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E-tailer cushions itself in a perilous environment

Air-cushion-making machinery, conveyors, case tapers and printers provide operational efficiency at embattled e-tailer e-Toys’ new distribution facility in Ontario, CA.

An eToys operator inspects a boxed order to determine how many air cushions will be necessary to prevent excessive product movem
An eToys operator inspects a boxed order to determine how many air cushions will be necessary to prevent excessive product movem

New dunnage-making equipment, conveying systems, case tapers and printers efficiently package orders at eToys’ 764ꯠ sq’ distribution center in Ontario, CA. To protect these Internet-ordered parcels during shipment, workers manually insert air-filled plastic bags into corrugated shipping cases. The bags fill voids in boxes, limiting product movement to help prevent damage.

The facility uses different sizes of the high-density polyethylene Cell-O air cushions, from 4”x8” to 8”x8”. The cushions, and the Cell-O MKII machines that fabricate them, are supplied by FP Intl. (Redwood City, CA). The portable machines are positioned near the end of the six packaging lines at the Ontario facility. The cushions are held in large blue storage bags above the lines.

Conveyor systems that carry boxes filled with customer orders to the packaging lines are provided by Rapistan Systems (Grand Rapids, MI). Later, loaded cases are taped shut on equipment from BestPack (Rancho Cucamonga, CA). Case-coding equipment comes from American Barcode Concepts (Phoenix, AZ).

The equipment was installed at the Ontario facility for its opening last June. The company started operations in 1996. According to Richard Tannenbaum, the company offers more than 125ꯠ skus on its www.etoys.com Web site. Anticipating holiday seasons, the distribution center runs 24 hours a day, seven days a week. During non-rush times, the plant runs either five or six days a week, operating either one-and-a-half or two daily shifts, he says.

At the time of Packaging World’s late-December interview, Tannenbaum was eToys’ director of fulfillment strategy. He was reportedly terminated shortly thereafter, apparently part of a 700-person layoff announced by the toy e-tailer in early January.

Order picking

For now, the company continues to ship toys, books, videos, music and other children’s products from the massive Ontario center. Products range in size from replacement kite string to swingsets, in weights from a few ounces to around 100 lb. The Ontario facility receives products packaged from manufacturers, storing them in its warehouse.

Workers try to pack one order per box, depending on the number and sizes of items in each order. Tannenbaum says that about 10 orders are typically placed on a cart and brought to each of 165 packing stations. The station operator packs those orders one at a time, selecting the appropriate box for an order from among 13 possible case sizes.

“We developed an internal, proprietary warehouse management system in which we have a digital image and information about each sku,” he says. “When a packer is packing a particular order, he or she can see the image on the screen to verify that the right item has been selected. The packer would also use a bar-code scanner to scan a UPC code on the packaged item, then choose the box size that would best fit that particular order,” Tannenbaum explains.

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