transport & logistics · panies get paid for the actual space the item occupies, covering...

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Increase Productivity with High Performance Weighing & Measuring

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METTLER TOLEDO has over 25 years of experience in providing solutions to the transport and logistics industry and acts as a consultant on optimizing terminal productivity. This guide offers practical information about what it means to implement a dimensional weight pricing strategy and what to consider when switching to automatic measuring. Get tips on how to increase throughput, guarantee high read rate and optimize parcel and pallet han-dling. Automatic measuring helps you to meet your goals and ensure customer satisfaction.

Table of contents

Automatic Data Capture for Full Control of Goods 3

Dimensional Weight Pricing Implementation and Benefits 6

Maximize Revenue Potential through Automatic Measuring 10

Technology and Software Features to Improve your Process 17

Maximizing Uptime - Securing your Investment 20

Moving Forward with Automation 22

In a world of tight deadlines and impatient customers, carriers must be swifter than ever. To stay competitive, Transport and Logistics companies must get everything done – measuring, sorting, loading, tracking and deliv-ering - within a very tight time frame. This guide offers advice on optimiz-ing efficiency and revenue through automatic measuring.

Optimize ProductivityAnd Increase Profits

PublisherMettler-Toledo CargosanUlvenveien 92 B0581, OsloNorway

Subject to technical changes© 06/2011 Mettler-Toledo AGPrinted in Norway

METTLER TOLEDO - Dimensioning Productivity Guide

32011©Mettler-Toledo AG METTLER TOLEDO - Productivity Guide

Automatic Data CaptureFor Full Control of Goods

IdentificationWhen every parcel and pallet is going to a different location at a different time, it is essential that each item has a unique ID. The automatic capture of barcode information improves the material handling process by making it possi-ble to allocate an individual data profile to each item.

Weighing Weight data is required for price determination. Re-weighing of parcels and pallets ensures that discrepancies between actual weight and the weight submitted by customers are picked up and that invoices reflect the actual weight of an item. Weighing can be used for counting the items on a pallet to ensure the load is complete.

DimensioningAdding dimensions to an object’s profile opens up the pos-sibility of dimensional weight pricing. Correct size informa-tion enables a carrier to set a pricing strategy that reflects the real cost of transport; and facilitates load planning, reduces damages and delays and allows the best use of vehicle and storage space.

ImagingA picture can be used to compliment an information profile. Offering proof of correct measurement and invoicing, images are becoming increasingly important in tracking and identifying damages and theft.

Building a profile for the goods you handle is key to optimizing operational processes and improving profitability. The basis for this profile is Identification. Once each item has been identified it can be measured, sorted and tracked throughout the journey to its destination.

Contents

1 Full Data Transparency

2 Determination of Billable Weight

3 Lean Operations

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Efficient Sorting and Tracking Terminal productivity is about guiding an object through the whole process, from drop off to invoicing, as efficiently and smoothly as possible. A parcel may make many stops on the journey to its final destination and a full data profile is essential for correct sorting and tracking. Once the parcel’s dimensions, weight and ID are captured, this data should be communi-cated quickly to the host, which can then send a sig-nal to the sorting system. Any hang-ups at this stage of the process can result in delays and miss-sorts.

Quality ControlImages, weight and dimensions, combined with ID, give valuable information not only about the whereabouts of a parcel, but about its content and condition. Weigh-ing and dimensioning at different sites verifies that the parcel’s weight and shape are consistent and can deter-mine where damages or losses have occurred.

Full Process VisibilityFrom the service team to the end customer, automatic data collection is fundamental to all stake-holders in the process chain, lending transparency to each stage and affecting bottom line, capacity and operational efficiency.

The operations team relies on accurate information for efficient sorting and maximum throughput. In a well organized sorting loop it should be possible to track

an item to within millimeters of its location. Measure-ment statistics can be generated to distinguish trends or problematic areas of operation. The finance depart-ment benefits from a complete overview of how goods are invoiced. Accurate information is readily available in case of customer claims. Information can be made easily accessible to customers, providing shipment tracking visibility.

Example: Benefiting from Data TransparencyMETTLER TOLEDO recently helped one large parcel ex-press company to undertake a study of the type of par-cels processed in order to select the best technology for improving package flow. Pictures combined with weight and dimensional data were recorded for thousands of parcels. Optimization based on the recorded data gave a 3% improved read rate and huge revenue recovery. The pay-back period was three months.

