaging errors before they cause delays.
International shipments: Sending flagged orders for customs documentation processing.
Value-added service areas: Routing orders for special handling, such as gift wrapping or bundling.
Packaging technology channels: Differentiating between bags and boxes for downstream automation.
The Future of SLAM…and Why You Should Care
Automation is the future of supply chain efficiency. AI-driven predictive logistics, machine learning, and robotics are transforming how warehouses operate. Labeling automation is no exception.
Companies that invest in SLAM automation today will be the ones that win in high-speed e-commerce tomorrow. When every second counts in fulfillment, manual labeling isn’t just inefficient…it’s a liability.
To truly harness this potential, it pays to partner with a SLAM professional who can provide a tailored plan for handling exceptions, whether it’s international shipments, product handling quirks, or connectivity issues. A provider with dedicated support and ready spare parts ensures your system remains reliable and scalable, keeping your operation running smoothly as you embrace automation for the future. If you feel you are at that stage, it’s probably time to talk to one of our engineers.
Straight from ProMat 2025: Bob Miller Talks SLAM Integration
Your Warehouse Fulfillment Operation Can Unlock Revenue:
There are many reasons why a business might have a slow year, but rarely does corporate management think to look at warehousing and fulfillment as the bottleneck holding the business back. Instead, often times leaders point to slow sales or reduced product moving through their store (e-comm or physical). But a warehouse bottleneck may be precisely what is happening in a vast majority of companies today, especially in eCommerce.
The steps of warehousing storage and fulfillment are, after all, the final steps in preparing a product for a consumer. Thus, they set the “pace” for the rest of the company. A slow and inefficient fulfillment process will mean a cap on just how big a company can grow (or, how costly it will become when demand begins to outstrip capacity). Lack of the ability to bring on new products (where will they be stored, how fast will we be able to pick them?). An inability to market them – what if the next promotional marketing turns out to be a huge success? Will your warehouse keep up? In today’s social media driven online environment, what if an influencer picks up your product? Will your warehouse be ready? Or will your warehouse become a bottleneck?
This is perhaps the greatest argument for automating warehousing and fulfillment: It removes many of the barriers that are quietly, invisibly, preventing the business from growing. The good news here is that removing those barriers does not take a giant investment. Often, warehouse managers can get a huge ROI simply by automating a few key critical steps.
Warehouse Automation Can Seem Cost Prohibitive…Until You Crunch the Numbers
Many warehouse managers have stated that they have big plans for incorporating warehouse and fulfillment automation, especially as companies continue to face a difficult labor market, shrinking margins, and warehouse bottlenecks. But costs (and relatedly, ROI) have been one of the biggest barriers to automating warehouse functions…which means that many businesses are, unintentionally, stifling their own growth.
On the cost side of things, there is not only the up-front cost of machines themselves, but also costs associated with re-designing workflows, setting up new machines and new systems, and maintaining everything once up and running. For most warehouse automation projects, those costs are balanced against the incremental gains in efficiency that a bit of automation brings about (for example, less time and manpower spent picking, sorting, packing, measuring dimensions, etc.)
But there are also costs associated with missed opportunities. In our experience, a failure to automate doesn’t just mean that warehouse functions appear a little more expensive on a spreadsheet. Manual processes can be a bottleneck that prevents scaling, flexibility, and efficiency…and thus stifles growth.
“Scaling Manually” is an Oxymoron
Automated processes are much easier to scale. Take labor as an example. Suppose your warehouse needs a crew of 20 people to handle picking, packing, and fulfillment of 2,000 orders a day. For a while, this may seem workable. But what happens when the business grows and now needs to handle 4,000 orders a day? This level of growth is common – so do you double the staff, double the overhead cost? It simply is not financially economical to double the staff—and even if you did, you would now need more space, more managers, more training, more complexity in the work schedule, and so on.
On the other hand, not doubling staff means a reduction in throughput. Those 4,000 orders will take at least two days, putting you a day behind schedule every day. Pretty soon, the warehouse will be overwhelmed, and you will not be meeting your customer expectations, or if you fulfill on behalf of others, you won’t meet your SLAs.
