It’s no secret that the e-commerce industry has been booming, with no signs of slowing down. In order to stay competitive, top retailers must find a way to meet increasing consumer demand without compromising on quality and efficiency in the distribution process. The real secret? Automation.
Some of the most successful online retailers are implementing automated packaging machine systems in their warehouses to streamline and enhance the packaging process. On Demand Packaging® allows businesses to generate a right-sized box for every single order, exactly when they need it, saving them time, money, and resources. In this blog, we’ll discuss how top retailers benefit from packaging automation and how others can get started today.
It may seem obvious that automation and speed go hand in hand. By implementing an On Demand Packaging solution into their warehouses, e-commerce businesses are able to get more orders out the door, faster, and more efficiently.
When an order is received, an automated packaging machine system will identify and generate the exact right-size box for the order in seconds. This reduces the likelihood that the wrong box size is selected – a common issue when working with limited stock boxes. Some machines, like the Packsize X7, can perform all of the necessary functions to make, pack, and ship a right-sized box for you, minimising, or even eliminating, the need for human touches in the packaging process. Other solutions, like the Packsize X5, can produce up to 600 ready-to-pack right-sized erected boxes per hour.
Most larger retailers, however, benefit from implementing a combination of automated packaging machines and accessories into their process flow. Leading western and work retailer, Boot Barn, implemented a complete automated solution in their fulfillment center that included three Packsize machine systems. This system allows them to get more than 1,000 orders packed, labeled, and onto the shipping truck every hour.
When implemented into a packaging process flow, automated packaging machines can streamline the packaging process, eliminating time spent digging through stock boxes, minimising human touchpoints, and getting more orders out the door, faster.
When considering automation, many companies are concerned with the return on investment with a large capital investment. It's important that stakeholders in a project consider the end to end impact of the implementation of these systems. The freight impacts and other savings drive rapid ROI and may provide opportunities to expand the scope of an automation project overall. Here are some examples of how automated packaging machines can impact your bottom line:
Stock boxes can be expensive, and on average are 40% oversized compared to the products they carry. On Demand Packaging machines use Z-Fold® (long sheets of corrugated), which are fed into the machine and cut down to the exact size box needed for each order. This ensures that you are getting the most out of your corrugated, with as little waste as possible. Performance Health went from 35 limited stock box sizes to producing over 3,000 unique right-sized boxes in just six months after implementing Right-Sized Packaging On Demand.
Z-Fold can be purchased in bulk, in the exact sizes and amounts you need, offering more flexibility in your operation and reducing the risk of overbuying and scrapping unused cartons. Right-sizing also reduces and often eliminates the need for void fillers, like packing peanuts and air pillows, saving on the extra material costs associated with them.
Automated packaging machines are just what they sound like – automated – meaning they reduce the amount of human touches required to move an order through the warehouse and onto the shipping truck. For many businesses that are experiencing the effects of the labour shortage, this can be a huge plus. On Demand Packaging allows you to upskill your current workforce and improve working conditions, providing a more ergonomic workplace. TNT Deals, a multi-channel fulfillment e-commerce company, was able to reduce their labour by more than 66% just by adding one X5 machine to their fulfillment center – all while increasing employee productivity and job satisfaction.
Automation also reduces the need to hire a seasonal workforce, because automation can scale and keep up with peak demand. This allows businesses to reallocate the majority of their labour to other areas of the warehouse, saving them money and increasing employee satisfaction.
Shipping costs involve more than just the actual weight, dimensional weight, and the destination shipping zone. Carriers also impose accessorial fees for things like oversized packages, fuel surcharges, residential delivery, and delivery area surcharges. Right-sizing lessens the impact of most of these charges by reducing the size and the number of packages you ship out, thus minimizing freight and transportation costs. We recently analysed the impact of right-sizing on outbound savings and found that across more than 11.6 million distribution orders, on average, Packsize customers reduced the cubic volume of cartons by 42% and experienced a 6% savings on transportation costs.
It may seem like the benefits of automated packaging machine systems stop at the end of an order's journey through the warehouse. However, research shows that customers care about their packaging experience more than you think. We conducted a consumer packaging survey that revealed 85% of consumers prefer corrugated shipping containers to plastic. Even more interesting is that one in every three consumers said they share their positive and negative packaging experiences with their friends and family.
Staples experienced the impact of a negative customer experience firsthand. After receiving countless complaints about their oversized and wasteful packaging, they decided to do something about it. Today, they utilise Packsize automated packaging machines in all of their distribution centers to streamline and right-size their packaging for each and every order, providing a faster delivery and better customer experience. Also CEVA Logistics has now a perfectly fitting box for every order which results in reduced transportation costs, smaller environmental footprint, and an increased customer satisfaction.
In a world where most people are doing their shopping online, your packaging is a big part of how customers experience your brand. Oversized boxes stuffed with void filler provide a negative unboxing experience compared to right-sized boxes for every order. Right-sizing also reduces the chance of damages happening during transit, by preventing items from shifting around as much, ensuring that products make it to their final destination in one piece.
For businesses that really want to take their packaging to the next level, you can deliver a complete brand experience by custom printing your boxes with your logo or a custom design. This adds personality to your packaging and creates a more exciting unboxing experience for the customer.
While there are many benefits businesses experience with automated packaging machines, perhaps the most important is the impact on the planet. It is essential that every individual does their part in protecting the health and future of our planet, but this is especially important for businesses to consider in their packaging and distribution practices. Plastic poly mailers and void fillers may seem convenient in the moment, but when top retailers are shipping out thousands of packages every hour, all that plastic adds up very quickly.
By right-sizing, businesses are able to minimise their carbon footprint significantly, and eliminate plastic from their packaging process. Corrugated material is recyclable and can be reused over and over again – and by right-sizing, businesses are able to minimise the amount of material they use in the first place. Smaller boxes also take up less space on trucks, allowing more orders to fit on a single shipping truck, and reducing the number of trucks on the road. Our research shows that, when done consistently, right-sizing can eliminate one in every three trucks, cutting down significantly on diesel emissions.
In some areas, sustainability in the packaging process will become a legal requirement, with legislation going into effect in many states and countries around the world. Businesses can get ahead of this by starting to invest in the sustainability of their packaging process now.
Packsize is a mission-based company, focused on creating a healthier planet through smart and sustainable packaging automation. To date, we’ve created more than 1.6 billion right-sized boxes and saved more than 9.5 million pounds of CO2 (and counting). With over 20 years of field experience, we are experts in right-sized Packaging On Demand. To learn more about how you can start automating your packaging process flow and reducing your carbon footprint, reach out to our packaging experts today for an evaluation.
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