1 Full Data Transparency

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A well organized terminal allows for:

• High throughput• Smooth parcel flow• Accurate measurements and ID• Low risk of miss-sorts• Elimination of unnecessary processes• Easy service

Dimensioning, Weighing & Scanning

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52011©Mettler-Toledo AG METTLER TOLEDO - Productivity Guide

2 Determination of Billable Weight

3 Lean Operations

Lean production is about eliminating waste and dis-covering discrepancies as early in the process as possible. Automation, standardization and continuous quality improvement are all benefits of automatic mea-suring and are in line with lean operation. A system that can identify when multiple packages are travelling side by side, when an item is missing a label or when a parcel is stuck on the conveyor will reduce the num-ber of stops and ensure smooth package flow. A sys-tem can be configured to give alerts when something is wrong, signal the sorter to send a parcel down a reject line or stop the conveyor for manual verification. Automated processes mean that items move faster through the terminal and spend less time in intermedi-

ate storage. Automatic solutions designed to meet spe-cific operational needs give full control and visibility throughout the process chain. Time, money and space are saved and quality control is built into the process. Resources can be optimized and unnecessary steps eliminated.

Key Principles of Lean Production:• Continuous Flow• Saves Time• Quality Control• Saves Space• Continuous Improvement

Today’s transport and logistics companies aim to have a data capture profile which makes it possible to compare dimensional weight with actual weight. In simple terms, dimensional weight reflects package density, which is the amount of space a package takes up in relation to its actual weight. Charging by weight alone for large, light items is not cost productive. Charging by dimensional weight allows a carrier to get paid sufficiently for items that take up a lot of space but weigh relatively little. This can have a dramatic impact on revenue.

Dimensional Weight vs. Actual WeightThe low density of this package means that a carrier will earn 50% more by charging based on dimensional weight instead of actual weight.

Actual weight: 8 kgDimensional weight: 16 kgBillable weight: 16 kg

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Should these parcels cost the same to ship?

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What is Dimensional Weight Pricing?Dimensional weight pricing was first introduced by international air carriers in order to make efficient use of cargo space. Today it is used by all major express companies and is slowly becoming the norm for all transport providers. As fuel charges increase, the type of cargo becomes more varied and typically denser, dimensional weight pricing is increasingly important for carriers as a more precise and fair method of invoicing for space.

How is Dimensional Weight Calculated?The dimensional weight of an object is calculated by determining its volume and dividing this number by a dimensional factor. The International Air Transport Association (IATA) has established a standard di-mensional factor, however companies often choose their own, based on the average density of their shipments.

Determining Billable WeightThe billable weight of an item is determined by comparing dimensional weight with actual weight and using whichever is greater. If an item is very large in relation to weight it is invoiced according to the space it occupies. If it is heavy and small, it is invoiced based on actual weight.

Because this parcel weighs almost nothing, an invoice based on actual weight wouldn’t reflect the costs of the carrier. By calculating the dimensional weight and using it as billable weight, the carrier can charge a price that better represents the cost of shipment.

No business can afford to give its services away. A carrier’s most valuable asset is space. If you don’t consider dimensional weight when pricing, you are not being paid properly for the service that you provide.

Dimensional Weight PricingImplementation and Benefits

Contents

1 Benefits of Dimensional Weight Pricing

2 Implementing a New Pricing Structure

3 Legal for Trade Compliance

4 Case Story - Jetpak Improves Data Control

Actual weight - 0.3 kg Dimensional weight - 3 kg Billable weight - 3 kg


72011©Mettler-Toledo AG

1 Benefits of Dimensional Weight Pricing

METTLER TOLEDO - Productivity Guide - Dimensional Weight Pricing

Proper Payment

Light, bulky items are expensive to send as they take up a lot of space compared to their weight. By charging by the size of an item rather than weight alone, transport com-panies get paid for the actual space the item occupies, covering actual cost of transport.

Space Optimization

Planes, trucks and containers often fill up before they reach their limitation in weight. Knowing the exact size of an object facilitates load planning, reduces the risk of delays and damages and ensures the best possible use of space.

Emission Reduction

More efficient load planning means more items per load and fewer vehicles on the road, or planes in the sky. Di-mensional weight pricing facilitates denser packing and encourages more careful use of packaging materials such as bubble wrap.

Correct Costing

Shippers need accurate quotes. Warehouses and freight forwarders want to avoid back charges. Carriers want proper payment for the space they provide. Accurate size information improves communication and benefits every-one in the supply chain.

2 Implementing a New Pricing Structure

Work Together as a TeamAccurate invoicing is fundamental to your whole or-ganization as it affects your bottom line. Involve both sales and marketing, engineering and operations. Ensure they understand the importance of dimensional weight pricing for profitability. Develop a communica-tion strategy and tools that explain for customers its advantages, such as fair invoicing and the environ-mental benefits of density based pricing.