With automation, you can take time-consuming tasks and not only do them more quickly and efficiently but also scale them easily when necessary. For example, with an automated system that has a predetermined throughput rate (e.g.: 15 orders per minute, or 7,200 per day), now the Business Development team has the freedom to pursue new products or new accounts, with a solid understanding of just how much the fulfillment center can handle in a day.
Flexibility is Impossible When Manual
While scale has to do with long-term growth, flexibility has more to do with the ability of a warehouse or fulfillment center to adjust to more short-term or local conditions.
A great example of this is seasonality. An eCommerce business that sells products that are popular as gifts will likely see a surge in orders around the holidays. That surge necessitates bringing in additional labor. As the warehouse grows, this added need gets greater. But onboarding a fresh crew at those seasonal spikes is not a sustainable growth strategy.
Flexibility is not always seasonal, though. A warehouse might also need to adjust if it launches a new product line, forms a new partnership, or offers a new service (for example product kitting). Such adjustments take time and resources to implement, and decision-makers must consider the trade-off between those adjustments and the new venture’s profitability.
How does a manual operation deal with these changes? The best they can do is hire and fire additional labor in waves. That’s not true flexibility.
…which brings us back to automation. If adjusting to seasonal demand or a new product launch simply becomes a matter of entering a few additional parameters into the control software for a set of machines, the cost of pivoting is now much lower. Business leaders are freer to pursue these new ventures without worrying so much about how the warehouse is going to pivot to accommodate them.
For flexibility: A great example of how automation adds flexibility, let’s look at picking. StreamTech’s VelocityPick™ pick-to-light systems are designed to allow companies to add SKUs to their picking process as much as necessary without increasing the complexity of the pick process for each operator. The automation scans each order and directs each picker which bin location to pull from – the operator doesn’t have to know where specific SKUs are stored. They simply need to look for a light. This gives businesses the ability to rotate SKUs seasonally, slotting different items in and out as much as desired, without adding complexity to the pick process or slowing it down at all.
Hidden Resources, Hidden Efficiencies
Efficiency simply means doing something more quickly and accurately with fewer resources. But some efficient processes also free up resources that can be used downstream.
For example, take Goods to Person Picking. Instead of a human picker traveling down aisle after aisle, this automation uses mobile shelving that moves atop picking robots. These robot travel around and pick up each shelf, then bring the shelves to the picker. The obvious benefits of this type of automation are the increased picking speed and efficiency. The hidden side-effect of this is an increase in the storage density of the facility. Goods to Person robotic picking removes the need for wide aisles to accommodate carts, pickers, and pallet-jacks, as the robots move under the shelving units. Shelving units only needs enough space to slide past each other. This is just one of many examples of how automating can solve warehouse bottlenecks.
Simply narrowing aisles has been shown to free up around 20% of warehouse floor space, and some estimates suggest possible savings of 50%. So imagine the space that could be saved with virtually no aisles! What would you do with 50% more warehouse space? This is space that can be used for new activities (kitting, for example), or to add new product lines (or for 3PLs, new customers).
Thus, automation can often reveal additional “hidden” resources and efficiencies, such as increased storage density of the facility…all without the need to expand the warehouse or acquire another.
The Good News: Automation Can Resolve Warehouse Bottlenecks and Demonstrate ROI Quickly
There is one additional reason why automation is linked with costs: It is the mistaken idea that automation means adding large, complicated systems to the warehouse. While it can mean this in some cases, automation can be simple, too.
Sure, many warehouses are automating by adding small armies of picking robots and moveable shelves, all operated by a central software system. But that is a fairly advanced level of automation. Many smaller-scale automation projects realize a positive ROI much faster and can solve warehouse bottleneck issues.
Take the simple steps of measuring the dimensions and weight of a packed box and then printing and applying the appropriate label for carrier pick-up. These are all functions that can be done easily and automatically with StreamTech’s end of line Sprinter™, which can process about 15 cartons per minute. At that rate, the system can finish about 7,200 cartons in a typical 8-hour shift (with no breaks, naturally!)
