Fulfillment automation has changed how distribution centers operate, offering an endless number of ways to increase efficiency at nearly every stage of the fulfillment process. But when upstream processes like picking are automated, downstream processes like packout struggle to keep up, creating bottlenecks that disrupt the entire operation.
Packout inefficiencies lead to missed shipping cutoffs, increased transportation and material costs, and disappointed customers. Worse yet, they undermine sustainability efforts, contributing to unnecessary waste and Scope-3 emissions. As warehouses continue to automate upstream, optimizing packout becomes essential to maintaining a balanced, efficient operation. Thankfully, there are solutions available to streamline packout and bring balance back to your distribution center.
The Automation Evolution
Warehouse automation is no longer optional; it’s essential to stay ahead in the competitive logistics landscape. More than a quarter (26%) of warehouses are expected to be automated by 2027, up from 14% a decade earlier, according to Interact Analysis. Autonomous Mobile Robots (AMRs), automated storage and retrieval systems (ASRS), and other goods-to-person solutions achieve higher throughput with less labor. However, as automation optimizes one part of fulfillment operations, it can create constraints downstream at packout, where manual processes often can’t keep up.
The Packout Challenge
Packout is the final stage in preparing items for shipment. Packers receive items to be shipped, select a carton, and add any void fill necessary to secure items and prevent damage during transit. As automation accelerates picking, items arrive at packout faster than they can be packed. Picking units per hour (UPH) increases, but packout UPH remains the same, creating a bottleneck that slows the entire process.
Root Causes of Packout Inefficiencies
The packout zone struggles to keep pace with automated picking because it hasn’t been optimized. Packout is frequently neglected; relying on outdated and inefficient legacy cartonization to determine how orders are packed can be damaging in the short and long term.
Many Warehouse Management Systems (WMS) rely on basic cartonization algorithms such as ‘liquid fill.’ While basic cartonization in the past has been ‘good enough,’ it is no longer acceptable in a world with accelerating e-commerce demand.
One of the key issues is that packout processes are still manual, with human packers struggling to keep up with increased order complexity. Mistakes are common for human packers faced with high order volumes, such as choosing the wrong box size, forgetting items, or using incorrect amounts of void fill. On top of that, additional factors, like fatigue and inconsistent packing speed, also contribute to these inefficiencies that lead to unnecessary costs.
Another factor is the lack of real-time data integration between automated picking systems and packout. Without accurate and timely data, packers may not have the information they need to choose the best packaging solution for each order, further hindering the process. This lack of synchronization between different parts of the fulfillment operation is a major contributor to packout bottlenecks.
Bottom Line and Environmental Impact
Packing inefficiencies impact every corner of fulfillment, driving up costs, straining customer relationships, and undermining sustainability goals. Delays at packout stall orders, increasing the risk of missed shipping cutoffs and leaving customers frustrated. Manual packout processes, such as selecting the wrong box size or using excessive void fill, lead to poor volume utilization. With dimensional weight pricing (DIM) charging for capacity rather than weight, oversized boxes can significantly increase shipping costs. For shippers, these inefficiencies directly threaten profitability by driving up transportation and material expenses.
The environmental toll is equally concerning. Inefficient packout practices waste void fill and corrugated materials, adding to both costs and landfill waste. Packages with unused space also take up more room in trucks, requiring additional vehicles to move the same volume of orders. This inefficiency inflates Scope-3 emissions, which are coming under increased scrutiny from businesses, customers, and regulatory bodies. While upstream automation has enhanced fulfillment efficiency, it also amplifies downstream packout challenges, creating an urgent need for solutions that restore balance and reduce waste.
Solutions for Streamlining Packout Efficiency
Packout doesn’t have to be the weak link that slows down your entire fulfillment process. Packout optimization eliminates inefficiencies and ensures all parts of your operation work together seamlessly. Here are five effective solutions to improve packout efficiency and alleviate bottlenecks.
1. On-Demand Packaging Machines
Automating packout with on-demand packaging machines increases the speed and efficiency needed to keep pace with automated picking. Solutions, such as Packsize, create right-sized cartons for each order, reducing wasted space and packing materials.
2. 3D Cost-Aware Cartonization
3D cost-aware cartonization software can be integrated with on-demand packaging solutions to identify the optimal set of cartons and pre-build them ahead of the packing process. Paccurate’s cartonization software, provides real-time 3D packing instructions, helping associates pack faster and minimize wasted space and materials. By providing detailed visual instructions, packers can complete their tasks with fewer errors and greater speed.
3. Cross-training Employees
Another effective method for increasing packout efficiency is cross-training workers. By cross-training, employees can be reassigned to packout during peak times. This flexibility allows associates to easily switch between picking and packing tasks as needed, ensuring that no area becomes overwhelmed and operations remain smooth.
4. Creating a Buffer Zone
Lastly, introducing a buffer zone to temporarily store items before packout can balance the workflow between picking and packing. A buffer zone acts as a holding area until packers can manage the capacity. This becomes helpful during peak times when order volumes spike.
Embracing a New Era of Balanced Fulfillment
Addressing packout bottlenecks can improve efficiency across all areas of fulfillment. By combining upstream automation with optimized packout processes, businesses can ensure that every stage of fulfillment works together seamlessly. Solutions like on-demand packaging machines and 3D cost-aware cartonization reduce inefficiencies, cutting both material and transportation costs.
These improvements have a tangible impact on sustainability. Optimized packout minimizes void fill and corrugated waste while reducing the number of trucks required to ship orders. This directly lowers Scope-3 emissions, helping businesses align with regulatory requirements and sustainability commitments.
By prioritizing packout optimization, distribution centers can meet customer expectations, improve profitability, and reduce their environmental footprint. Businesses that embrace these solutions now will gain a competitive edge in an increasingly demanding logistics landscape.
Learn more about how forward-thinking, high-volume shippers are addressing packing inefficiencies through the use of cost-aware cartonization.
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