Communicate Proactively with CustomersConsult your customers and help them to understand how to pack more efficiently. Consider providing pack-aging consultants to help shippers to understand the implications of dimensional weight pricing and plan accordingly for extra charges. Customers can protect themselves from dimensional weight back charges by automatically measuring their packages and providing

accurate data to you as their carrier. Providing your customers with information about such options will help them to adapt and find the best solution.

Negotiations and Special OffersKey customers can be offered dimensional weight terms such as a higher dimensional factor, discounts on surcharges or higher thresholds on the charges themselves. Work together to find a system that both you and your customer are happy with.

No Looking BackThe switch to dimensional weight pricing isn’t as daunt-ing as it seems. Your equipment supplier will be able to support you every step of the way. Making the change is necessary to remain profitable in today’s competitive climate. Once you have experienced the benefits, you won’t look back.

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Measuring for invoicing is regulated by Weights and Meas-ures authorities. When investing in measuring equipment, it is important to consider the legal requirements in your coun-try and ensure that systems are compliant, checking exactly what items it is approved to measure. The fewer limitations a system has, the easier it will be to automate processes and experience the benefits of automatic data capture.

Comply with Legal RequirementsIf measurements are to be used for invoicing, they should be recorded by a device that is Weights and Measures approved. Not only does an approval guarantee compli-ance with industry standards, it also ensures the quality of the measuring system. Customers know that they can trust the data that is used for invoicing.

Check for Approval LimitationsYour approved system needs to be valid for measuring all of the goods handled: some measuring technologies don’t measure certain items accurately enough to be legal for trade. For example, if a scanner cannot see a whole parcel or pallet, it won’t capture protrusions or irregulari-ties accurately. This often happens due to the fact that the measuring sensors cannot see a 360-degree view of the item, which results in ‘shadowing’. The diagram below shows how a dimensioner for cuboidal objects only sees the top surface of the pallet being measured, missing the protruding object at the bottom.

The Bulging Box ExampleMost people would categorize this box as regular in shape. It is, in fact, bulging out by approximately 1 cm on all sides. A dimensioner for regular shapes will not cap-ture this irregularity. The box is in fact 11% larger than the scanner can see. If you process a high number of parcels that can be classified as irregular in shape, it is important to consider the limitations of the measuring system you are planning to use. Even objects that appear to be square at first glance can have irregularities that cause problems during loading and may result in under invoicing.

Measurement of all SurfacesAnother challenge for some technology is measur-ing items that are wrapped in shiny, reflective plastic or have a surface colour that blends into the meas-uring background. Such wrapping materials are becoming more and more common. Thus it is important to consider whether a measuring solution is approved to measure all surfaces as well as shapes.

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Dimensioner approved for cuboidal objects Dimensioner approved for all shapes

Reported width = 92cmReported width = 80cm



Weight and Volume Control”In situations where it was urgent to get a package on-board, we sometimes used to prioritize recording its weight instead of volume,” says Lars Tømte, Manager of their Oslo Airport Terminal. ”Not only that, we couldn’t ensure quality control of weight and volume on 100% of deliveries that were sent to us from other airports.”

Ease of Use”The operations department was very keen to imple-ment an automatic solution,” says Jetpak CEO, Stein Arve Sørensen. Despite being initially sceptical as to how this would affect operational efficiency, he was positively surprised by the system which needs only a few seconds to collect the weight, volume and ID of a package. ”The system is so user-friendly that even I can operate it,” he laughs.

Optimal Sorting of Packages”One of the most important features for us turned out to be the tracking feature,” he continues. ”When a pack-age is scanned at the airport, the price of the shipment is sent via e-mail to the customer with the correct

weight and volume. Sometimes the price is lower than expected and the customers are even more pleased. They’re happy to know they are being invoiced fairly. It’s not about higher pricing, it’s about correct pricing.”

A Profitable InvestmentThe payback period of the system was around ten weeks, exceeding Jetpak’s expectations. Following such an improvement in productivity, Jetpak has since invested in a number of other solutions for its terminals around Scandinavia.

4 Case Story - Jetpak Improves Data Control

When Jetpak Norway identified the need for more accurate data and increased capacity, they threw away the old measuring tapes and invested in an auto-matic dimensioning, weighing and identification solution. The results were increased efficiency and an extremely quick payback time.

About Jetpak

The Jetpak Group offers door-to-door express deliveries, primarily within 12 hours. From focusing mainly on ad-hoc deliveries, the company is increasingly providing systemized and customer specific door-to-door express delivery solutions for time critical and high value products. Jetpak can be found in more than 140 locations in the Nordic countries and has about 700 trucks and 2,500 flights per day. Jetpak is owned by Polaris Private Equity and Accent Equity Partners. www.jetpak.com

“It’s not about higher pricing, it’s about correct pricing.”