While not as exciting as a small fleet of robots, the Sprinter™ fits the bill for automation: It can scale easily as the fulfillment center grows, it can work flexibly, and it frees up not only labor but also space that would otherwise be needed for people to sort, measure, and label packages. And this is just one example of a “small scale” automation that can realize an ROI much more quickly—typically in the first year or two.
Re-imagine what your warehouse can do! StreamTech Engineering believes that efficient warehouse fulfillment is a pivotal part of any successful business. We are passionate about designing and implementing practical, cost-effective fulfillment automation systems that deliver a return on investment for our customers. Our goal is to change the way companies perceive their warehouse, making it a key to their ongoing success and growth.
While there are a lot of elements to running a distribution warehouse—labor, accuracy, speed, costs—at the end of the day, it is a business controlled almost entirely by dimensions. The dimensions of the space in your warehouse, of the items in your racks, down to the dimensions of each box, and even the dimensions of the truck that takes each order away…all of these need to be measured accurately in order to plan effectively.
In other words, controlling these elements is critical to running a successful distribution and fulfillment center, and if not kept in check, you’ll find these dimensions controlling you. What do we mean by this?
Take something simple, like packing and shipping. At first glance, it might appear that little can be done about costs here: Customers today expect free shipping, and yet carrier costs are significant, even when everything runs smoothly. Problems like inaccurate measurements of dimension and weight, or using the wrong packaging, can incur stiff penalties…making shipping even more expensive.
While you might not have much control over the dimensions or weight of your products, getting accurate measurements of your packages for shipping—that is, getting a handle on the dim weight—can be a surprisingly effective way of controlling hidden shipping costs and chargebacks. This is made possible through the use of automated DIM weight equipment.
Understanding Carrier Costs and DIM Weight
To understand where some avoidable shipping costs are hiding, it helps to review how DIM weight works.
Dimensional weight (DIM weight) is a method of pricing based on measuring a package’s volume in relation to its actual weight. Carriers adopted DIM weight as the standard for shipping charges to optimize the space in their vehicles.
DIM weight is calculated with a simple mathematical formula:
(length X width X depth) / DIM divisor
The DIM divisor, also called the DIM factor, is a value set by carriers and represents cubic inches per pound. For example, the current DIM divisor for UPS and FedEx is 139, while the DIM divisor for USPS domestic priority mail is 194.
Thus, DIM weight is determined by getting the volume of the package (based on its dimensions) and then dividing by the DIM divisor, which is then rounded to the nearest whole number. Charges are based on the resulting DIM weight or the actual weight, whichever is greater.
Example: A box measuring 10” X 12” X 8” has a DIM weight of 7 pounds. (10 X 12 X 8)/139 = 6.9, rounded to 7. Pricing is based on 7 pounds, even if the actual weight is less. However, if the actual weight is 8 pounds or more, pricing is calculated by that number.
Carriers use DIM Weight because it affects how much cargo they can plan to carry in their trucks (planes, etc.). Reporting the dimensions of a package to the carrier is a key to their efficiency, and so they set up incentives to do this accurately. (This is also an argument for why you need a multi-carrier TMS that can connect your fulfillment systems.)
All that said, there can be more to your overall shipping bill than simply DIM weight charges. This is especially true for warehouses that work at scale: A few dollars per shipment might not make a difference when sending a dozen packages in a day, but when sending hundreds or thousands, small fees and pricing inefficiencies add up quickly.
1. Avoid Chargebacks
If a company records the wrong dimensions or weight on an outgoing package, or only lists dimension or weight but not both, two things can happen: The carrier will adjust the base charge accordingly using DIM weight, and they may also charge an additional fee (chargeback) per parcel that has missing or incorrect information. (Note that the process of correcting this can potentially delay the shipment, too.) Relying on your vendors’ inventory master lists for dimensions and weight can be problematic here—if their data is wrong, you could be paying for their mistakes! (Again, not having control of your dimensions means you will find these dimensions controlling you.)
Fee amounts vary by shipper and fluctuate over time, but range from about $1 per package to 5% or 6% of the amount of the price adjustment. Regardless of how they are calculated, chargebacks can accumulate fast as throughput increases.
We integrate dimensioning cameras and light curtain dimensioning systems into our shipping systems regularly.
