Not Sure About What’s Around the Corner?
Respond to Uncertainty with Automated Packaging
Article Summary: Automated Packaging offers Enhanced Performance Throughout Order Fulfillment System
Automated packing and shipping improvements show great promise toward facing the labor and competitive challenges. In this article, we discuss the benefits of right-size packaging and autoboxing and introduce a leading equipment provider. Lastly, we consider how to derive maximum value from these sophisticated machines by optimizing upstream and downstream integration.
How to Improve Order Fulfillment Systems
Analysis and reflection are an integral part of success.
- What worked?
- What didn’t work?
- What’s next?
As we review system performance with clients, a short list of topics continually rises to the top: Labor challenges, automation decisions, and the intersection of both.
We are also constantly adapting to the new world of continual uncertainty, leaving all of us asking the same question: in the face of ongoing unpredictability, what is the “best next step” to get the most from limited capital resources?
If this sounds like you, you’re not alone.
Throughout these conversations there is one solution we feel broadly addresses these circumstances:
Automated Packaging
In addition to the value of the solution itself, two criteria push this topic to the top of the list:
- Execution of the solution is achievable in the short run
- The solution can provide positive results for the variability expected in the future
Let’s look closer at how this focused automated mechanical solution can provide a cost-effective path toward increased confidence and performance.
Is Packaging not a relevant for you? We encourage you to continue reading to learn more about how single solutions can produce downstream benefits. And then, reach out to David anytime for a free evaluation of your specific needs.
Material Handling System Performance and Labor Challenges
Without a doubt, labor constraints are the most common challenge in our industry.
Labor is typically assigned to tasks that are difficult to automate. For example, pick/place, packing, and trailer load/unload.
With this in mind, we compared the challenges experienced in 2022 and expected in 2023.
In 2022, throughput was constrained by the designed system capacity and availability of labor resources to work in highly labor-intensive portions of the outbound process, such as packaging.
If systems are upsized based on 2022 volume, operators are likely to miss future KPIs, due to the reduced rate of volume increases expected. And possibly even seeing volume drop.
Increasing capacity may not be a reliable strategy moving forward.
Challenges to the Material Handling Sector
In addition to labor concerns, the threat of recession also looms on the horizon. This leaves fulfillment operators in a quandary: How to meet demand and lower exposure in a volatile labor market, in uncertain economic conditions, with restrained budgets?
Therefore, we need a solution that provides consistent delivery to customers while navigating unforeseen changes in sales and an unstable labor supply.
Enter Automated Packaging
The beauty of this solution is that it allows shippers to flex through uncertainty, yet readily able to return to the high-volume environment we expect in the long term.
Packaging and Right-Sizing to Optimize DIM Weight
Shipping and Order Fulfillment System Performance
Labor savings is just the beginning of the value an automated packaging solution can deliver to your operation. For instance, right-size packaging also offers financial, operational, and environmental benefits.
While labor savings is typically front of mind when making automation decisions, right-sized packaging imparts cascading benefits to downstream sortation and shipping systems.
For instance, a smaller box means higher throughput, less palettes, and increased orders on the outbound dock.
Lower DIM weight means lower shipping costs and better pricing for customers.
Learn more about In-Line Weight and Dimension Solutions.
And if we pause to consider the environmental impact of right-sized packages – less corrugated, lower fuel usage, more efficient use of trailer space – it is a win-win for everyone. And a great talking point for your marketing and publicity teams!
Packaging and Autoboxing Solutions
Lately, one automated packaging solution has captured our attention.
CMC Packaging Automation is a market leader, offering a unique approach that empowers system integrators like SilMan to provide excellent results for our clients.
Let’s take a closer look.
CMC Packaging Automation is based in Italy. The company launched in 2013 with a “box on demand” solution and expanded rapidly into a worldwide operation. You may enjoy this graphic timeline of their packaging journey on their website.