Stein Arve Sørensen Jetpak CEO

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Automatically weighing and dimensioning parcels and pallets quickly determines whether customer declared values are correct. Discrepancies are identified and the invoicing system is updated to reflect the real price. Revenue Recovery is the term used to describe this process.

Contents

1 Automatic Measuring Solutions

2 Five Steps to Automation

3 Case Story - Blue Dart

4 Return on Investment

Identifying DiscrepanciesShippers often don’t have the time or the facilities to provide accurate data, and under-reporting of numbers is common. Measurements are typically done manually, and are therefore prone to mistakes.

If the customer who delivered this example package miscalculated its length, width and height by only 1 cm, the billable weight would be 7% less, mean-ing a difference of €4. Under-measuring each parcel can add up to thousands in un-recovered revenue each day. Automatic verification of dimensions pro-vides the real size of parcels and pallets for invoic-ing. Extra revenue gained through this extra quality check is money that would otherwise have been lost.

Customer Declared DataDimensions 80 x 30 x 40 cm = 96,000 cm³Dimensional factor: 6000 cm³/kgActual weight: 8 kgDimensional weight: 16 kgBillable weight: 16 kgBillable amount: € 115

System Verified DataDimensions: 81 x 31 x 41 cm = 102,951 cm³ Dimensional factor: 6000 cm³/kgActual weight: 8 kgDimensional weight: 17.2 kgBillable weight: 17.2 kgBillable amount: € 119

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112011©Mettler-Toledo AG METTLER TOLEDO - Productivity Guide - Automatic Measuring


Determining the Right SolutionStart by taking a look at your current process. Make an evaluation based on your throughput. Consider how many parcels you process, volume during peak hours and what the potential volume could be if you were able to increase productivity. Identify problematic areas in your operation. Where are the bottlenecks? Also think about the types of objects that move through your facility – parcels, pallets? What shape? What size? How are goods transported: Is there room for an automated conveyor system, or is handling done manually? All of these things will affect the type of system you should implement.

Automated Processes For optimal productivity and lean operation on an automated conveyor line, a dynamic weighing, dimensioning and scanning (DWS) system is ideal. The system captures the dimensions, weight and ID of each parcel as it moves along a conveyor. This eliminates the need for additional handling, as all data is captured in one process. The system can also provide sorting and tracking data that instructs the sorter to send the parcel to a specific destina-tion. DWS solutions can be integrated into any sorting environment, no matter how complex, and offer maximum control throughout the entire process.

Correct Barcode IdentificationUnattended, barcode scanners or cameras are typically used for automated processes, with multi-sided barcode reading giving the highest possible read rate. Packages with missing or damaged information can be stopped or diverted for manual inspection. An additional handheld reader can be used to scan any codes that the overhead barcode reader cannot see. For matrix coded labels, camera readers need to be used. Even RFID identification can be used in a well organised flow.

Systems for Small OperationsSmaller operations won’t have a fully automated line or advanced sorting system but productivity can still be improved significantly with automatic measuring. Typically, stand-alone, static measur-ing solutions are used. Triggered by an operator using a hand held reader, the systems capture dimensions, weight and ID. Data is then sent to the IT system and an invoice is automatically gener-ated. These systems can be easily integrated with label printers.

Contents



3 Case Story - Blue Dart


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l Tailor Made Solutions For Every Requirement

From cost effective scales that provide fast and accurate results to full data capture solutions that record dimensions, weight and ID, there are the solutions on the market for any material handling process. Modular systems can be customised to suit specific information needs.

Up to 400 Parcels per HourFor use in processes with throughput of up to 400 parcels an hour, with little need for transporting goods on a conveyor, a static, table top measuring system is a good solution. Dimensions, weight and ID are recorded by triggering the scanner using a handheld barcode reader and the measurements are transferred to the customer host. Easy to install and to connect to label printers and scanning devices, a static dimensioner, such as the CSN810 TableTop™ is quick to set up and will cause little to no disruption to operations.

Up to 3,000 Parcels per HourTo capture a full data profile in higher throughput operations of up to 3,000 parcels an hour, a dynamic solution is required. An automatic dimensioning, weighing and scanning solution can be built up to suit your data capture and throughput requirements and integrated with any sorting environment, large or small. The TLX MultiCapture™ has different configurations for varying throughput and sorting requirements. It can be used as a fully automatic solution that diverts non-readables or can be configured to stop when an object is missing necessary data, allowing an operator to key in the parcel information manually. Several bar-code reading configurations are available for maximizing the read rate.