For all but the smallest companies, trying to accurately measure and weigh packages by hand is a non-starter. The most basic advantages of adding DIM weight machines are that they provide thorough data and eliminate human error. They can also go much faster than any manual system. Equipment like StreamTech’s Sprinter™ can scan, weigh, measure dimensions, and print and apply labels for between 600 and 1,000 boxes per hour, without making a mistake.
2. Right-Size Packaging
Another source of unexpected shipping fees is a handling surcharge for packages that exceed size or weight limits, or that are not in a squared box. For example, boxes heavier than 50 pounds, or measuring more than 48 inches on the longest side, can trigger surcharges of hundreds of dollars from FedEx.
While the size of parcels can’t always be controlled, making sure to use the smallest box possible will help. We’ve all laughed when a huge box arrives at our doorstep, with one small item inside, accompanied by lots of void fill. This is obviously not efficient.
In many fulfillment operations, the selection of the right box size (called cartonization) is left up to an operator’s sole discretion during the packout process. A material handling systems integrator such as StreamTech, can use a cartonization algorithm integrated right into our Warehouse Control System software (WCS) and take this guesswork out of the process.
Ideally, various types of packaging equipment should be integrated which can build a box on-demand to match the size of each order. Some systems employ complex machines to build a box around each item; others build a cardboard tray, then add a lid, and still others employ robotic arms to select each box. StreamTech Engineering can work with you to help find the right equipment for your operation, all designed to control the dimensions of each box.
Automating these processes also gives managers the tools to make better, more cost-effective packaging and shipping decisions. Perhaps orders might be split into two or more cartons so they’re not overweight, disassembled to fit in a smaller box, or more suited to an alternative packing material like a padded envelope.
Optimizing cartonization eliminates wasted space in each parcel and minimizes the DIM weight—and therefore shipping charges. You’ll know ahead of time that something is heavy enough or big enough for surcharges to kick in, instead of being surprised with an invoice.
3. Rate Shopping By Carrier
Another way that automating DIM weight helps the bottom line is by allowing carrier rate shopping in real time.
Carriers differ in their pricing models and requirements, and fees change frequently. StreamTech’s WCS software has the ability to integrate with multi-carrier TMS software. Together with accurate, automated DIM weight data, the warehouse system can automatically scan the various shipping options available, choosing the carrier that offers the best price (along with other criteria, like on-time records and return stats). Once chosen, the system can create and affix the appropriate label, further streamlining the process.
Over time, this kind of rate shopping will allow your fulfillment center to find ways to use your annual carrier spend more efficiently, and without massive manual intervention.
Take Control of DIM Weight Before It Takes Control of You
Fulfillment centers live and die by dimensions; taking control of their measurement and use means controlling a large part of your costs. Here we’ve seen how automating DIM weight calculation minimizes the human error in weight and dimension estimation, allowing companies to avoid unexpected surcharges and maintain more predictable shipping costs. Additionally, the real-time rate shopping and automated labeling eliminate time-consuming steps, freeing warehouse staff to focus on higher-value tasks. StreamTech’s WCS software ensures that each shipment meets carrier specifications for both price and performance, enabling consistent, cost-effective delivery and enhancing customer satisfaction.
And while measuring DIM weight may not seem like a top priority when deciding how to automate your warehouse, implementing dimensioning equipment can have a relatively large impact. When every package can be scanned, weighed, and measured efficiently, ensuring that only accurate information is provided to the carrier, things like chargebacks, special handling fees, and bad packaging decisions become a thing of the past.
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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.
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.
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.
StreamTech Engineering was invited to provide leadership for the newest MHI industry group called SLAM (Scan Label Apply Manifest).
What Is A SLAM System?
The SLAM (Scan Label Apply Manifest) term is a shorthand acronym to describe shipping automation in large fulfillment centers. As the term describes, the SLAM line identifies parcels, interrogates their weights and dimensions, manifests them with the preferred carrier, and prints-applies and verifies the readability and accuracy of the labels. As an integrator and designer of SLAM systems, StreamTech is excited to be able to contribute to the group, as well as learn from others and help establish best practices.
What Are The Components Of A SLAM System?