CMC offered a comment in support of this article:
“Packaging for shipping remains the most intense manual labor operation in the entire order fulfillment process and the largest opportunity to reduce your fulfillment costs”, states Vincent Halma, North American CEO of CMC Packaging Automation Solutions. “Paired with significant savings in transportation and supplies, customers implementing right-size automated packaging systems are experiencing ROIs as short as 6 months.”
The CMC Genesys is the first automated solution for high-volume, multi-line orders without any human loading or pre-consolidation requirements. (Photo and caption by CMC Packaging Automation)
Environmental Concerns
As mentioned above, Sustainability is a core benefit of right-size packaging. Therefore, it is not surprising that CMC Packaging Automation has devoted substantial attention to the topic on its website.
One-Touch Material Handling System Design, Integration and Implementation
We can’t always say “the big players are using this technology, so should you”. In this case, companies in a variety of industries have embraced packaging optimization tools.
The results provide a clear ROI incentive, beginning with optimizing team member productivity.
Furthermore, right-size packaging is a scalable solution that can be implemented in a broad range of businesses, small and large.
However, automated packaging systems, like all mechanical and controls, are valueless on their own. The real magic is connecting and integrating these tools in a way that supports the performance objectives of your entire material handling system, especially the last 100 feet.
- Sortation
- Readers & Scanners
- Dimension & Weight
- Print and Apply
- SLAM – Ship, Label, Apply, Manifest
System Integration at SilMan Industries
The SilMan System Integration Team’s approach is a unique offering to fulfillment and distribution center operators.
This enables SilMan to provide MHE system integration and retrofits from a single resource, leveraging the team’s extensive experience in brownfield environments.
Hands-on management of your project through every phase is the secret sauce that keeps our clients coming back for more:
- Consultation & Analysis
- Engineering & Design
- System Integration
- Mechanical / Electrical Installation
- Controls & Commissioning
- Power, Data & Utilities
To learn more about SilMan and our capacity to provide cost-effective warehouse automation solutions, reach out to David for a free analysis of your current system. He can offer specific suggestions to help your business reach the next level of performance.
About SilMan
SilMan Industries (previously SilMan Construction) is based in San Leandro, California.
Founded in 2008, the firm operates nationwide in three divisions – Construction, Material Handling and Site Services – and partners with “best in class” companies in the Industrial, Manufacturing, Distribution, and Public Works sectors.
For more information, please visit www.silmanindustries.com/about.
Frequently Asked Questions for Automated Packaging Systems
How long does it take to see a return on investment (ROI) for automated packaging systems?
Many companies implementing automated packaging systems achieve a full return on investment (ROI) in as little as 6 to 24 months. While the payback period varies by volume, complexity, and initial investment, savings are typically realized through reduced labor costs, optimization of package size for lower shipping rates, and decreased material waste.
How do automated packaging systems help solve current warehouse labor shortages?
Automation addresses labor shortages by shifting employees from repetitive, physically demanding tasks—like manual packing, taping, and palletizing—to more skilled roles, such as system supervision and maintenance. This allows a facility to significantly increase throughput and maintain production capacity without relying on a larger, volatile, and uncertain labor pool.
What is "right-size packaging" and how does it reduce shipping costs?
Right-size packaging uses machine vision and intelligent technology to measure items and create a custom-fitted box or package for each order. This process eliminates excess void fill and reduces the package's overall volume and weight. This is critical for reducing charges based on dimensional weight (DIM weight) pricing applied by major carriers.
What is the typical ROI for investing in right-size packaging automation?
The ROI for right-size packaging automation is often realized in 6-12 months, driven by direct cost reductions and efficiency gains. By dynamically selecting optimal box sizes based on item dimensions, these systems cut corrugated material use by 20-30%, lower DIM weight charges (saving 10-15% on shipping), and optimize trailer loading to reduce fuel and pallet needs. For a mid-sized distributor facing economic pressures, this translates to $100K-$500K annual savings on supplies and transport alone, per industry benchmarks. Upfront costs ($200K-$1M for turnkey installs) are offset by 2-3x productivity increases and minimized waste, especially in volatile 2025 markets with recession risks.