Mass FlowMass flow applications require a solution that can accurately capture dimensions and ID of touching parcels. In such an application, weight cannot be captured unless the flow is singulated further down the line. The PILAR® technology of the CSN210 MassFlow™ creates thousands of vertical parallel scans that can see ev-ery detail of each object, in the highest throughput conditions. An advanced sorter logic is required for mass flow situations to ensure that each item ends up at its planned destination.

CSN810 TableTop™

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Modular SystemsThe beauty of today’s transport and logistics solutions is their modularity. Most systems can be customised to suit individual data capture and application needs. The METTLER TOLEDO FlexFlow™ concept allows customers to select their own components for their exact ID, weight and conveyor control requirements, all of which are controlled by proprietary OCTO DataCapture™ software. You get a solution tailored to meet your exact requirements.

Non Legal for Trade Pallet DimensioningThe simplest pallet dimensioners on the market are designed to measure pallets of all shapes but may have limitations when measuring irregular shaped objects. Such systems should not be used to measure irregular shapes in legal for trade invoicing applications, but can be an excellent introduction to automatic pallet dimensioning, especially in situations where accuracy requirements are less stringent. The CSN840 SingleHead™ is a cost effective pallet measuring solution that can be integrated with any floor scale and barcode reader.

Pallet Dimensioning for All ShapesTo measure irregular shaped pallets in legal for trade applica-tions, you need a pallet measuring solution that is approved for all shapes. The CSN840 Pallet™ measures all shapes and surfaces with very high accuracy. The dimensioner’s three heads enables it to see the object being measured from all angles. It captures protrusions, bulges or any other irregularities. Such pal-let solutions can often be upgraded with features such as pallet taring, forklift taring and image capture.

ID Weight Dimensions Sorting & Tracking

Image Capture

Data Merging

CSN840 SingleHead™

CSN840 Pallet™

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1. Implement an Efficient Identification Method The first step in an automatic process is deciding how to identify the items you handle. Your decision will depend on how much information you want a label to carry. The most common method is barcode reading. Matrix labels contain more data but require cam-era scanning, which is often a larger investment. RFID may be the future of identification but currently poses a number of challenges and is only feasible in an extremely organ-ized flow. Decide at what stage labelling should be done. The leaner you want your pro-cess to be the earlier labelling should be done.

2. Decide on Operational Flow To optimize operational flow, you need to consider throughput and the items to be con-veyed. Manual intervention always means risk of disturbing automatic processes and misplacing data. The distance that an object must travel will determine what type of solution you need. If long conveyor lines are needed, automatic data capture is most appropriate, if you operate in a small warehouse environment, with goods moving over less distance, static measuring may be sufficient. Independent of flow, strive to capture data within the same area in as few operations as possible to keep track of data.

3. Decide on Necessary Data The more data captured, the better control you have of your goods. However, not eve-rything needs to be done in one step: a data capture program can be implemented in stages. First, identify the specific challenges in your operation and thus which data is essential to ensure efficiency. If insufficient time for measurement is a key issue, then automatic dimensioning and identification will be a fundamental step in your process. If miss-sorts and conveyor jams affect you, perhaps you need to consider a solution that offers parcel positioning.

4. Establish a Procedure for Handling Rejects On a fully automated line, there will be a certain number of no-reads and there are dif-ferent ways of dealing with them. Your system can be configured to stop for human intervention if a label is un-readable. This however compromises throughput. A reject line can be set up to allow all un-readable items to be diverted and dealt with sepa-rately. If speed is your main priority, you may decide to let the no-reads pass through, but do all you can to make sure you have equipment employed that offers the highest possible read rate in all conditions.

5. Final Layout and Infrastructure Based on your chosen identification and data capture method, supporting IT infrastruc-ture should be selected. It is recommended that customer data be stored in a certified database. Dynamic systems are often slowed down by the slow response of a com-puter host system; make sure that you spend enough time and effort on building up an adequate IT resource.

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3 Case Story - Blue Dart Moves Towards Automation

Handling approximately 1,800 parcels per hour per loca-tion, equipment that can perform precision data capture at high speeds is essential to Blue Dart, Bangalore. To find the best solution for their needs, they invited Mettler-Toledo to study their handling process and make an assessment for improving productivity.

From Consultation to InstallationBefore investing in an automatic data capture solution, Blue Dart undertook a label optimization project, designing new, standardized labels in order to make the transition to automation as smooth as possible. Mettler-Toledo then began by mapping Blue Dart’s operations, including how parcels were received, measured, weighed and identi-fied and how parcel data was stored. A proposal was put together for a new process that would help Blue Dart to achieve its goals.