StreamTech’s SLAM systems have the equipment necessary to identify packages, weigh, dimension, convey, print, and apply shipping labels, scan verify them for accuracy, manifest them with the multi-carrier system and ERP, and handle sortation routing. Our software system manages other functions such as order tracking, label templates, errors, and maintenance notifications.
Additional Features That A SLAM Line May Include:
Thin-package and polybag customization, such as special sensors
Random order association for singles items
Box inspection systems
Additional use of scale to check the order for quality control
Multiple Labelers (for increased throughput)
Semi or fully automatic bagging or box erecting and closing
SLAM systems can be remarkably cost-effective and efficient. A pre-engineered, pre-configured Sprinter™ can automate the manifesting of up to 1,000 cartons per hour and can pay for itself in as little as three months. Incorporating a SLAM system is a great way of consolidating multiple shipping stations into one, so if there is more than one shipping station, or more than 2 employees spend their day standing at scale weighing boxes, that would be a great time to begin considering a SLAM line. If you are manually dimensioning your parcel shipments, you’ll save a lot of mistakes.
SLAM lines can range from 15 CPM (cases per minute) to over 80 CPM, depending on the speed and the number of labelers. Incorporating a SLAM line can be a much-needed increase in throughput for 3PL’s or other e-commerce fulfillment operations as they grow.
So why choose fulfillment automation? There are a lot of reasons for fulfillment automation, and it ultimately comes down to increasing operational efficiency. It’s not always just about speed. As you are considering the ROI (Return On Investment) for your next warehouse improvement project, here are a few of the reasons to consider fulfillment automation. We’ll explore Labor Efficiency, LaborCosts, Speed, Customer Experience, Flexibility, and Future Growth.
But before we explore the reasons for automation, let’s take a look at the competitive eCommerce landscape and how it’s changing.
Booming eCommerce Growth: Automate Or Miss Opportunities
Fulfillment automation is no longer just for the big players. In order to understand the growing demand for fulfillment automation equipment, let’s first take a look at consumers’ penchant for eCommerce shopping, because they have a correlation.
The pandemic changed that and accelerated eCommerce growth. As consumers were pushed toward a digital life, with fewer in-person events, gas money, and stimulus money to spend, online shopping soared. From Q1 2020 to Q2, however, it grew 37%! During this time, Amazon lost market share, down from 43.8% of all eCommerce sales to just 31.4%. The other top 100 online retailers besides Amazon had a 74.1% share of eCommerce growth, up from 49.4% in 2019.
The above numbers point to a trend – consumers have increased spending, and are spreading their shopping around a wider variety of retailers. If the effect is measurable on the top 100 retailers, it tells us fulfillment automation is not just for the big guys.
Labor Efficiency:
For most fulfillment operations, it is inefficient for employees to perform lots of small repetitive manual tasks, such as scanning, label application, box closure, or sorting. By introducing automation to perform these types of tasks, one employee can now oversee the system, covering multiple tasks with one person, and freeing up the remaining staff to be productive in other areas.
Taking away the burden of repetitive manual tasks and transferring them to more supervisory roles eliminates dangerous situations. Making the operation more ergonomic and less burdensome means employees are less fatigued and less prone to injury.
The cost of manual labor is not fixed – it is subject to increases to match the cost of living. As inflation continues, and societal and governmental pressures push for wage increases, companies are wise to look at automation to minimize this risk. Additionally, manual labor comes with other costs such as liability insurance, personal protective equipment, and health benefits. Optimizing labor also has advantages when it comes to labor shortages. The labor force has seen a reduction in the number of general laborers, which makes automation the next logical step.
Costs:
Aside from the cost of labor, there are other costs associated with fulfilling orders that automation can help reduce. For example, fulfillment automation introduces opportunities to reduce shipping costs. Adding the ability to measure dimensional weight allows for more accurate shipping charges, as most carriers are no longer just charging based on the weight of the carton, but also on its dimensions of it. Another shipping cost reduction comes with the ability to rate shop carriers and ship by the most efficient means possible.
Shipping automation can handle this process very quickly and effectively, without adding much time to the process.
Speed & Customer Experience:
Automation makes the fulfillment process faster. Getting more orders out the door in a shorter amount of time is often the first benefit people think of when considering automation. Increasing production allows for your business to grow, take on more orders, turn around those orders to customers faster, and more accurately, and in turn, increase sales and profits.
