Automated packaging system polishes fulfillment operations

Based in Knoxville, Tenn., Jewelry Television (JTV) sells more gemstones than any other company worldwide, with jewelry and gemstone shipments exceeding 5.5 million orders per year. When significant business growth resulted in the opening of a new distribution center, JTV took the opportunity to implement an automated packaging system (Sealed Air, sealedair.com) to increase product throughput, safety and visibility.

Prior to the switch, orders were picked by hand and sent to one of more than 60 individual shipping stations, each equipped with scales and multiple printers. Fulfillment depended on employees at shipping stations to scan tickets, place them on the scale manually, print labels, place the product and invoice into a pre-made envelope and apply the shipping label to the envelope. The process offered limited verification and required a great deal of physical space.

In May 2011, the company installed five new automated packaging systems in the new fulfillment and distribution facility. With this system, employees allocate incoming orders and pick with an RF device to a tote, which is routed to one of four lanes in the shipping department. The invoice is scanned and all items are verified to ensure the correct items are being shipped.

An employee places the tote on a line that routes to the new automated packaging system. Product is transported by belt drive into the system, where two rollers compress two layers of cohesive corrugated or laminate material around the item. The edges are sealed in the same step, and packages emerge securely packaged, weighed, labeled and ready to ship.

“We don’t have a brick-and-mortar presence, so every item we sell is shipped,” says Chris West, vice president of logistics for JTV. “Getting those items safely and securely from our warehouse to their final destinations in a timely manner is critical to the success of our company.”

The new system has increased efficiency and shortened cycle times significantly, creating a 15% increase in package throughput without the use of overtime hours or increased labor. The company says it took less than 12 months to see a full return on investment.