Dimensioning, Weighing, Scanning & MoreThe TLX MultiCapture™ was identified as the solution that could best enhance Blue Dart’s process and improve productivity. The TLX is a fully automated dimensioning, weighing and scanning solution that would meet Blue Dart’s goals of high data quality and security while offering the required throughput and sorting capability.

The turn-key solution included customized software, which would be integrated with Blue Dart’s host, and the image capture option that takes a picture of each parcel.

More Business - Increased RevenueBlue Dart now has 100% control over revenue leakage, no longer needs to rely on manual intervention and can guar-antee parcel safety. The company’s fully approved, Legal for Trade system offers it the added security of knowing its measuring process meets industry standards.

What Blue Dart Had to SayMichael Pereira, Vice President of Operations at Blue Dart, com-mented: “It’s a highly user friendly system. We are seeing a drastic decrease in revenue leakage. We can also ensure the safety of parcels and have increased cus-tomer confidence. The system has enabled us to gain more business.”

As South Asia’s premier express package distribution company, Blue Dart strives to maintain customer satisfaction by operating better, faster and safer. To achieve this, Blue Dart understands the necessity of investing in state-of-the-art technology. Recently, the company chose METTLER TOLEDO’s TLX MultiCapture™ to guarantee accurate invoicing and data security.

About Blue Dart Express Ltd.Blue Dart’s extensive network covers over 25,714 locations in more than 220 countries through its sales alliance with DHL. As South Asia’s premier courier, and an integrated express package distribution company, Blue Dart is an innova-tor in terms of both technology and customer service.

“We are seeing a drastic decrease in revenue leakage.”

Michael Pereira Vice President of Operation

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The Express CarrierA small parcel express company, processing around 400 parcels per day, already had a dimensional weight pricing structure in place but didn’t have time to re-measure all items and often relied on measurements supplied by custom-ers. It made the decision to invest in the CSN810 TableTop™, a static dimensioning, weighing and scanning solution.

Average number of parcels measured per day 400

Average shipping cost per parcel $40

Average daily revenue recovery ($2 per parcel) $800

Return on Investment Less than 2 months

The Freight ForwarderMETTLER TOLEDO recently conducted a pilot test with one of the largest freight forwarders in the USA. A CSN840 Pal-let™ dimensioning solution was installed in one of the company’s major break bulk facilities. During the test, forklift drivers measured approximately 400-500 pallets of different sizes, shapes and surfaces per day. After a month of data collection, the company was able to compare the data to the actual bill of ladings and calculate how much revenue the CSN840 could recover after integration into existing operations.

Average number of pallets measured per day 450 - 500

Average number of pallets re-classified based on density 11

Average potential revenue recovered on re-classified pallets $130

Average daily revenue recovery $1430


The ShipperIn order to accurately invoice customers for delivery costs and avoid back charges from its carrier, one electronics logistics company invested in an automatic dimensioning, weighing and scanning solution to measure outgoing goods and update its customer invoicing system.

Number of parcels shipped per day 2000

Average cost per object shipped $20

Reduced daily shipping costs ($0.2 per parcel) $400


Calculate your own ROIwww.mt.com/dimcalculator



Technology and Software Features to Improve your Process

There is a variety of data capture technology on the market and your choice will have an impact on productivity. Read rate is what matters most. The more packages measured accu-rately the more smoothly processes will run. Additional software features such as image cap-ture, health monitoring and reverse measuring also significantly affect operational efficiency.

1 Importance of a High Read Rate

The higher the read rate of your system, the higher the potential for both revenue recovery and smooth package flow. To ensure maximum read rate, when evaluating a solution you should consider whether it can:

Measure all ShapesTechnology that uses a vehicle scanning pattern will capture details for the accurate measurement of all shapes. Another option is to install multiple scanners mounted at an angle so that their beams cover the item from all sides.

Measure all SurfacesMake sure the system you choose can measure all surfaces. Some scanners are ‘blinded’ by reflective surfaces and won’t produce accurate results on pack-ages with certain coverings.

Measure Down to 0 Metres per SecondIn a typical parcel handling environment, the belt will occasionally be stopped during a sort. Ensure that no packages are missed by choosing a system that can measure down to 0 mps. If a scanner can only sees packages moving above a certain belt speed, any item moving through the scanner as the system slows down or restarts will not be measured.

Contents

1 Importance of a High Read Rate

2 More than Just Data Capture: Added Value Extras

3 Case Story - TNT

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2 More than Just Data Capture: Added Value Extras

To enhance efficiency further, there are a number of different software features avail-able that can further add value to your investment in automatic dimensioning, weighing and scanning.