The other benefit of speed and accuracy is that your customers receive their orders in a timely fashion, without missing delivery expectations. With a significant increase in the number of choices in order fulfillment, excellent customer service, and personalized order experiences become a much bigger differentiator.
Watch Fulfillment Automation in Action:
Flexibility & Future Growth:
One of the most unsung heroes of fulfillment automation is flexibility and future-proofing. Fulfillment automation gives you the ability to scale with your business needs. When operations are not automated, peak periods like holidays can cause a huge strain on your business – requiring seasonal labor, shipping delays, and other constraints with meeting demand.
Automation can also allow your business to be prepared for growth. Automation gives you the flexibility to add new products and enter new markets without concern about your fulfillment operation being overwhelmed by the capacity.
Explore Fulfillment Automation Technologies:
When considering a fulfillment automation system, it is most efficient when it can be centrally controlled and integrated, all the way from picking, packing, shipping, and final sortation. StreamTech offers the integration necessary to bring all the automation together and maximize your return on investment.
Dimensional (DIM) weight, also known as volumetric weight is a pricing technique for commercial freight transport. This method uses an estimated weight that is calculated from the length, width, and height of a package. The air freight industry initially created DIM weight measurement. Low-weight packages that took up a lot of space were costing carriers revenue. To solve this problem dimensional weight was created which bases weight on the volume of the container. This is known as charging by dimweight.
The Formula Looks Like This:
(L x W x H) / DIM
A growing number of ground trucking companies have adopted dimweight. If you are considering fulfilling e-commerce orders through a carrier that utilizes DIM weight, it is vital to get the measurements correct. To get the biggest bang for your buck, you would be wise to spend time analyzing box sizes, and also researching which products fit into which container.
The Cost Of Not Dimensioning:
Chargebacks are the main driver for incorporating dimensioning solutions with the overall SLAM system (as well as weigh, scan, print/apply). As carriers/shippers have incorporated stricter rules, there are added costs for parcels that exceed certain lengths as well as weights and chargebacks for inaccuracies. Chargebacks exceed the costs associated with just doing it right the first time.
UPS charges an additional $1 fee per package if the inaccuracies on the total of your packages in a given shipment pickup amount to over $5 average per package. A traditional fishing pole example – it’s super lightweight but very long. If shipped based on weight alone, there would be a carrier chargeback. For more details on these costs, check out this post from ShipWorks, a multi-carrier software provider.
How Can You Streamline This Process?
Getting the data correctly is a must for optimizing costs and fulfillment, but what happens if you get it wrong? The short story is you get charged. As the e-commerce industry evolves so does the cost related to fulfilling these orders. Increased prices cut into the margins for sales which means mistakes are now a direct cost to the shipper.
Capturing all of this data and getting it correct is time-consuming and stressful. If you are now asking yourself, “How do I solve this problem?”, You are in the right place. StreamTech has successfully designed and implemented shipping automation systems that not only weigh but dimension and get it right every time.
As a manufacturer of custom shipping, compliance labeling, and a wide variety of additional material handling systems we recognize that everyone starts somewhere. The most common comment(s) we get regarding automation fulfillment is, “Automating my process would be nice but, we are too small…don’t have enough throughput… can’t afford it. While some of these statements may be true hurdles before diving into automation, we believe the Sprinter™ Shipping System is a good first step to negating these entry barriers.
What Does The Sprinter™ Do?
More often than not someone walks up to the StreamTech Demo Sprinter™, studies it, and then asks, “But what does it do?” From the outside, the Sprinter™ looks like nothing more than a piece of conveyor shuffling cartons through and slapping a label on them. The inner workings of the Sprinter™ are gathering, connecting, and verifying data to simplify end-of-line processes.
The Sprinter™ all-in-one shipping station is capable of scanning, weighing, dimensioning, printing, and applying labels and verifying. It can also integrate with a multitude of additional features. Ten feet doesn’t seem like a significant impact, but by combining the individual process that is manually done you are not only saving space but time with an all-in-one system.
The Sprinter™ comes into play after the pick and pack process. We also manufacture other fulfillment automation processes that fall into place before the Sprinter™ such as picking automation or pack automation. An order has already been tied to the LPN (License Plate Number) or unique identification number. The Sprinter™ can handle a minimum carton size of 4” W x 6” L and a maximum of 21” W x 26” L. The carton is typically closed and ready to go through the end-of-line fulfillment process.
Induction Scan
The first step in most processes is identifying what you are working with. The Sprinter™ is no different. Its first order of business is to scan the LPN or identification barcode. Unique identification is required when manifesting a carton for a carrier. This can be the specific order number or a number that is uniquely associated with the order. The Sprinter™ is capable of scanning a wide variety of barcode symbologies, sizes, and locations.
Once the barcode is examined, it is now ready to add details. One of the many beneficial aspects of the Sprinter™ is its Allen-Bradley-based control system. The open architecture allows the Sprinter™ to expand and integrate with existing and future operations quickly. Additional features such as a dimensioner can speed up operations and provide accurate, error-free details to the carton.
Weighing
The weight of the carton is captured and recorded in StreamTech’s Warehouse Control System (WCS) software. The Sprinter™ scale is suitable for weighing parcels up to 75 lbs. and 28” long. With a throughput of 14-18 cartons per minute, the Sprinter™ scale is a viable option for taking your first step into automating the end-of-line fulfillment process. For faster throughput and additional options, we offer upgraded scales.
Dimensioning
Automating dimensional weighing is a valuable option that saves on many fronts. We utilize a laser-based system with an encoder that measures the carton to the nearest 0.25 inches in 3 dimensions. Automating dimensioning can mean significant time & cost savings. On average it takes an employee 15-30 seconds to measure and record the dimensions of a carton.
Along with those 15-30 seconds come mistakes occasionally. Sprinter™’s dimensioner cuts that time down to a fourth and also does it error-free as it records the data into the StreamTech Sprinter™ software. You are now holding your carriers accountable for dimweight charges along with maintaining your service level.
Print And Apply Labeling
All of the data we require for each carton has been captured and recorded. It’s time to print and apply the shipping label. StreamTech utilizes an all-electric print and apply applicator. It is low maintenance and offers easy label roll change-out. The 14” tamp comes standard with an option for a 22” as an upgrade. For even faster operations we utilize a larger printer applicator with the capacity to hold 3,800 labels per roll with a 36” tamp stroke.
Verify
Accuracy is the Sprinter™’s forte. After all of the pieces of the puzzle come together they are checked one last time to make sure they are correct. The Sprinter™ scans the LPN and shipping label for a parity check. If all checks out the carton are sent down its proper carrier lane. If there is a problem with the parcel it will be sent down the “jackpot” lane for review by an employee.
Watch a Demo:
The StreamTech Sprinter™ is a great first step into automating end-of-line fulfillment processes.
Through Its All-In-One Nature The Sprinter™ Shipping System Brings Numerous Benefits:
Reduce manual labor
Eliminates the need for shipping stations dedicated by carrier
Holds your carrier accountable for dimweight charges
Eliminates data entry errors
Increases your throughput while maintaining your service level
Paired with a multi-carrier system the Sprinter™ automates rate-shopping, address verification and proof of delivery
An eyeglass fulfillment operation faced significant challenges in delivering its daily orders to over 500+ stores across the United States and Canada within designated timeframes. Despite employing several full-time workers dedicated to order fulfillment, the operation encountered difficulties in keeping up with the workload, leading to a high frequency of manual errors.
The issue was further compounded by a typical backlog that extended a staggering 80 feet back into the packing area, severely impacting the company’s operational efficiency.
Our Solution:
StreamTech provided a complete bolt-on addition to the customer’s UPS Worldship application. Instead of a unique order ID or license plate, each carton had a label that simply represented a store. We also included customized end-of-day reporting. Overall the system helped the customer gain the following benefits:
Reclaiming floor space from many manual workstations
Allowing the customer supervisors to leave on-time and get home to their families.
The local conveyor integrator noted how easily the Sprinter™ was able to control adjacent conveyors for seamless automation. Another system is on order for a second facility!