Optimized Sorting with Side-by-Side DetectionIn many sorter systems, objects must be singulated for proper handling. The side-by-side feature detects when two parcels are touching and reports the problem to the host. The software can split the packages and correctly measure and sort both items.

Improved Visibility with Image CaptureMeasuring solutions can be integrated with camera devices that take pictures of each item measured. These images can then be stored in a searchable database and used as evidence of correct invoicing and the con-dition of an object when measured.

Reduce Jams with Parcel PositioningKnowing where a parcel is on the belt, its size and its angle, is important for maximizing sorting efficiency. If a par-cel is too big to travel down an out-feed it can be directed to a different area in the sorter. Parcel positioning is an advanced feature and is used to reduce jams and improve tracking throughout the system.

Accurate Measuring of Flats for Maximum Read RateThe measuring of letters and flat packages can be made possible by mounting the dimensioner over a split in the belt. Single sheets of paper can even be measured if the scanner is mounted in this way.

Health MonitoringFeatures such as health monitoring and remote diagnostics are designed to ensure the uptime of your sys-tem. Health monitoring software will monitor the pulse of all components of a system so if something goes wrong with the scale or the barcode reader you will be alerted. Remote diagnostics allows a service techni-cian to access the system remotely to identify and fix the problem quickly.


Ensuring Data is SecureA measuring system should have the necessary features to guarantee that data cannot be tampered with. A firewall is a great feature to ensure that only authorised personnel and devices have access to captured data. Linux based operating systems are resis-tant to known viruses and ensure that data is not altered by software or bugs. Your system should come with legal for trade alibi storage so that your customers know that information generated by your system can be trusted.


3 Case Story - TNT Introduce Automatic Measuring of Pallets

While parcel dimensioning has become standard in the carrier industry, it is still fairly common for pallets to be measured by hand. This is changing as carriers realise that pallet dimensioning is one of the areas in which there is the greatest potential for revenue recovery. By ensuring they have correct weight and vol-ume data on pallets, companies can invoice according to the amount of space goods occupy in their vehicles.

From Manual to AutomaticTNT wanted a solution to integrate into five different terminals in France. In these depots, pallets were previously measured by hand, which is time consuming and can be inaccurate. To speed up the process and ensure correct results, the company decided to invest in the CSN840 Pallet™.

Easy Integration The system was set up in the five differ-ent locations over existing scales that TNT already used to weigh their pallets. It was integrated with existing software through a specialised interface created specifically for

them by METTLER TOLEDO. This interface will make it easy to install METTLER TOLEDO solutions at TNT sites all around the world.

Measuring More Pallets Due to time constraints, TNT used to meas-ure only 40% of pallets that passed through five depots in France. Now, they measure 90% and earn more money on each pallet measured.

A Quick ROIIn one depot, there had formerly been no time to measure pallets at all, and these had been charged by weight only. Here, the CSN840 fur-nished an exceptionally incredibly quick return on investment – paying for itself within a period of two weeks.

Advanced Software FeaturesThe CSN840 has a number of features to further enhance productivity. The OCTO ImageCapture™ takes a picture of each pal-let measured for customer confidence and to complete the data profile.

TNT has been a valued customer of METTLER TOLEDO for years. So when it needed a system to capture the dimensions, weight and ID of pallets passing through its hubs in France, it once again turned to us. The CSN840 Pallet™ can measure almost any pallet and ensures a return on investment within weeks.

About TNTTNT is an international market leader in the business of transferring goods and docu-ments around the world tailored to its customers’ requirements with a focus on time-definite and / or day-definite pick up and delivery. It is TNT’s business to deliver the “business” of its customers at the right time and at the right place. TNT serves more than 200 countries and employs around 160,000 people.

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Max

imiz

ing

Uptim

e Maximizing Uptime Securing your Investment

When using a measuring instrument, you need to be confident not only that your results are accurate and pre-cise, but also that your system is running around the clock. Downtime is expensive and affects productivity. To gain maximum benefit from your equipment, it must be properly installed, calibrated and maintained.

1 Calibration

Calibration for AccuracyWhen measurements are used for invoicing, the perfor-mance of equipment must be tested and documented to meet regulatory compliance. Every measuring solution should be properly calibrated and documented for proof of performance so that you can be certain your processes meet requirements. Proper calibration will maximize system reliability, reduce the risk of error and give consistent results your customers can rely on.

A Calibration Maintenance Agreement from your supplier will give you on-going confidence in your equipment. Also discuss calibration and maintenance service plans to help protect yourself from audit risk and other liability issues that could arise as a result of out-of-specification equipment.

Contents

1 Calibration

2 Service & Maintenance

3 Ergonomic Solutions

2 Service & Maintenance

Pro-active maintenance and parts logistics are essential for increasing uptime on your transport and logistics equipment. Likewise, a service plan should be in place to protect your investment and ensure that your system is up and running again as quickly as possible should something go wrong. It is important that you work with a supplier, which has the



3 Ergonomic Solutions

Ensuring System LongevityOne precaution that can be taken as early on as the investment stage is to choose equipment that is as robust as possible. Your systems should be ergonomically designed with minimum moving parts, which are subject to wear and tear.

Modular SoftwareModularity is another important aspect to consider. A system should be flexible enough to allow for upgrades and updates as technology or software becomes dated. New value-add features are continuously being developed and so to continuously improve it is essential that your data capture system’s software is easily adaptable. Both hardware and software can be built up into various configurations to support you throughout the entire data capture process.

Designed for Industrial EnvironmentsMake sure that your system is rugged enough to operate in the rough industrial environment you work in. Your equip-ment should be able to operate in extremes of temperature and regardless of external vibrations. Units should be sealed to resist dust and dirt, and robust enough to endure knocks and bumps with no effect on system performance.

infrastructure to service your equipment as soon as a problem occurs.

Remote Diagnostics and MaintenanceChoosing a system with remote access and health monitoring capabilities will help to guarantee maximum system uptime. Health monitoring software automatically checks the most important parameters of each component of your measuring solution and notifies you of potential problems. Should a problem occur, remote access allows a speedy diagnosis from service technicians wherever they are. Quick diagnosis means that no time is wasted in getting your system back up and running. Maintenance and upgrades can also be done remotely so that a service technician need never step foot on site.

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Mov

ing

Forw

ard

with

Aut

omat

ion Moving Forward

with Automation

Moving towards automation needn’t be a daunting thought. It can be done in steps and at different levels. Whether your operation calls for fully automated, semi automated or static measuring, there are solutions for every requirement. Whatever you measure and whatever the size of your operation, the benefits of auto-mation are the same.

1 Reasons to Implement Automatic Measuring

Revenue Protection

Make sure you are paid properly for the space you pro-vide by automatically verifying measurements provided by your customer.

Quality Assurance

Ensure all data you capture is correct. Automatic meas-urements guarantee quality data that is repeatable, verifiable and accurate.

Customer Protection

Automation increases the control you have over goods and guar-antees correct invoicing. Make sure not only that you get properly paid but that your customers receive correct invoices and are not overcharged. Reduce your number of mis-sorts, damaged items and be prepared with accurate data in case of customer claims and disputes.

Contents

1 Reasons to Establish Automatic Measuring

2 Moving Forward

3 METTLER TOLEDO - Total Solutions Provider



Brand/Reputation Protection

A strong brand gives customers assurance of quality, drives repeat purchases and justifies pre-mium pricing. With proof of correct invoicing from a legal for trade measuring device, your custom-ers can be sure that yours is a brand to trust.

Adherence to Industry Standards

Compliance with Weights and Measures regulations is mandatory in most countries. When using measurements for invoicing, they must be obtained with a legal for trade measuring device. OIML, NTEP and MID approvals not only guarantee compliance to industry standards, but also demon-strate the quality of your system.

Maximized Capacity

A smooth, organised traffic flow makes it possible to maximize capacity. Automatic data capture allows you to make the most out of your operation and work in as lean a way as possible so that parcels, pallets, or anything else which you ship, doesn’t have to remain in the terminal for long, making way for the next delivery.

2 Moving Forward

METTLER TOLEDO has the broadest range of measuring solutions and works with the biggest names in the industry. We will map your processes and make a proposal for improving operational efficiency. By analyzing operational processes and discussing individual challenges we can put together a plan to help you achieve your goals.

The Express Business is called so for a reason. Automatic measuring will ensure that you work at maximum capacity and that your pallets and par-cels don’t stay in the terminal for long. Investment in an automatic dimen-

sioning, weighing and scanning solution is virtually fool proof. Along with revenue recovered on items that have been accurately weighed and dimensioned, better use of resources, increased throughput and increased business through customer trust will all have a positive effect on your bottom line.

Olav Stadaas,

Managing Director

Mettler-Toledo Cargoscan

For more informationwww.mt.com

Mettler-Toledo Cargoscan ASUlvenveien 92BOslo N-0581Tel.: +47 23 06 77 77Fax +47 23 06 77 78

Subject to technical changes©06/2011 Mettler-Toledo Cargoscan ASPrinted in Norway 792090

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transport & logistics · panies get paid for the actual space the item occupies, covering...

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